Deputies began debate on a new reform of work compensation

Fernando Brovelli Report.-

After a series of frustrated calls to discuss the projects of “union democracy“, the Labor Legislation Commission of the Chamber of Deputies met again for an informative meeting that anticipated the discussion of three initiatives on compensation and labor credits.

The initiatives presented aim at the reform of articles 255 and 276 of the Law No. 20,744 on Employment Contractcorresponding to the worker’s re-entry and compensation and the updating of labor credits due to monetary depreciation. Both sections were reformed through DNU 70/2023 and are in the middle of a judicial process.

Compensation for dismissals was already transformed in the last year, within the framework of the labor section of the Basis law sanctionedbut the demands of business organizations persist to unify criteria for the Labor judicial chambers, that contemplate the salary evolution and do not involve closure of SME companies.

Interventions in the Labor Legislation Commission

The first speakers were representatives of different business organizations, such as the Argentine Chamber of Commerce. There his representative, Esteban Mancuso, highlighted the “enormous incidence of workloads in CAC member companies“and pointed out that SMEs “are burdened by a conviction” whose “judicial updates have dissimilar criteria.” After qualifying the rulings as “exorbitant, erratic and inequitable”understood that they hinder the “generation of quality jobs.”

Given the recurrence of the participation of business organizations, Sergio Palazzo (Union for the Homeland) intervened: “Here it seems that we are talking only about how we improve the situation for companies. If there is a judicial ruling, it is because there was a company that committed an error and the subject of preferential constitutional protection is precisely the worker; here it seems that the orientation is different.” Subsequently, the official asked to speak Paula Omodeo: “It seems to me that mark the field for the speakers and telling them what perspective they have to have is a debate that we have to have among ourselves.

Then, it was the turn of two union lawyers. Sebastian Serrano Alou stated that to establish compensation it is necessary that its value “be compensated over time and punish the debtor,” in addition “compare it with real parameters of our economy, such as inflation“. In turn, Rodrigo Guillermo Argiz He understood that it is necessary to analyze “what the purchasing power of credit is today, and what the power of credit was at the time of dismissal. If it gives you less, clearly we are facing an unreasonable bill.”

The Labor Lawyer Osvaldo Pablo Jofré He stressed the “need to reach a consensus on this issue of the rate given the disparity of criteria that exist in the National Chamber of Labor Appeals” and postulated that “the solution has to be given towards the future but also towards the trials in progress.” After exemplifying cases of labor trials that implied an increase of 400 in compensation for late payments: “We cannot let the best investment that can be made in the market be a labor trial“.

Labor Reform: what compensations were regulated by the Bases Law

Approved in July and regulated in September, it establishes that “the parties may replace compensation provided for in article 245 of law 20,744 by a severance fund or system in accordance with the parameters established by the national Executive Branch. Employers may choose hire a private system at your cost in order to resolve the compensation provided for in this article and/or the sum freely agreed upon between the parties in the event of separation by mutual agreement in accordance with article 241 of law 20,744.”

In this way, unions and employers will be able to negotiate, within the framework of the collective agreementa system of work stoppage that replace the current compensation. Within the agreement, more than one separation system may be agreed upon.

In detail, the amount and payment methods may be linked, in the Termination Systemto different parameters of the employment relationship: age, type of contract or specific characteristics of the activity. On the other hand, the new legislation also allows modalities of mediation or conflict resolution to be agreed upon, in the event that disputes arise between the parties.

The system includes three formats: individual cancellation (direct payment from the employer to the worker as happens today), Individual or collective Termination Fund (cumulative monthly contributions, with percentage and amounts to be agreed upon in advance) and Individual or group insurance (with insurers authorized by the National Insurance Superintendency).

Martin Tetaz

Martín Tetaz, head of the Labor Legislation Commission.

Mariano Fuchila

Thus, in this way, the Cessation System arrives to finally replace the traditional seniority compensation provided for in article 245 of the Employment Contract Law.

The law allows it to be established that, at the beginning of a new employment relationship, both the employer and the worker must agree whether they wish to register in the Labor Termination System provided for in the collective agreement or, on the other hand, whether they choose to maintain the traditional compensation system. of the Employment Contract Law.