{"id":12024,"date":"2026-01-30T13:30:02","date_gmt":"2026-01-30T16:30:02","guid":{"rendered":"https:\/\/wsclegal.com\/?p=12024"},"modified":"2026-01-30T13:30:02","modified_gmt":"2026-01-30T16:30:02","slug":"understanding-argentinas-labor-modernization-bill","status":"publish","type":"post","link":"https:\/\/wsclegal.com\/en\/understanding-argentinas-labor-modernization-bill\/","title":{"rendered":"Understanding Argentina\u2019s Labor Modernization Bill"},"content":{"rendered":"<div class=\"wpb-content-wrapper\"><p>[vc_row full_width=&#8221;stretch_row_content_no_spaces&#8221; content_placement=&#8221;middle&#8221; css=&#8221;.vc_custom_1694620103250{margin-top: 0px !important;margin-right: 0px !important;margin-bottom: 0px !important;padding-top: 0px !important;padding-bottom: 0px !important;padding-left: 10% !important;background-color: #e8eef5 !important;}&#8221; conditional_render=&#8221;%5B%7B%22value_role%22%3A%22administrator%22%7D%5D&#8221; el_class=&#8221;titulopostcheckout&#8221;][vc_column css=&#8221;.vc_custom_1674106037719{margin-top: 0px !important;margin-bottom: 0px !important;padding-top: 0px !important;padding-bottom: 0px !important;}&#8221; conditional_render=&#8221;%5B%7B%22value_role%22%3A%22administrator%22%7D%5D&#8221;][vc_column_text css=&#8221;.vc_custom_1703777072463{margin-top: 0px !important;margin-bottom: 0px !important;padding-top: 3% !important;padding-bottom: 3% !important;}&#8221;]<\/p>\n<p style=\"text-align: left; margin-bottom: 0px;\"><span style=\"color: #003e59;\">Check out the latest <\/span><span style=\"color: #003e59;\">news on laws and <\/span><span style=\"color: #003e59;\">regulations.<\/span><\/p>\n<p>[\/vc_column_text][\/vc_column][\/vc_row][vc_row full_width=&#8221;stretch_row_content_no_spaces&#8221; equal_height=&#8221;yes&#8221; content_placement=&#8221;middle&#8221; conditional_render=&#8221;%5B%7B%22value_role%22%3A%22administrator%22%7D%5D&#8221; css=&#8221;.vc_custom_1692799876407{margin-top: 0px !important;margin-bottom: 25px !important;border-top-width: 2px !important;border-bottom-width: 2px !important;padding-top: 22px !important;padding-right: 10% !important;padding-bottom: 22px !important;padding-left: 10% !important;border-top-color: #bc9640 !important;border-top-style: solid !important;border-bottom-color: #bc9640 !important;border-bottom-style: solid !important;}&#8221;][vc_column width=&#8221;1\/2&#8243; conditional_render=&#8221;%5B%7B%22value_role%22%3A%22administrator%22%7D%5D&#8221; css=&#8221;.vc_custom_1674353033684{margin-top: 0px !important;margin-bottom: 0px !important;padding-top: 0px !important;padding-bottom: 0px !important;}&#8221; offset=&#8221;vc_col-xs-6&#8243;][vc_column_text css=&#8221;.vc_custom_1674242948387{margin-top: 0px !important;margin-bottom: 0px !important;padding-top: 0px !important;padding-bottom: 0px !important;}&#8221;]<\/p>\n<p style=\"text-align: left;\"><span style=\"color: #003e59;\">Insights<\/span><\/p>\n<p>[\/vc_column_text][\/vc_column][vc_column width=&#8221;1\/2&#8243; css=&#8221;.vc_custom_1674353042854{margin-top: 0px !important;margin-bottom: 0px !important;padding-top: 0px !important;padding-bottom: 0px !important;}&#8221; conditional_render=&#8221;%5B%7B%22value_role%22%3A%22administrator%22%7D%5D&#8221; offset=&#8221;vc_col-xs-6&#8243;][vc_column_text css=&#8221;.vc_custom_1707155900277{margin-top: 0px !important;margin-bottom: 0px !important;padding-top: 0px !important;padding-bottom: 0px !important;}&#8221;]<\/p>\n<p style=\"text-align: right;\"><span style=\"color: #003e59;\"> <a href=\"https:\/\/wsclegal.com\/en\/insights\/\"><img loading=\"lazy\" decoding=\"async\" class=\"alignnone