Executive Order No. 407/2026 issues new regulations for Argentina’s employment laws

On June 1, 2026, Executive Order No. 407/2026 (Order) was published in Argentina’s Official Gazette, implementing regulations for various provisions of the Employment Contract Law No. 20,744 (LCT), as amended by the Labor Modernization Act No. 27,802, in addition to regulations governing collective bargaining (Law No. 14,250), trade union organizations (Law No. 23,551), temporary staffing agencies (TSA), and construction industry registration (Law No. 22,250). The Order took effect on the date of its publication.

Below, we offer a summary of the Order and highlight its key provisions.

LCT Section 52: Employment registration

The registration obligation required by the Order is fulfilled exclusively through enrollment and termination in the Customs Collection and Control Agency’s (ARCA) systems. Such registration is sufficient for all legal purposes. The obligation to maintain employment books – whether in physical or digital form – is eliminated; no administrative authority may impose additional requirements.

LCT Section 140: Pay slip

The pay slip must be structured in four clearly differentiated sections that identify: 1) data of the employer and the employee; 2) employer contributions and payroll charges; 3) gross remuneration and deductions; and 4) net remuneration. The document must include a summary of total labor cost sorted into the following categories: union fees, social security, health coverage (obra social), National Institute of Social Services for Retirees and Pensioners (INSSJP), Workers’ Compensation Insurance (ART), employer chamber contributions, and other items. Each line item must specify the computation base, unit of measurement, and resulting amount.

LCT Sections 103 bis and 105: Fringe benefits and in-kind compensation

Employer-provided meal benefits (Section 103 bis, para. (a)) must be furnished or directly funded by the employer and may not be substituted for or commuted into cash. The monthly cap is 40 percent of the prevailing Minimum Living Wage (SMVM). For in-kind compensation (Section 105, para. (b)), the applicable maximum is set at five percent of the employee's annual gross remuneration.

LCT Section 210: Illness monitoring and medical certificates

Medical prescriptions indicating rest leave must be issued electronically through platforms registered with the National Register of Electronic Prescriptions (ReNaPDiS) and signed by professionals enrolled in the Register of Health Professionals (REFEPS). Paper-based certificates with handwritten signatures are permitted only where lack of digital connectivity is demonstrated. Where an irreconcilable discrepancy exists between the initial diagnosis and the employer's medical review, the parties may resort to (a) an official medical panel in jurisdictions that have established such a mechanism or (b) an opinion from institutions registered with the Federal Registry of Healthcare Facilities (Ministry of Health Resolution No. 1,070/2009) with at least five continuous years of standing.

LCT Sections 240 and 241: Resignation and mutual termination

Concerning resignation (Section 240), the Secretariat of Labor, Employment, and Social Security (STEySS) will issue complementary regulations to implement the procedure for formalizing resignations before the labor administrative authority, including registration and verified notice to the employer. For mutual termination (Section 241), termination agreements submitted to the administrative authority may be ratified pursuant to Section 15 of the LCT, following verification of legality, absence of consent defects, and adequate accommodation of the parties' interests.

LCT Section 252: Retirement notification

The National Social Security Administration (ANSES) must implement an electronic notification system to inform both employers and agents of the National Health Insurance System of the commencement and completion of retirement proceedings, enabling timely awareness of the grant of the retirement benefit and allowing each party to make the relevant decisions regarding the employment relationship and health coverage.

Law No. 14,250 and Executive Order No. 199/88: Collective bargaining

Concerning employer representation (new Section 2), employer associations and business chambers are entitled to participate in collective bargaining provided that they demonstrate representation of at least ten percent of workers within the relevant scope. In multi-jurisdictional agreements, up to two additional employer-side representations may be admitted. Condominium-owner associations may be represented by the grouping associations to which they belong.

For obligatory clauses and the Section 9 cap (new Sections 6 and 6 bis), the concept of an obligatory clause encompasses all contributions, dues, withholdings, funds, or economic charges benefiting the signatory parties or affiliated entities, regardless of denomination. The Section 9 cap is computed globally across all charges, and the computation base is the applicable conventional basic wage for the relevant job category. Agreements currently in force that exceed the cap must be restructured; those exceeding it as of the Order's effective date will discharge the obligor up to that limit. Agreements exceeding the cap will not be ratified or registered, while contributions within the cap are mandatory only for companies affiliated with the signatory entities (pursuant to Executive Order No. 149/2025).

