The initiative of the Executive Branch is based on “Investment and Employment Promotion Law” projectpresented by the representative of La Libertad Avanza (LLA), Romina Diezalong with 14 other co-authors of the same block. Among them, José Luis Espertone of the economists closest to the president Javier Mileiand Gabriel Bornoronipresident of the ruling bloc in the lower house.
The president’s intention is to move quickly with structural reforms and the aspiration would be to achieve labor modernization is sanctioned during the first half of the year.
Although President Milei always denies that the exchange rate is behind, privately he recognizes that the appreciation of the peso puts local companies, particularly SMEs, under greater competitive pressure, which he considers necessary. advance in lowering the Argentine cost.
The official strategy also contemplates that, once the labor chapter is resolved, the conditions will be in place to send the reform of the pension regime to Congress.
Labor modernization
The project of the deputy ten contemplates in its first Title the “Labor Modernization” and proposes in this sense changes in Law 20,744 of Employment Contract. 2
One refers to the “inalienability” and postulates that “any agreement of parties that suppresses or reduces the rights provided for in this law, the professional statutes and collective labor agreements will be null and void.either at the time of its celebration or its execution, or the exercise of rights arising from its extinction.”
In this way, it would allow all those conditions agreed upon above the law or collective labor agreements, that is, those agreed between the parties or by custom, to be waived by the worker.
It plans to modify article 66 of the Employment Contract Law, proposing that “The employer is authorized to introduce all changes related to the form and modalities of the provision of work. as long as these changes do not involve an unreasonable exercise of that power, nor do they alter essential modalities of the contract, nor do they cause material or moral harm to the worker.” But “when the employer provides for measures prohibited by this article, the worker will have the possibility of choosing to consider himself dismissed without cause.”
The project refers to “social benefits” as non-remunerative and detailed benefits for workers (such as food, reimbursement of medical expenses, work clothes, school supplies, daycare or training). Apply improvements in payment systemsestablishing electronic modalities and new provisions for the registration and preservation of salary receipts.
They are introduced changes in the vacation regime, allowing flexibility in granting it and the fragmentation of periods (not less than a week).
Allows the instrumentation of time bank systems, overtime and other flexible schemes through collective agreements, and the definition of rights and deadlines in cases of illness or accident, guaranteeing salary during periods of disability and regulating the medical certification procedure.
Another chapter refers to the “modernization” of the Agrarian Labor Law.
Under the title “Employment incentive”, it contemplates:
- Tax Credit Bonds for new hires, for a percentage of employer contributions. This benefit will be granted for 12 months in different proportions depending on the size of the company (micro: 100%, small: 75%, medium: 50% and large: 25%.
- The application of the bonuses will be exclusively for contracts that increase the total payroll with respect to a base period.
- Gradual suspension of social assistance plans for those entering formal employment.
- 100% bonus on employer contributions for new employees from the public sector (with exclusions for certain hierarchical positions).
Source: Ambito