wp-image-5363\" src=\"https:\/\/wsclegal.com\/wp-content\/uploads\/2023\/01\/flecha.png\" alt=\"\" width=\"20\" height=\"16\" \/><\/a>\u00a0 Back<\/span><\/p>\n<p>[\/vc_column_text][\/vc_column][\/vc_row][vc_row full_width=&#8221;stretch_row_content_no_spaces&#8221; conditional_render=&#8221;%5B%7B%22value_role%22%3A%22administrator%22%7D%5D&#8221; el_class=&#8221;sec-top&#8221; css=&#8221;.vc_custom_1675395705007{margin-top: 0px !important;margin-bottom: 0px !important;padding-top: 0px !important;padding-right: 10% !important;padding-bottom: 0px !important;padding-left: 10% !important;}&#8221;][vc_column][vc_single_image image=&#8221;11804&#8243; img_size=&#8221;&#8221; alignment=&#8221;center&#8221; css=&#8221;.vc_custom_1769777877714{margin-top: 0px !important;margin-bottom: 0px !important;padding-top: 0px !important;padding-bottom: 0px !important;}&#8221;][\/vc_column][\/vc_row][vc_row conditional_render=&#8221;%5B%7B%22value_role%22%3A%22administrator%22%7D%5D&#8221; el_class=&#8221;internapost margenmob&#8221; css=&#8221;.vc_custom_1674404868551{padding-top: 50px !important;}&#8221;][vc_column width=&#8221;4\/5&#8243;][vc_column_text css=&#8221;&#8221;]<\/p>\n<h1><span style=\"color: #003e59;\">Understanding Argentina\u2019s Labor Modernization Bill<\/span><\/h1>\n<p><em>In December 2025, the Milei Administration tendered to the Argentine Congress the Ley de Modernizaci\u00f3n Laboral (the \u201cLabor Modernization Bill\u201d or the \u201cBill\u201d). True to its title, the Bill endeavors to modernize the 1974 Employment Contract Act, which has been the statutory backbone to Argentina\u2019s employment laws for over five decades. Congress will begin its legislative debate on the bill February 10.<\/em><\/p>\n<p><em>The Bill aims to promote formal employment and to reduce litigation incentives. If enacted in its current form, the Bill will represent a significant step toward fulfilling President Milei\u2019s promise to liberalize the Argentine workplace. While it is too early to predict the legislative outcome, <strong>we expect most of <\/strong><strong> the following 10 initiatives will pass, which will significantly alter the rules currently governing Argentina\u2019s private employment sector<\/strong>.<\/em>[\/vc_column_text][vc_custom_heading text=&#8221;1. Redefining Compensation&#8221; use_theme_fonts=&#8221;yes&#8221; css=&#8221;&#8221; skin=&#8221;primary&#8221; show_border=&#8221;yes&#8221; border_skin=&#8221;primary&#8221; border_size=&#8221;xs&#8221;][vc_column_text css=&#8221;&#8221;]The Labor Modernization Bill reverses Argentine case law to exclude certain items from the definition of \u201ccompensation,\u201d including:<\/p>\n<ul>\n<li>Healthcare insurance.<\/li>\n<li>Equity compensation, including the granting or vesting of [stock options and the award of equity].<\/li>\n<li>Cellular phone and internet\u00a0services paid for or reimbursed for job-related purposes.<\/li>\n<li>Tips.<\/li>\n<\/ul>\n<p>Non-recurring payments, like performance bonuses or \u201cextraordinary payments\u201d demanded by a union under a collective bargaining agreement or given at the employer\u2019s discretion, remain included within the definition of \u201ccompensation.\u201d Nonetheless, the making of these non-recurring payments no longer defaults to an acquired right of an employee.<\/p>\n<p><strong>Why it is important<\/strong>: Excluding these and other items from the definition of \u201ccompensation\u201d should (a) reduce employment claims for under-reporting wages (b) narrow severance payments to reflect true wages and not incidental benefits and (c) restore greater flexibility for employers to design compensation structures. For decades, these items have been used by plaintiffs\u2019 attorneys to juice termination payments.