Javier Milei’s labor reform: the key points

Javier Milei’s labor reform: the key points

Before beginning the development of this analysis, let us make it clear that the DNU that we are going to analyze will be in full force in the Argentine Republic from midnight on December 29 of this year.

We are going to stop at the legal analysis of the Title IV WORK, but we are going to comment and analyze the articles that I consider most salient and relevant from the aforementioned DNU.

The new trial period. Now we find ourselves with a big modification. Article 71 DNU. Modifies art 92 BIS LCT, as follows:

The trial period for any dependency relationship will go from 3 months to 8 months. That is, a dependent within 8 months of his employment relationship can be separated from the company without compensation. You will only be paid for the days worked, the SAC and proportional vacations. Likewise, the advance notice is maintained, the duty to notify you not to work anymore 15 days in advance, if you do not do so, the same are paid.

Let us remember that in the 90s the notice period was 6 months and Dr. Carlos Tomado, Minister of Labor from 2003 to 2011, modified that period to the current 3 months.

A very valuable and pragmatic addition for employees. Article 72 DNU. It modifies art 142 LCT and adds that, from now on, salaries, beyond being able to be paid as until now in cash or through a bank account, can also be deposited in virtual wallets, for example, Mercado Pago.

In union matters, employees who are NOT affiliated with the union of their activity will no longer have union dues withheld from their salary receipts.

Regarding compensation, Article 81. Replaces Article 245 LCT. And here we find a labor law institute that, although it did not undergo modifications, the severance compensation remains exactly the same. We are going to see two important additions.

On the one hand, the famous Vizzoti case makes explicit, regarding the percentage of fiscal order that the court set, the confiscatory %. The famous basis for calculating compensation that cannot exceed 67% of the amount corresponding to a salary, as well illustrated to us at that time, 12/2021, the CSJN.

And the most innovative thing is that it incorporated the severance fund into article 245. Own fund from the construction activity is now incorporated into the LCT for private workers but with the proviso that it is not binding or mandatory, but rather, it makes it clear that through CCT with the permission of the worker and signature of the employer, that is, agreement of parties, may preside over the compensation of this article and go to a severance fund where accepting, obliges the employer to deposit 8% every month in an account of a private capitalization system or public bank account.

The money is deposited in a public bank account, generates interest for the worker and cannot be seized. The money is freely available.

In short, the amount of the monthly contribution is solely borne by the employer on 8% of the salary and replaces compensation.

Once the employment relationship ends, whatever the cause, the worker freely disposes of said money.

A novel point is the incorporation of the figure of independent collaborating workers. Independent workers with Collaborators:

A new category of self-employed workers is introduced who can employ up to 5 independent workers for productive ventures.

It is no small thing that, in terms of labor fines for unregistered workers, which is protected by law 24,013 and law 25,323. The latter is repealed in its entirety and the employment law, 24,013, articles 08 to 17 and 120 of said regulatory body are repealed.

Workers will have a direct and simple electronic means to immediately report when it is black.

This DNU has a long path of legitimacy, and although it comes into force on 12/29/2023, the path to the permanent bicameral commission of the Chamber of Deputies of the Nation for its review is a concrete fact for its legality.

This DNU not only redefines the rules of the game in the Argentine workplace, but also raises questions about the future direction of labor relations and their necessary modernization.

Lawyer Specialist in Labor Law. President of APREEA

Source: Ambito

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