ECIJA Argentina brought together experts and business leaders to analyze the new labour reform and its fiscal implications

ECIJA Argentina brought together professionals, business leaders and executives for a seminar analysing the recent Labour Reform approved by the National Congress.

The talk, "Labour reform and new fiscal provisions," was conducted by Federico Villarino, partner of the labour practice, and Andrés Chacra, partner of the tax practice, who provided a comprehensive overview of the regulatory changes and their practical implications.

A new landscape for labour relations in Argentina

The reform, which became law after extensive legislative debate, represents one of the most radical changes in formal employment in recent decades. Key topics addressed during the event included:

• New calculation of severance pay for dismissal: severance payments will be based solely on the normal monthly salary, excluding concepts like holidays or annual bonuses.
• Creation of the Labour Assistance Fund (FAL): a mandatory mechanism funded by contributions from employers designed to cover severance payments and provide labour assistance, with contribution rates varying according to the size of the company.
• Modification of the probationary period: the obligation to give notice, or to pay severance instead of notice, during this period is eliminated.
• Time bank and flexible holiday regime: agreements between employers and workers are allowed to compensate overtime with time off and to break the holiday period into smaller segments.
• Changes in subcontracting and outsourcing regulations: the joint liability of the user company is limited and control obligations concerning ancillary activities are relaxed.

Fiscal implications: a key chapter for companies

Beyond amendments to labour legislation, the regulation incorporates fiscal provisions with its own regulatory scope. The laws regulated by decree and the complementary regulations introduce large-scale reforms in the fields of taxation and administrative simplification.

During the talk, Andrés Chacra analyzed these measures and their interaction with the labour regime, highlighting the challenges of regulatory compliance and the planning opportunities that arise for the business sector.

Modernization or conflict?

The reform has divided opinions. While the Government maintains that the new framework will provide legal certainty and encourage investment, the trade union sector anticipates legal challenges over the alleged unconstitutionality of certain articles, particularly regarding severance pay for dismissal.

Experts agree that the true impact will be measured in practice: many of the tools introduced—such as the "time bank" or the possibility of creating dismissal funds through collective agreements—require voluntary agreements and, in several cases, are still pending regulation.

Informative note from the Labour Law Department of ECIJA Argentina.