Argentina Enacts the Labor Modernization Law

In brief

On 27 February 2026, the Argentine Senate granted final approval to the Labor Modernization Law, adopting the measure with 42 affirmative votes, 28 negative votes, and two abstentions. 

In focus

The statute—previously approved by the House of Representatives and returned to the Senate for reconsideration following amendments—introduces structural reforms to the national labor framework, including but not limited to:

• Redefinition of the scope of the Employment Contract Law and exclusion of special regimes.
• Clarification of employment relationships versus independent services and limitation of the presumption of dependency.
• Organizational flexibility (ius variandi) and more adaptable contractual modalities.
• Digitalization of labor registration with the Revenue and Customs Control Agency (ARCA).
• New indemnification scheme and creation of the Labor Assistance Fund (FAL).
• Special regime for providers of technology platforms.
• Incentives for employment regularization.
• Scheduled repeal of certain professional statutes.

The law will enter into force upon its regulation by the Executive Branch, marking a significant shift in Argentina’s regulatory labor landscape. The reform seeks to reduce litigation risks and promote formal employment growth.