Argentina’s Congress has just passed a labor reform bill that changes several aspects of employment regulation, what employers can demand from their employees, and how workers’ rights are protected.

The bill has been approved by both senators and deputies, although it needs to go back to the upper house for a final green-light before it becomes law.

Here’s what you need to know about the new bill.

What is the labor reform?

The bill, called “labor modernization law,” is a 100-page, 218-article text that modifies existing laws that regulate salaries, shifts, severance pay, trial periods and other aspects of work-life balance and workers’ rights. It also grants fiscal benefits for employers who register their employees.

The government has said that its main goal is to encourage employers to formally register their employees, lowering informal work, and ending what they call the “labor trial industry.” According to the Javier Milei administration, many people falsely sue past employers over alleged bad work conditions.

When will the bill start being enforced?

On February 27, the senate is expected to vote to greenlight the removal of an article made by deputies to the version that was originally approved by senators. Even if they reject that change, the bill will still become law.

After that happens, the executive power has to enact the law via a decree, and later issue the regulations that will allow it to formally enter into force. There is no scheduled time for this to happen. The government is interested in implementing the law as soon as possible, so it is likely to happen in upcoming weeks.

President Javier Milei aims for the bill to be approved before March 1, when he will give a speech to kickstart the ordinary sessions period in Congress. There, he is expected to celebrate........

© Buenos Aires Herald