Monday, May 20, 2024

ARGENTINA | 19-12-2023 14:37

Milei government draws up labour emergency reform package

Javier Milei is spearheading a series of measures to promote registered employment. Government is yet to define whether they will be part of a bill for Congress or urgent decree.

President Javier Milei's government will declare a “labour emergency” in the coming weeks as part of a sweeping reform package.

Government sources say the administration has yet to finalise if the series of measures it wants to enforce will be sent to Congress as part of a bill or issued as an emergency presidential decree.

Among the measures under consideration, which the government says are designed to boost registered employment, are steps to modify unemployment benefits, eliminate fines for companies and reduce employer contributions.

President Milei is spearheading the “labour emergency regulation,” which would be issued by urgent decree or introduced to Congress via a bill in  extraordinary sessions the libertarian will call in the coming weeks.


Reforms under discussion

Among the emergency labour reform measures under discussion are the elimination of sanctions or compensation for the "deficient registration" of employees, an extension of trial periods for employees (reportedly to be extended from three to eight months) and a reduction of employer contributions.

Talks are also underway over an agreement between companies and unions regarding unemployment benefits, potentially decided via collective bargaining agreement.

The government also wants to create individual accounts for worker to accumulate funds in the event of a future dismissal or retirement. According to unofficial sources, the government seeks to facilitate the creation of registered work with this measure. 

Sources added that the corporate sector is currently afraid of taking people on given existing labour rules and with flexible regulations, they will be able to offer voluntary unemployment benefits to staff.

Government sources say the Labour Secretariat, downgraded from Ministry status and assumed into the new Human Capital Ministry, will continue to mediate in collective wage-bargaining talks, but will accept agreements between parties.



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