[\/vc_column_text][vc_custom_heading text=&#8221;2. Enabling Wages in Foreign Currency&#8221; use_theme_fonts=&#8221;yes&#8221; css=&#8221;&#8221; skin=&#8221;primary&#8221; show_border=&#8221;yes&#8221; border_skin=&#8221;primary&#8221; border_size=&#8221;xs&#8221;][vc_column_text css=&#8221;&#8221;]The Bill authorizes the <strong>payment of wages in foreign currency<\/strong>.<\/p>\n<p><strong>Why it is important<\/strong>:\u00a0 Current law treats payment in foreign currency as \u201cpayments in kind\u201d and limits them to 20% of the employee\u2019s gross wages. Historically, this made sense to restrain an employer\u2019s payment of wages in vouchers or other practices that limited the employee\u2019s use of wages.\u00a0 It does not make sense for employers trying to retain talent by paying in U.S. dollars. While many employers elected to disregard the law in favor of protecting the workforce, the Labor Modernization Bill will remove uncertainty.[\/vc_column_text][vc_custom_heading text=&#8221;3. Limiting Liability for Outsourced Services&#8221; use_theme_fonts=&#8221;yes&#8221; css=&#8221;&#8221; skin=&#8221;primary&#8221; show_border=&#8221;yes&#8221; border_skin=&#8221;primary&#8221; border_size=&#8221;xs&#8221;][vc_column_text css=&#8221;&#8221;]The Labor Modernization Bill adopts greater restraint in extending joint and several liability for employment-related claims between the employer of record (\u201cEOR\u201d) and the beneficiary of the EOR\u2019s services.<\/p>\n<p><strong>Why it is important<\/strong>: The Bill undoes decades of case law and scholarship that have sustained joint and several employment law liability of both the EOR and the beneficiary of recurring services provided by the EOR. \u00a0While it maintains joint and several liability for services considered part of the beneficiary\u2019s \u201cregular activity,\u201d <strong>the Bill<\/strong> <strong>excludes<\/strong> <strong>ancillary activities <\/strong>(e.g., security, cleaning, product distribution) from a finding of joint and several liability with the EOR.[\/vc_column_text][vc_custom_heading text=&#8221;4. Simplifying Employer Recordkeeping&#8221; use_theme_fonts=&#8221;yes&#8221; css=&#8221;&#8221; skin=&#8221;primary&#8221; show_border=&#8221;yes&#8221; border_skin=&#8221;primary&#8221; border_size=&#8221;xs&#8221;][vc_column_text css=&#8221;&#8221;]The Labor Modernization Bill eliminates the need to maintain either a Payroll Journal or an Overtime Registry<strong>. <\/strong>Rigorous requirements on employer recordkeeping are also repealed. The employer\u2019s employment recordkeeping obligation is limited to the online registration of employees with the Federal Tax Authority.<\/p>\n<p>Post-employment certificates are deemed delivered when made available at the company\u2019s offices or upon electronic delivery to the former employee by reliable means.<\/p>\n<p><strong>Why it is important<\/strong>: The Bill greatly reduces the administrative burden on the employer and eliminates all-too-common gamesmanship by former employees alleging they were not timely given post-employment certificates (which would entitle them to a hefty fine).[\/vc_column_text][vc_custom_heading text=&#8221;5. Deregulating Vacation Day Schedules&#8221; use_theme_fonts=&#8221;yes&#8221; css=&#8221;&#8221; skin=&#8221;primary&#8221; show_border=&#8221;yes&#8221; border_skin=&#8221;primary&#8221; border_size=&#8221;xs&#8221;][vc_column_text css=&#8221;&#8221;]The Bill disrupts 50 years of statutory control over when an employee can take vacation days, allowing employers and employees to agree on timing and to split vacation day entitlements (no less than seven days).