For the purposes of Section 137 of Law No. 27,802, collective bargaining agreements whose stated term has expired (Section 4) are deemed to have lapsed. Those lacking an express expiration date will be treated as expiring on December 31, 2026. STEySS is required to initiate the renegotiation convocation procedure within 30 days of the Order's effective date.

Law No. 23,551 and Executive Order No. 467/88: Trade union organizations

The Order mandates that the size of governing bodies must bear reasonable proportion to the number of dues-paying members. In addition to the membership register, an association may demonstrate dues-paying membership through union fee invoices, pay slips showing union dues withheld, or employer-issued certifications. The Competent Authority will cross-check the membership list against Integrated Argentinian Pension System (SIPA) records; material discrepancies will preclude satisfaction of the legal requirement.

To replace an existing registered union, the Order requires the petitioning association to exceed the incumbent's dues-paying membership by at least five percent. The administrative authority must issue a decision within 45 days. Union time-off credits must be exercised upon 48-hour advance notice in a manner compatible with the establishment's operational continuity and without affecting critical sectors; credits may not be accumulated or transferred. In addition, the protection afforded under Section 50 of the Trade Union Act is enforceable against the employer only from the moment the association formally notifies the candidacy; protection ceases upon failure to officially list the candidate or if the candidate receives fewer than five percent of valid votes cast.

An employer may seek judicial suspension of the protected employee's work activity where a potential hazard exists to persons, assets, or the effective operation of the business. Loss of coverage under the union's registration does not affect the personal protection afforded under Section 48, third paragraph of the Trade Union Act.

Annex II: Temporary staffing agencies

The Order revokes Executive Order No. 1,694/06 and enacts a new regulatory framework setting regulations for TSAs. A TSA is a legal entity whose exclusive purpose is to supply personnel to client companies for any economic activity. Under the Order, employment agreements with non-continuous workers must expressly identify the staffing modality. Workers deployed to client companies are engaged under a permanent non-continuous contract; those performing services at the TSA's own premises are engaged under a permanent continuous contract.

Gap periods between assignments may not exceed 45 consecutive calendar days (extendable to 60 by agreement) or 90 alternating days per anniversary year. An employee is not required to accept a posting located more than 30 km away from their place of residence (or 50 km away by agreement at commencement of the relationship). Minimum remuneration must be no less than the applicable statutory and/or collectively agreed minimums, nor less than the compensation paid to permanent employees of the client company in the same job category and seniority.

The Order authorizes the use of a TSA in the event of an absence of permanent staff, a statutory or collectively agreed leave or suspensions, an increase in extraordinary activity (including technology adoptions), urgent accident-prevention or repair work, and, generally, extraordinary or transient needs outside the company's ordinary course of business. In addition, the Order limits the ratio of temporary to permanent staff.

Registration for authorization to use a TSA can be made electronically and at no cost with STEySS. If there are no objections, authorization becomes effective after 15 business days. Successful registration guarantees 1) a principal guarantee of 14,000 UVA units, applicable to all TSAs; and 2) a scaled supplemental guarantee of 100 UVA units per each additional worker between 31 and 100 employees, and 75 UVA units per worker when there are more than 100 employees. The Order designates the following permitted instruments: UVA-indexed cash deposit, government securities, real property security interest, bank guarantee, or surety bond. Annual adjustments are made based on UVA value and a sworn statement of headcount.

Law No. 22,250: Construction industry registration

Enrollment, termination, and modification of employment data for construction-industry workers must be filed with ARCA pursuant to the procedures and technological means it establishes. The Order establishes ARCA’s record as the authoritative record of registration, thereby excluding the Institute of Statistics and Registry of the Construction Industry’s (IERIC) registration competence. ARCA has 120 days to adapt its systems and implement the information exchange with the IERIC; the IERIC will act as a transitional relay channel until full implementation.

Other amendments and repeals

Concerning digital-platform workers (Section 3), the Secretariat of Transport of the Ministry of Economy is designated as the Competent Authority for the Mobility and Delivery Services Regime (Title XII, Law No. 27,802), while STEySS retains jurisdiction over collective bargaining agreements in the sector.

Family allowances for agricultural workers covered by Sections 16 and 17 of the Agricultural Labor Act No. 26,727 are unified with the general framework under Section 1(a) of Law No. 24,714.

The following are repealed: Sections 9 and 12 of Executive Order No. 199/88; Sections 6, 7, 8, and 11 of Executive Order No. 301/13 (Regulation of Law No. 26,727); and Executive Order No. 1,694/06 (TSA regulations).

For more information, please contact the authors.

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