📰 Labor Reform: Milei signed the bill and sent to the Senate an initiative of 191 articles that redefines the Argentine labor system

The government presented the most extensive labor reform in decades, with changes in compensation, payment methods, working hours, unions and essential services

As soon as he returned from Oslo, President Javier Milei signed the Labor Reform project  in an office of the Jorge Newbery Airport, according to La Nación. The text, which has already entered the Senate, consists of 71 pages, 26 titles and a total of 191 articles, making it one of the most comprehensive and structural initiatives in recent years.

The Chief of Staff, Manuel Adorni, described the proposal as "the largest transformation in Argentine history in labor matters," stressing that it seeks to modernize the system, reduce litigation and promote the creation of formal employment.

✅ The central axes of the project

The most relevant points of the text are then developed, integrating the key contents of the 191 articles.

💵 1. New payment methods: salaries in dollars and virtual wallets

The bill allows employers to pay salaries in dollars, cryptocurrencies or virtual wallets, as long as there is an agreement between the parties. This point seeks to make payment methods more flexible and adapt them to the digital economy.

🛡️ 2. Optional Severance Fund in Lieu of Severance

One of the most profound changes is the creation of a Labor Severance Fund, similar to the UOCRA model, which will be able to replace traditional compensation.

• It will be optional for each collective agreement.
• The employer will contribute a percentage monthly to cover eventual dismissals.
• The stated objective is  to reduce litigation and give predictability to companies.

In addition, the bill establishes that the compensation will be lower, since they will not include Christmas bonus, vacations or prizes in their calculation.

⏱️ 3. Bank of hours and changes in the working day

The text incorporates the figure of the "bank of hours", which will allow:

• Compensate overtime with days off.
• Accumulate hours worked to reorganize the working day according to productive needs.
• Agree on flexible schemes between employer and worker.

This mechanism aims to modernise the organisation of working time.

🧑 ⚖️ 4. Labor judgments: payment in installments

Another controversial point is that labor court judgments can be paid in up to 12 monthly installments, updated by official index. The Government maintains that this will prevent bankruptcies of SMEs; Critics warn about the impact on workers.

🏥 5. Expansion of essential services

The project expands the list of essential services, which involves:

• Greater limitation of the right to strike.
• Stricter mandatory minimum guards.
• Inclusion of sectors such as education, transportation, and critical digital services.

This is one of the most extensive chapters of the project.

🧾 6. Changes in the union system

The government introduced a last-minute change: It eliminated the article that affected union solidarity dues to avoid a direct conflict with the CGT.

However, he maintained one key point:

• Membership fees will be optional.
• They will require the express consent of the worker.
• The principle of individual freedom of association is reinforced.

📘 The most important contents of the draft of 191 articles

Below is a summary of the most relevant thematic blocks of the full text:

1. Modernisation of industrial relations

• New contracting modalities.
• Regulation of teleworking and remote work.
• Seasonal, project, or demand contracts.

2. Reduction of litigation

• Changes in limitation periods.
• Limitation of fines for unregistered employment.
• Mandatory conciliation mechanisms.

3. Incentives for formalization

• Labor laundering with partial forgiveness of fines.
• Simplified registration for micro-employers.
• Tax benefits for new hires.

4. Flexibility of the working day

• Hour bank.
• Individual and collective agreements to reorganize shifts.
• Greater margin for agreed overtime.

5. Changes in licenses

• Extension of maternity and paternity leave.
• New leaves for care, adoption and workplace violence.
• Reorganization of special licenses.

6. Dismissal regime

• Optional Termination Fund.
• New compensation calculation.
• Payment in installments of judgments.

7. Essential services and the right to strike

• Expansion of sectors included.
• Mandatory minimum on-call duty.
• Penalties for non-compliance.

8. Trade union system

• Optional fees.
• Transparency in the use of funds.
• Rules for internal elections.

🧭 Conclusion

The Labor Reform bill sent to the Senate represents a structural change in the Argentine system. With 191 articles that range from the way salaries are paid to union organization, the Government seeks to install a new paradigm based on flexibility, predictability and the reduction of litigation.

The legislative discussion promises to be intense, with the support of the business sector and strong questioning from the trade union federations.

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