<\/p>\n<p><strong>Why it is important<\/strong>: This provision evidences an underlying vision of the Milei Administration to deregulate the economy in general and the workplace in particular, formalizing a long-standing private-sector practice of flexible scheduling and splitting of vacation days.[\/vc_column_text][vc_custom_heading text=&#8221;6. Deregulating Overtime and Scheduling&#8221; use_theme_fonts=&#8221;yes&#8221; css=&#8221;&#8221; skin=&#8221;primary&#8221; show_border=&#8221;yes&#8221; border_skin=&#8221;primary&#8221; border_size=&#8221;xs&#8221;][vc_column_text css=&#8221;&#8221;]The Labor Modernization Bill allows the employer and the employee greater flexibility to agree on scheduling, compensation for overtime, and accrual of downtime. Part-time employees are also eligible for these arrangements.<\/p>\n<p><strong>Why it is important<\/strong>: This represents a drastic shift from historic statutory rigidity, which assumed an employee\u2019s absence of individual bargaining power. It also is a specific nod to Argentina\u2019s strategic industries (ag, oil &amp; gas, and mining) that have lobbied for greater flexibility.[\/vc_column_text][vc_custom_heading text=&#8221;7. Tightening Rules on Medical Leave and Reinstatement&#8221; use_theme_fonts=&#8221;yes&#8221; css=&#8221;&#8221; skin=&#8221;primary&#8221; show_border=&#8221;yes&#8221; border_skin=&#8221;primary&#8221; border_size=&#8221;xs&#8221;][vc_column_text css=&#8221;&#8221;]Under the Bill, for any medical leave not based on work-related illness or injury, the employee must provide a digitally signed medical certificate issued by a licensed physician, containing the diagnosis, prescribed treatment, and rest days.<\/p>\n<p>The Bill also entitles the employer to deny reinstatement of employees seeking partial disability. If reinstated with less hours or lesser responsibilities, the employer may prorate wages accordingly.<\/p>\n<p><strong>Why it is important<\/strong>: The employer is now better equipped to respond to questionable claims of medical leave supported by a non-medical professional and to demands for reinstatement even if the employee is unable to perform the same tasks.[\/vc_column_text][vc_custom_heading text=&#8221;8. Adjusting Statutory Severance&#8221; use_theme_fonts=&#8221;yes&#8221; css=&#8221;&#8221; skin=&#8221;primary&#8221; show_border=&#8221;yes&#8221; border_skin=&#8221;primary&#8221; border_size=&#8221;xs&#8221;][vc_column_text css=&#8221;&#8221;]The Labor Modernization Bill addresses certain ambiguities in calculating statutory severance payable to employees terminated without cause. In criminally simple terms, this payment equals years of service times the terminated employee\u2019s \u201chighest recurring monthly compensation\u201d in the preceding 12 months. The Bill offers statutory guidance on \u201crecurring\u201d and excludes from the severance calculation such non-recurring payments as the prorated statutory bonus (<em>aguinaldo proporcional<\/em>), vacation days, and performance-based bonuses or awards.<\/p>\n<p><strong>Why it is important<\/strong>: As part of the effort to reduce employment litigation, the Bill removes decades of uncertainty and conflicting judicial opinions on how to calculate a terminated employee\u2019s statutory severance.[\/vc_column_text][vc_custom_heading text=&#8221;9. Repealing the Remote Work Law&#8221; use_theme_fonts=&#8221;yes&#8221; css=&#8221;&#8221; skin=&#8221;primary&#8221; show_border=&#8221;yes&#8221; border_skin=&#8221;primary&#8221; border_size=&#8221;xs&#8221;][vc_column_text css=&#8221;&#8221;]The Bill eliminates the 2020 Remote Work Law that was adopted during the COVID Pandemic to regulate remote and hybrid work arrangements.