Labour Modernisation Act (Law 27,802)

Update a labour system that, according to the government, pushed millions of Argentines out of formal employment for decades, reduce labour litigation and restore predictability to the labour market, in order to create genuine and registered employment.[14][13]

according to the Office of the President (Official Communiqué No. 132, 12 February 2026) and the reporting senators in the Senate debate

• Severance pay (Employment Contract Law, art. 245 as replaced by art. 51): one month’s pay per year of service, calculated on the best monthly, normal and habitual pay, excluding non-monthly items such as the 13th-month bonus and holiday pay; ceiling of three times the average pay of the applicable collective agreement, which may not reduce the base below 67%; a collective agreement may replace this scheme with a termination fund paid by the employer.[1]
• Labour Assistance Funds (FAL, Title II): each private employer pays a monthly contribution of 1% (large companies) or 2.5% (micro, small and medium enterprises) of pay into a separate account, used only to help pay severance and other termination payments of workers registered for at least 12 months; employer social security contributions are cut by an equivalent amount.[1]
• Working time (arts. 42 and 43): employer and worker may agree in writing on a voluntary scheme to compensate overtime (overtime, hour bank, compensatory days off); collective agreements may average the maximum working time, provided 12 hours of rest between working days and 35 hours of weekly rest are respected.[1]
• Collective disputes (art. 101, amending art. 24 of Law 25,877): a minimum service of 75% of normal provision in essential services (including education up to secondary level, health, energy, telecommunications, waste collection, air and port transport) and of 50% in activities of « transcendental importance ».[1]
• Collective agreements (art. 131): once an agreement has expired, only the clauses on individual working conditions and benefits remain until a new agreement; the other (obligational) clauses survive only if the parties agree.[1]
• Formalisation incentive (RIFL, Title XX): for eligible new hires (no registered job on 10 December 2025, unemployed for six months, previously self-employed under the simplified regime, or coming from the public sector), employer contributions are reduced to 2% (pensions, employment fund, family allowances) and 3% (retirees’ health institute) for 48 months.[1][4]
• Regularisation of undeclared work (PER, Title XXII): employers may register private-sector employment relationships begun up to promulgation, with possible extinction of criminal action and waiver of fines and of debts on unpaid contributions, as regulated by the executive.[1][7]
• Other titles: a single employee registration with ARCA (art. 155), a regime for delivery and passenger-transport platform providers that ensures their independence (Title XII), approval of the transfer of national labour courts to the City of Buenos Aires (Title III and annex), and tax measures including a medium-investment incentive scheme (RIMI, Title XXIII).[1]