Labor reform: what hiring, compensation, licenses and main changes will be like

Labor reform: what hiring, compensation, licenses and main changes will be like

The Government regulated this Thursday the labor reform, the chapter referring to the employment of the law BasesWith the implementation of the new regulations there will be changes in the world of jobwhich covers aspects such as hiring, compensation, dismissals, licenses and money laundering, among other fundamental aspects.

Let us remember that the law Bases It was approved at the end of June by the Chamber of DeputiesThe labor chapter, referred to in the text of the law as “Labor Modernization,” contains important changes in the hiring rules and in the relationship between employees and their employers.

Decree 847/2024 regulations labor reform law bases

Labor reform: these are the changes in employment matters

According to the Decree 847/2024 Published today in the Official Gazette, the main changes are:

Promotion of registered employment

Within the labor chapter are articles 76 and 81, under the title “Promotion of registered employment”, which raises a “bleach” of workers, in which the employer will have the benefit of the extinction of criminal action, the forgiveness of infractions and sanctions, removal from the Registry of Labor Sanctions (REPSAL) and the forgiveness of debts for capital and interest. In the case of the employees, Whatever their seniority and salary, “You can only have up to 5 years of contributions credited calculated on the amount of the minimum, vital and mobile salary, for the purposes of recognition for their retirement.”

The Government seeks:

  • Promote registered employment through a “whitewash” to regularize unregistered or improperly registered employment relationships whose relationship began before the law was enacted.
  • Reduce the high level of informality in our labour market.
  • Offer predictability and certainty in employment relationships.

The scope and benefits for the promotion of registered employment are:

  • Employers belonging to the private sector.
  • The waiver does not extend to employment relationships included in the Special Regime of Employment Contracts for Domestic Workers.
  • Forgiveness of at least 70% of the debt for capital and interest on employer contributions. In the case of micro, small businesses and non-profit organizations, this reaches 90%; and 80% for medium-sized businesses.
  • When the debt is with the National Health Insurance System Regime and the contributions allocated to the Occupational Risk Regime, the forgiveness is 100%.

Probation

As for the probationthe reform proposes in articles 89 and 95 that it can be extend to 6 months. In addition, by collective agreement it can be extended up to 8 months in companies with between 6 and 100 employees and up to 1 year In smaller companies (up to 5 employees), during this period, the employee may be dismissed without cause and without compensation for seniority.

As for the job simplification, In order to reduce bureaucratic processes and promote formality, the regulations establish that “the employment contract will be considered registered when the worker has been registered in the AFIP systems; regardless of who registers it,” whether it is the user company or the employer. In turn, it establishes that registration in AFIP will fulfill the requirement of the special book provided for in article 52 of Law No. 20,744.

Termination system: dismissals and compensations

The guiding principle is the freedom of the parties: by mutual agreement, without imposition by any of the parties. Only the system of agreed termination if the worker and the employer consider that the new system benefits them.

Within the framework of the collective agreement, unions and employers will be able to negotiate a system of severance pay to replace the current compensation.

It is only carried out by collective agreement, although more than one system of termination of employment may be agreed upon in an agreement.

Layoffs in Misiones.jpeg

Dismissals: what will the process of employee severance pay be like?

The system may contemplate different conditions, modalities and amounts depending on the region, type and characteristics of the company, activity or subsector.

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

Freelancer with three collaborators

A special regime created by the Bases law will apply. There may never be more than three at a time.

They must be registered in the general regime of taxes and social security resources or another corresponding regime.

They must submit a sworn statement to the AFIP regarding the independent nature of the relationship.

They are not limited to any particular sector, nor are there limits on amounts. Nor can the possibility of the worker-collaborator carrying out other activities simultaneously be limited or restricted.

Simplification of work

  • Seeks to promote formality.
  • An employment contract will be considered registered simply by being registered in the AFIP systems.

Presumption of service contracts

According to the law, it is not presumed that there is an employment contract if it involves contracting professional works or services or trades through the issuance of invoices or payment through banking systems.

It does not matter the number of invoices or receipts issued and/or the number of clients billed.

Source: Ambito

Leave a Reply

Your email address will not be published. Required fields are marked *

Latest Posts