\u00a0 Among other employee benefits, the Remote Work Law afforded caregiver privileges during work hours, the employee\u2019s unilateral right to return to on-site work, and a partial employer subsidy of connectivity and utility costs.<\/p>\n<p><strong>Why it is important:<\/strong> Repealing the Remote Work Law restores contractual freedom, prompting employers and employees to craft remote work arrangements tailored to their mutual interests and the operational needs of the organization.[\/vc_column_text][vc_custom_heading text=&#8221;10. Creating a Severance Fund&#8221; use_theme_fonts=&#8221;yes&#8221; css=&#8221;&#8221; skin=&#8221;primary&#8221; show_border=&#8221;yes&#8221; border_skin=&#8221;primary&#8221; border_size=&#8221;xs&#8221;][vc_column_text css=&#8221;&#8221;]The Labor Modernization Bill implements a <em>Fondo de Asistencia Laboral<\/em> (Employment Severance Fund) to help cover statutory severance payments. The Bill requires employers to contribute a sum equal to 3% of gross wages to a pooled Employment Severance Fund created in the name of the employer. The employer\u2019s additional cost is neutralized by a like reduction in the employer\u2019s social security contributions.<\/p>\n<p><strong>Why it is important<\/strong>: Rather than allocate the cost burden entirely to the employer\u2014potentially ruinous to small- and mid-size enterprises\u2014the Bill would promote gradual funding and government underwriting of cost by reducing the employer\u2019s social security contributions.[\/vc_column_text][\/vc_column][vc_column width=&#8221;1\/5&#8243;][vc_widget_sidebar sidebar_id=&#8221;blog-sidebar&#8221;][\/vc_column][\/vc_row][vc_row conditional_render=&#8221;%5B%7B%22value_role%22%3A%22administrator%22%7D%5D&#8221; el_class=&#8221;sec-top margenmob&#8221; css=&#8221;.vc_custom_1674404924579{padding-top: 3% !important;padding-bottom: 15px !important;background-color: #e8eef5 !important;}&#8221;][vc_column][vc_column_text css=&#8221;.vc_custom_1674348029620{margin-bottom: 0px !important;padding-top: 5% !important;padding-bottom: 0px !important;}&#8221;]<\/p>\n<h2 style=\"text-align: left; margin-bottom: 8px;\"><span style=\"color: #003e59;\">More information<\/span><\/h2>\n<p>[\/vc_column_text][vc_custom_heading text=&#8221;&#8221; use_theme_fonts=&#8221;yes&#8221; skin=&#8221;primary&#8221; show_border=&#8221;yes&#8221; border_skin=&#8221;primary&#8221; border_size=&#8221;xs&#8221;][\/vc_column][\/vc_row][vc_row css=&#8221;.vc_custom_1674404931104{padding-bottom: 15px !important;background-color: #e8eef5 !important;}&#8221; conditional_render=&#8221;%5B%7B%22value_role%22%3A%22administrator%22%7D%5D&#8221; el_class=&#8221;margenmob&#8221;][vc_column width=&#8221;3\/4&#8243;][vc_column_text css=&#8221;.vc_custom_1769697211692{padding-bottom: 0px !important;}&#8221;]If you would like to discuss this matter with the attorneys at Wiener Soto Caparros, please do not hesitate to contact our authors.[\/vc_column_text][\/vc_column][vc_column width=&#8221;1\/4&#8243;][\/vc_column][\/vc_row][vc_row content_placement=&#8221;middle&#8221; css=&#8221;.vc_custom_1674405179900{padding-top: 0px !important;background-color: #e8eef5 !important;}&#8221; conditional_render=&#8221;%5B%7B%22value_role%22%3A%22administrator%22%7D%5D&#8221; el_class=&#8221;margenmob&#8221;][vc_column width=&#8221;1\/6&#8243;][vc_single_image image=&#8221;9861&#8243; img_size=&#8221;&#8221; css=&#8221;.vc_custom_1769777770404{padding-right: 0px !important;padding-left: 0px !important;}&#8221;][vc_single_image