In brief
On 19 February 2026 the House of Representatives approved, both in general and in particular, the Labor Modernization Bill (the "Bill"), which proposes substantial changes to the Employment Contract Law No. 20,744 and other labor regulations, aimed at making the regulatory framework more flexible, reducing litigation, and promoting formal employment and investment.
Labor Modernization Bill, which proposes substantial changes to Employment Contract Law No. 20,744 and other labor regulations. The Bill aims to introduce greater flexibility, reduce litigation, and promote formalization and investment.
The House of Representatives removed from the Bill section 44, which amended the regime for leave due to non-occupational accidents and illnesses (section 208 of Law No. 20,744).
As a result of this amendment, the Bill was forwarded to the Senate. On 20 February 2026, the Senate’s Joint Committee issued a favorable opinion on the Bill with the amendment introduced by the House of Representatives, and therefore the Bill is now ready to be considered at the session scheduled for 27 February 2026.
Our Alert dated 12 February 2026 (click on this link) sets out the key points of the Bill.
In focus
The House of Representatives approved the Bill removing section 44, which amended section 208 of Law No. 20,744, concerning paid leave due to non-occupational illnesses or accidents. In the version approved by the Senate, this section provided that, in the event of non-occupational illnesses or accident, the employee would be entitled to receive, during paid leave, 50% of the remuneration earned at the time the services were interrupted if the inability to work resulted from a voluntary and conscious activity of the employee that involved a health risk, for a period of three months if the employee had no dependents legally under their care, or six months if they did. If the inability to work did not result from a voluntary and conscious activity of the employee involving a health risk, the employee would receive 75% of such remuneration, in any case for the same period mentioned above.
In light of the removal of section 44 from the Bill, the regime governing leave due to non-occupational illnesses or accidents, with respect to the payments to which employees are entitled and the maximum periods of paid leave, will remain as currently in force pursuant to the terms of section Article 208 of Law No. 20,744.
With regard to the Bill, we recall that its key points are:
- Redefinition of the scope of the ECL 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.
*This document summarizes a pending legislative bill. The provisions will enter into force only upon enactment and regulation.
Download the Spanish version of Argentina: Labor Reform Bill Approved by the House of Representatives.