New Rules for Part-Time Employment Contracts

The reform introduced by the Labor Modernization Law 27802, in force since March 6, 2026, has brought about significant changes to the concept of part-time employment as established in article 92 ter of the Argentine Labor Law (LCT), which will undoubtedly have practical implications.

 

The Situation Before the Labor Modernization Law

 

Under its former wording, article 92 ter provided that employment contracts were considered part time if:
 

• the working time was less than 2/3 of the standard working hours for the activity,
• remuneration was proportional to that of a full-time employee,
• if the agreed working time exceeded this, the employee was entitled to receive full-time pay for the month in which the excess occurred,
• part-time employees could not work overtime work, except in exceptional circumstances,
• social security benefits were determined according to the time worked and contributions made, while contributions and payments to the health insurance system had to correspond to those of a full-time employee in the same category.

 

Indeed, exceeding the 2/3 threshold of the standard working time—even if minimal and exceptional—automatically triggered the right to full-time remuneration. This led to claims for wage differences and acted as a disincentive to implement this type of contract, effectively encouraging hiring full-time employees. This was because the overall cost tended to be similar, but with greater predictability, even when the employer’s actual need was for a part-time employee. In this regard, employment opportunities were also limited for individuals who were unable to work full-time hours.

 

The New Article 92 ter of the LCT

 

The reform responds to the practical difficulties observed in the application of this modality.

Following the new wording, a part-time employment contract is defined as one in which the working time is less than the statutory or collectively agreed working hours applicable to the activity, without establishing a fixed proportion. If the applicable legal working time is not reached, remuneration is paid in proportion to the time actually worked.

This change makes it simpler and more practical to hire employees for a fraction exceeding 2/3 of full-time hours but less than full-time. It also clarifies uncertainties regarding situations or periods in which proportional remuneration applies as opposed to those requiring full-time salary payment.

Furthermore, the current regime allows part-time employees to work supplementary hours beyond the agreed working time, provided that such hours do not exceed the statutory working hours for the activity (notwithstanding the exceptions in article 89 of the LCT).

On the other hand, the reform did not introduce changes regarding social security contributions. Accordingly, the rule remains that contributions and payments to the health insurance system must correspond to those of a full-time employee, regardless of the actual time worked.

In conclusion, the reform appears to mark a shift in approach: part-time employment contracts cease to be rigid instruments and become a more realistic and functional option within the current labor market.