Argentina's labour law just got its biggest overhaul in decades. Ley 27.802 came into force on 6 March 2026, and if you operate in the country, or you're thinking about it, you need to know what changed.

President Milei's reforms propose to modernise a system largely unchanged since the 1970s: lower the cost of hiring and firing, reduce litigation, and pull more workers into formal employment. Around 43% of Argentina's workforce is currently off the books. The country's risk premium has dropped sharply since Milei took office, and the IMF, which has a $20 billion programme in place, has broadly backed the agenda.

The reforms touch several areas businesses will feel directly. Below are the changes that matter most for staffing agencies, EORs, and anyone managing contingent workforce operations in Argentina.

KEY CHANGES FOR WORKFORCE BUSINESSES

Contractor liability

Clients who properly verify and monitor their contractors' registrations and social security contributions are no longer jointly liable for those contractors' obligations. That is a real change from the old regime, where due diligence made little practical difference. But the protection only works if you can demonstrate it.

The presumption of employment is gone, but that is not the same as a presumption of contractor status

There was a general presumption that a person providing services was an employee unless the company could establish otherwise. How rigidly courts applied that presumption varied, but the burden sat with the employer. Ley 27.802 goes further than simply levelling the field. Where an invoice and a service agreement exist, the presumption is removed, including for social security purposes. It does not, however, make the arrangement litigation-proof. If the underlying reality shows dependency, subordination, and the other markers of employment, courts will still find that an employment relationship exists. The paperwork strengthens the client's position at the outset, but it does not override the substance of the arrangement.

Severance costs are reduced

Annual bonuses are excluded from the calculation base. Variable-pay workers are assessed on the more favourable of a six-month or twelve-month average rather than their highest salary. For agencies managing large contingent workforces, this changes the risk profile on every assignment.

Telework laws are being repealed entirely

Three worker protections disappear in 2027: mandatory cost compensation for equipment and tools, the right to disconnection outside working hours, and the right to reverse a move to remote work. Remote work falls back to the general employment law, which was designed for in-person work and has nothing addressing these rights.

Bank of hours

Employers and employees can agree in writing to compensate longer working days with shorter ones within the same period, provided the weekly legal maximum is respected and a minimum of 12 hours' rest between shifts is maintained. The agreement must be genuinely voluntary and cannot be imposed through a collective agreement or employer policy.

THE REFORMS ARE NOW BEING CHALLENGED IN THE COURTS

Argentina's largest union federation, the CGT, called a national strike the day the bill was debated and filed a constitutional challenge the moment it passed. On 30 March, a first-instance national labour court granted an injunction temporarily suspending 82 articles of the law. The contractor safe harbour, the presumption changes, the severance reforms, the bank of hours provisions, and the telework repeal are all among the suspended articles. None of them are enforceable right now.

This is potentially heading to the Supreme Court, that could redraw significant parts of what was just passed.

WHAT EMPLOYERS SHOULD DO

The injunction creates uncertainty, but there are steps worth taking now:
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- Audit your contractor arrangements and build a documented compliance process - that protection only works if you can demonstrate it.

- Get payslips onto digital systems.

- Monitor the implementing regulations for the new severance fund, which are still outstanding.

- If you're going to adopt it, ensure that any bank of hours arrangement is genuinely voluntary and in writing, it cannot be imposed.

- And start planning for the repeal of Argentina's telework law, which kicks in on 1 January 2027 and affects how remote working costs are handled.

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