In brief
By Executive Order No. 865/2025, published in the official gazette on 9 December 2025, the Executive Branch convened the National Congress for extraordinary sessions between 10 and 30 December 2025 to address six legislative initiatives, including a comprehensive reform of Argentina’s labor regime.
On 11 December 2025, the Executive Branch submitted the Labor Modernization Bill to the Senate, which proposes substantial amendments to Labor Contract Law No. 20,744 and related regulations, aimed at increasing flexibility, reducing litigation, and fostering formalization and investment.
In focus
Matters included in Executive Order 865/2025
- National Administration General Budget for 2026
- Fiscal Innocence Law
- National Commitment for Fiscal and Monetary Stability
- Labor Reform (Bill submitted on 12 November 2025)
- Criminal Code Reform
- Adjustment of Minimum Standards Regime for Glacier and Periglacial Environment Protection<
Labor reform bill
On 11 December 2025, the Executive Branch submitted a bill to the Senate for a comprehensive reform of Employment Contract Law No. 20,744 and related regulations (“Bill”). If enacted, the initiative will introduce significant changes to Argentina’s labor framework, aimed at modernizing regulations, reducing litigation, and promoting formalization and investment.
Key features of the Bill
- Redefinition of the scope of the Employment Contract Law (ECL) and exclusion of special regimes.
- Clarification of employment versus independent services and limitation of the presumption of dependency.
- Organizational flexibility (ius variandi) and more adaptable contractual modalities.
- Digitalization of labor registration through the Revenue and Customs Control Agency (ARCA).
- New severance scheme and creation of the Labor Assistance Fund (FAL).
- Special regime for platform-based service providers.
- Incentives for employment regularization and tax adjustments.
Analysis of key features
- Scope of application. The Bill redefines the scope of the ECL, excluding public employees, agricultural workers, domestic staff (with exceptions), independent contractors and platform providers, unless expressly included. It reinforces legal certainty and predictability principles while preserving essential rights and recognizing equal access to professional training as a fundamental right, facilitating workforce reskilling amid technological change.
- Employment contract and relationship. The Bill modernizes the concepts of employment contracts and relationships, limiting the presumption of dependency when independence is duly documented (e.g., through contracts, invoicing, bank transfers, etc.). It redefines joint liability in intermediation and subcontracting, exempting the principal employer if documentary controls required by law are met. Liability is limited to obligations accrued during the actual service period.
- Registration and evidence. The Bill will centralize labor registration through the ARCA and digitalization will be enabled. Lack of registration creates a presumption in favor of the worker. This measure seeks to streamline procedures, ensure traceability and reduce litigation related to formal breaches.
- Organizational flexibility. Employers may modify work modalities, internal organization and methods, provided that essential rights are not affected and there is no material or moral harm. If changes result in harm, the employee may serve notice and consider themselves dismissed without cause. Digital notices and certificates are authorized, and conditions for transfers, resignations and agreements are regulated, requiring reliable means or competent authority intervention.
- Contractual modalities and compensation. Voluntary overtime is allowed in part-time contracts without exceeding the maximum workday. Severance rules for fixed-term and temporary contracts are adjusted for early termination. Regarding compensation, non-salary benefits (meals, health, childcare, education, etc.) are expanded, and payments in foreign currency and through electronic means are permitted. A general cap of 20% applies to deductions and withholdings, except as legally provided.
- Vacations and leave. Vacation splitting is permitted in minimum periods of seven days, ensuring summer leave every three years. This measure seeks to balance business needs with employees’ right to rest.
- Severance and FAL. The Bill redefines the severance calculation base, incorporating clear criteria for variable components, averaged over six months or the last year (depending on which is more favorable). The FAL will be created, mandatory for private employers, with a monthly contribution of 3% on wages subject to Argentine Integrated Pension System (SIPA) contributions. The fund will be non-seizable, exclusively for labor purposes, and intended to cover severance and termination-related obligations.
- Technology platforms. The Bill establishes a special regime for independent providers offering mobility and delivery services through platforms, eliminating the presumption of dependency. Minimum rights will be guaranteed, including clear information, training, personal accident insurance, full tip collection and complaint mechanisms on the platform.
- Incentives and tax changes. The Bill introduces a regime of incentives for labor formalization, including reduced contributions and forgiveness of debts and penalties. Adjustments to employer contributions and benefits for productive investments are also included, particularly targeting Small and Medium-sized Enterprises (SMEs).
*This document summarizes a legislative bill under discussion. Provisions will only become effective upon enactment and regulation.
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