Executive Branch Submits Labor Reform Bill to Congress

On December 11, 2025, the government introduced a wide-ranging proposal seeking to promote formal employment, improve competitiveness, and strengthen legal certainty through a substantial overhaul of existing labor rules. The Bill touches on individual employment law, collective labor relations, and procedural matters, introducing changes that—if enacted—will significantly reshape the Argentine labor landscape.

Key areas addressed in the proposal include:

1. Individual employment law: 
(i)    New rules on subcontracting and the use of third-party service providers.
(ii)    Adjustments to employers’ ability to modify working conditions.
(iii)    New non-remunerative social benefits.
(iv)    Updates to working time regulations.
(v)    Changes to leave, medical absences, and accident provisions.
(vi)    Revisions to the severance calculation base.
(vii)    Creation of a labor support fund available in termination scenarios.
(viii)    Amendments to the statutory framework governing agricultural workers.

2. Collective labor relations: 
(i)    Priority rules for company-level bargaining agreements.
(ii)    New rules on the duration and renewal of collective bargaining agreements.
(iii)    Regulations governing workplace assemblies.
(iv)    Minimum-service requirements in essential activities.
(v)    Modifications to current union-protection mechanisms.

3. Labor procedure: 
(i)    Updates to the indexation of labor credits.
(ii)    Installment payment options for court-ordered judgments for SMEs.
(iii)    Guidelines for expert-witness fee determinations.
(iv)    New rules on procedural impulse and expiration of proceedings.

The Bill also addresses platform-based work, proposing a specific regulatory framework, and introduces incentive mechanisms to promote registered employment.

Finally, the reform contemplates a reduction in social security contribution rates, including pension and healthcare components.