Argentina: Executive Order No. 407/2026 Regulates Key Aspects of the Labor Modernization Law

In brief

The regulations cover provisions of the Employment Contract Law (ECL), Law No. 14,250 on collective bargaining, Law No. 23,551 on trade union associations, the agrarian regime, the regime governing temporary employment service companies, and the construction industry regime. Taken together, they further the digitalization of labor processes, reduce certain administrative burdens, regulate significant aspects relating to fringe benefits, introduce more demanding standards concerning trade union and employer representativeness, and redefine operational rules in collective bargaining and temporary hiring.

Practical impact for employers

• The adjustment of hiring, termination, and labor registration processes.
• The review of fringe benefits, compensation policies, and the documentation of non-remunerative items.
• The review of payroll receipt formats and payroll processing systems.
• The updating of absenteeism, medical control, and medical leave certificate protocols.
• The impact of the new rules on collective bargaining, union dues, and relationships with employer and trade union associations.
• The operational structure of contracts with temporary employment service companies.
• The registration processes applicable to construction personnel.

In focus

Main Changes Introduced by Executive Order No. 407/2026

1. Labor Registration and Documentary Simplification. The implementing regulations of section 52 of the ECL provide that the obligation to register the employment relationship shall be deemed satisfied upon the employee’s registration and termination in the systems authorized by the Tax Authority (ARCA). In addition, they clarify that no additional administrative requirements may be imposed and that the keeping of labor books, whether in physical or digital form, is no longer mandatory. This is one of the most significant amendments given its potential to simplify registration-related burdens.
2. Fringe Benefits and Implementing Regulations of Section 105 bis of the Employment Contract Law. The Executive Order also implements section 105 bis of the ECL and provides relevant clarifications regarding the treatment of fringe benefits. In particular, the regulations are important for reviewing compensation and benefits schemes granted by companies, as they require a more careful analysis of their design, documentation, and legal characterization to mitigate contingencies related to their possible remunerative nature and proper implementation. The grant of fringe benefits arising from stock-based incentive plans is also regulated.
3. Payroll Receipts and Greater Transparency Regarding Labor Costs. The implementing regulations of section 140 of the ECL require that payroll receipts be structured into four clearly differentiated sections and incorporate the obligation to include a summary of the total composition of labor costs borne by the employer. This requires a review of payroll receipt formats, payroll systems, and the manner in which items are presented, since the level of detail required exceeds the traditional scheme adopted by many companies.
4. Digital Medical Certificates and Control of Non-Occupational Illnesses. With respect to non-occupational illnesses, the Executive Order requires that any prescription including medical leave be issued electronically through platforms registered with the National Registry of Digital Health Platforms and by professionals licensed in the Federal Network of Health Professional Registries. Paper certificates shall be admissible only on an exceptional basis in the event of duly evidenced technical contingencies. The regulation also provides mechanisms to resolve discrepancies between the initial diagnosis and the employer’s medical examination, which will require adjustments to internal absenteeism and medical control protocols.
5. Termination by Mutual Agreement and Social Security Notifications. The regulation specifies that termination agreements by mutual consent executed before the administrative authority may be approved once their legality, the absence of defects in consent, and the proper balancing of interests have been verified. In addition, it instructs the Social Security Authority (ANSES) to implement a notification system for the commencement and completion of retirement proceedings for employers and health insurance agents, which may facilitate management in retirement cases.
6. Collective Bargaining: Employer Representativeness, Expired Collective Bargaining Agreements, and Limits on Economic Burdens. The Executive Order introduces administrative criteria to deem certain collective bargaining agreements expired for purposes of the call provided for in section 137 of Law No. 27,802, including 31 December 2026 as the reference date for agreements without an express term. It also regulates the standing of employer chambers and associations to negotiate collective bargaining agreements, establishing a minimum representativeness threshold. Lastly, it provides that statutory limits on conventional assessments, contributions, and other collectively bargained economic burdens must be computed on an aggregate basis. These definitions may require the review and possible adjustment of currently effective obligatory clauses.
7. Trade Union Associations and Union Protection. At the trade union level, the implementing regulations establish reasonable proportionality criteria between the number of officers and the number of dues-paying members, reinforce verification of membership rolls through consultation of public databases, and specify the documentation necessary to evidence membership. They also clarify the required differential threshold in cases of overlapping trade union status and regulate the operational conditions for the use of trade union leave time. In addition, they define more precisely when a trade union candidacy is enforceable against the employer and in which circumstances the judicial suspension or exclusion of union protection may be sought.
8. Regulations for Temporary Employment Service Companies. The Executive Order repeals the prior regime and approves a new comprehensive regulatory framework for temporary employment service companies. Among other matters, it redefines the circumstances under which authorization may be granted, clarifies the conditions applicable to permanent discontinuous personnel, expands and specifies the cases in which temporary personnel may be engaged, establishes a free electronic registration system, and regulates a new guarantee scheme based on UVA units and the number of workers hired. Companies operating under this modality should prioritize the review of their contractual structures, registration processes, and compliance with the new operational requirements.
9. Construction, Agrarian Regime, and Platforms. With respect to workers covered by Law No. 22,250, labor registration shall henceforth be carried out before ARCA, displacing the regime historically administered by IERIC, which shall retain a transitional and complementary role until the integrated system is implemented. In addition, the treatment of family allowances under the agrarian regime is aligned with the general regime. In parallel, the Executive Order designates the Secretariat of Transportation as the enforcement authority for the mobility and delivery platform regime, with the intervention of the Secretariat of Labor regarding any collective bargaining agreements in the sector.

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