image=&#8221;6953&#8243; img_size=&#8221;&#8221; css=&#8221;.vc_custom_1769779872057{padding-right: 0px !important;padding-left: 0px !important;}&#8221;][\/vc_column][vc_column width=&#8221;2\/6&#8243;][vc_column_text css=&#8221;.vc_custom_1769778208667{padding-top: 5% !important;padding-right: 0px !important;padding-left: 0px !important;}&#8221;]<\/p>\n<h3 style=\"text-align: left; margin-bottom: 8px;\"><a href=\"https:\/\/wsclegal.com\/en\/ourteam\/maria-eugenia-ramirez\/\"><span style=\"color: #003e59;\">Mar\u00eda Eugenia Ram\u00edrez<\/span><\/a><\/h3>\n<p><a href=\"mailto:mramirez@wsclegal.com\"><img loading=\"lazy\" decoding=\"async\" class=\"alignnone wp-image-5301\" src=\"https:\/\/wsclegal.com\/wp-content\/uploads\/2023\/01\/Group-17.png\" alt=\"\" width=\"30\" height=\"30\" \/><\/a>\u00a0 \u00a0 <a href=\"https:\/\/www.linkedin.com\/in\/maria-eugenia-ramirez-93455929\/\"><img loading=\"lazy\" decoding=\"async\" class=\"alignnone wp-image-5678 \" src=\"https:\/\/wsclegal.com\/wp-content\/uploads\/2023\/01\/Group-10.png\" alt=\"\" width=\"32\" height=\"28\" \/><\/a>[\/vc_column_text][vc_column_text css=&#8221;.vc_custom_1769779949649{padding-top: 5% !important;padding-right: 0px !important;padding-left: 0px !important;}&#8221;]<\/p>\n<h3 style=\"text-align: left; margin-bottom: 8px;\"><a href=\"https:\/\/wsclegal.com\/en\/ourteam\/laurence-p-wiener\/\"><span style=\"color: #003e59;\">Laurence P. Wiener<\/span><\/a><\/h3>\n<p><a href=\"mailto:lwiener@wsclegal.com\"><img loading=\"lazy\" decoding=\"async\" class=\"alignnone wp-image-5301\" src=\"https:\/\/wsclegal.com\/wp-content\/uploads\/2023\/01\/Group-17.png\" alt=\"\" width=\"30\" height=\"30\" \/><\/a>\u00a0 \u00a0 <a href=\"https:\/\/www.linkedin.com\/in\/laurence-wiener-93023a1\/\"><img loading=\"lazy\" decoding=\"async\" class=\"alignnone wp-image-5678 \" src=\"https:\/\/wsclegal.com\/wp-content\/uploads\/2023\/01\/Group-10.png\" alt=\"\" width=\"32\" height=\"28\" \/><\/a>[\/vc_column_text][\/vc_column][vc_column width=&#8221;1\/2&#8243; css=&#8221;.vc_custom_1674353389193{margin-bottom: 0px !important;padding-top: 2% !important;padding-right: 4% !important;padding-bottom: 20px !important;padding-left: 4% !important;background-color: #ffffff !important;}&#8221; conditional_render=&#8221;%5B%7B%22value_role%22%3A%22administrator%22%7D%5D&#8221;]<div class=\"porto-sicon-box  vc_custom_1674353330788  wpb_custom_1efe903570d178ff0a9b7bfa5febd3a4 style_1 left-icon\"><div class=\"porto-sicon-left\"><div id=\"porto-icon-4840741206a2b840fcf57a\" class=\"porto-just-icon-wrapper porto-sicon-img\" style=\"font-size: 40px;\"><img loading=\"lazy\" decoding=\"async\" class=\"img-icon\" alt=\"\" src=\"https:\/\/wsclegal.com\/wp-content\/uploads\/2023\/01\/Vector-66.png\" width=\"53\" height=\"43\" \/><\/div><\/div><div class=\"porto-sicon-body\"><div class=\"porto-sicon-description\" style=\"\">\n<h4 style=\"text-align: left; 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color: #3a3a3a;\"><strong>Disclaimer<\/strong><\/span><\/p>\n<p style=\"text-align: left; margin-bottom: 8px;\"><span style=\"font-size: 14px; color: #3a3a3a;\">This article is based on publicly available information and is for informational purposes only. It is not intended to provide legal advice or an exhaustive analysis of the issues it mentions.<\/span><\/p>\n<p>[\/vc_column_text][\/vc_column][\/vc_row]<\/p>\n<\/div>","protected":false},"excerpt":{"rendered":"<p>The Bill aims to promote formal employment and to reduce litigation incentives. If enacted in its current form, the Bill will represent a significant step toward fulfilling President Milei\u2019s promise to liberalize the Argentine 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