Analysis of the Bill ‘Basis And Starting Points For The Freedom Of Argentines’
Labor & Social Security Law department report | Analysis of the Bill ‘Basis And Starting Points For The Freedom Of Argentines’
On June 28, 2024, the Chamber of Deputies ratified the reforms introduced by the Senate, successfully concluding the legislative process for the Bill of “Basis and Starting Points for the Freedom of Argentines” (the ‘Bill’).
The Bill is still pending promulgation by the National Executive Power, notwithstanding, we provide below an analysis of the main changes the Bill proposes in labor and employment law:
Title IV – Promotion of Registered Employment Relationships
The establishment of a regularization regime for unregistered or inadequately registered employment relationships initiated prior to the enactment of the bill is provided. It is envisaged that the executive branch will regulate the effects of such regularization, which may include:
-Termination of actions initiated under tax criminal law and application of other sanctions provided by special laws;
-Condoning of infractions and/or debts;
-Removal of registration from the Public Registry of Employers with Labor Sanctions (REPSAL).
Title V – Labor Modernization.
Chapter I – Modifications to the National Employment Law No. 24.013
-Registration of Employment Relationship: The employment relationship shall be considered registered when the worker is enrolled according to the forms and conditions stipulated by regulations that registration shall be deemed fully effective when carried out by any of the persons involved, irrespective of who may be considered the actual employer of the worker.
Capitulo II – Modifications to the Employment Contract Law No. 20.744
-Scope of Application: The provisions of the Labor Contract Law will not apply to contracts for work, services, agency, and those regulated by the National Civil and Commercial Code.
-Presumption of Existence of Employment Relationship: It is not applicable when the relationship involves contracts for works or professional services or crafts, and corresponding receipts or invoices are issued for such forms of contracting, or payment is made according to the banking systems determined by the corresponding regulations.
-Intermediation: It is stipulated that workers shall be considered direct employees of those who register the employment relationship, regardless of whether they were hired with the intention of utilizing their services or providing them to third-party companies. Joint liability of the user company is maintained.
-Probationary Period: The probationary period is extended to a duration of six (6) months. Additionally, it is established that Collective Bargaining Agreements may extend this probationary period:
Up to eight (8) months, in companies with six (6) to one hundred (100) employees; and
Up to one (1) year in companies with up to five (5) employees.
-Just Cause: Cases related to direct action measures are incorporated as labor injury justifying termination of the employment relationship with cause. Outsourcing: Outsourced workers are authorized to request that the principal withhold payments due to their employers and use them to pay, on behalf of the workers, salaries, severance payments, or other benefits arising from the employment relationship. Similarly, the withholding of amounts owed for social security contributions and contributions is allowed.
-Maternity Leave: The scope of application is expanded to the “gestating person,” and the option is given to reduce pre-birth leave to a minimum of ten (10) days.
-Discriminatory Dismissal: Aggravated dismissal due to discriminatory acts is incorporated, establishing an increased compensation of 50% (which, depending on the severity of the circumstances, judges may increase up to 100%) of the seniority indemnification. This compensation shall not be cumulative with any other special indemnification scheme. It is stipulated that the dismissal shall take effect in all cases.
Chapter III – Unemployment fund
-Seniority indemnification: Collective bargaining may replace this compensations regime with a termination fund at the employer’s expense. Employers can opt to contract a private capitalization system to cover termination costs.
Chapter IV – Independent Workers with Collaborators
-Unified Special Regime: Independent workers will be able to hire up to 3 independent workers to carry out a productive activity, with the creation of a unified special regime for this category. It is stipulated that this regime will be specifically applicable when the relationship is independent between the parties, that is, when the typical characteristics of an employment relationship (technical, legal, and economic dependency) are absent.
Chapter V – Agricultural Labor Regulations
-Probationary period: The probationary period is established for agricultural workers hired on an indefinite contract basis.
-Outsourcing Prohibition: The prohibition of using personnel placement agencies is repealed.
-Flexibility for Job Banks: Flexibility is introduced regarding job banks.
Capítulo VI – Repeals
-All fines related to faulty registration, failure to pay compensations, and non-compliance with the duty to provide work certificates as stipulated in Laws No. 24,013, 25,013, 25,435, 26,844, and 25,323 are repealed.
We remain at your disposal for any doubts or inquiries regarding this matter.
Regards,