Labor Aspects of the Bill

1. Promotion of Registered Employment

1. Employers may regularize unregistered or deficiently-registered employment relationships.
2. The Executive Branch will oversee the effects of such regularization, which may include:

• Extinction of the criminal action and remission of infractions, fines, and sanctions of any nature, according to the applicable laws (Law 27430, Law 25212, and Law 11683, as amended).
• Removal of the employer from the Register of Employers with Labor Sanctions (REPSAL), provided that all the employees for whom the employer is published in the REPSAL are registered and the fine—if applicable—is paid.
• Forgiveness of debt for principal and interests on social security withholdings and contributions. The percentage of the remission will be defined by the Executive Branch and must not be less than 70%.

3. To obtain certain social security benefits (“Prestación Básica Universal” and “Prestación por Desempleo”), employees may compute as service time with contributions the months the employer regularized (up to 60 months). The contributions will be calculated on a monthly amount equivalent to the Minimum Wage in force at the time of the regularization.
4. The regularization of the labor relations must be made effective within 90 calendar days as from the effective date of the regulation of the law.
5. The regulation of the law by the Executive Branch may provide for multi-year regularization plans, foreseeing a maximum term of 5 years and a minimum annual regulation of 20% of the differences.
6. As of the date the law is published, debts that in dispute in administrative or judicial proceedings may be included in the regularization, provided that the employer unconditionally accepts and—if applicable—waives and renounces to all actions and rights, including the right of refund, assuming the payment of the legal costs and expenses.
7. The acceptance or waiver may be total or partial and will proceed at any administrative, contentious-administrative, or judicial stage or instance, as the case may be.
8. The Federal Tax Authority (AFIP) and any other social security institution  must refrain from making debt assessments and issuing infraction notices for the periods included in the regularization.

2. Suspension and replacement of the retirement mobility formula

The Bill suspends the application of the mobility and progressivity of benefits (universal basic benefit, compensatory benefit, disability retirement, death pension, additional benefit for permanence) and, instead, empowers the Executive to create an automatic formula for adjusting the benefits, being able to make periodic increases until such automatic formula is established.

3. Discounts to employees related to mutual companies

In line with the provisions of article 73 of Decree 70/2023 (amending paragraph c of article 132 of the Labor Contract Law 20744), the Bill establishes that the withholdings of the amounts of social quotas, service charges, interest payments, or any other regular payment obligation in favor of mutual companies and/or individuals or legal entities of any nature will depend on the employees' will, and it is employees that must request such withholdings.