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Labor Newsletter – May 2025

LABOR NEWSLETTER

REM CURRENT NEWS

New regulation authorizes the withdrawal of Compensation for Length of Service (CTS).- The main new features of Law No. 32322 are as follows:

  • Workers diagnosed with a terminal illness or cancer will be able to withdraw 100% of their CTS (deposits and accrued interest) at any time.
  • Workers are authorized, for a one-time only and until December 31, 2026, to freely dispose of 100% of their CTS.

New law for the formalization, development, and competitiveness of micro and small enterprises (MSEs).- The main new features in labor matters, compared to the previous regulation, are as follows:

  • To be included in the special regime, MSMEs must submit a sworn declaration to the Administrative Labor Authority stating that they meet the required conditions. If applicable, they must attach a copy of the Income Tax Return for the previous fiscal year.
  • MSMEs are allowed to retain the special labor regime applicable to their category for three calendar years if they exceed the sales threshold applicable to each type for two consecutive years.
  • MSMEs are allowed to return to a previous special labor regime if, after ceasing to be a special labor regime, sales decrease and the company once again falls within the applicable sales threshold.
  • A «special severance pay for dismissal of a worker to be replaced» is introduced, applicable to workers subject to the general regime who are dismissed solely to be replaced by another worker subject to a special MSME regime. This severance pay is equivalent to two monthly salaries for each year worked, plus the applicable fractions. The deadline to activate this claim is 30 days after the dismissal.
  • Pension system members with permanent total or partial disability, as previously determined by the competent authorities, are entitled to a disability pension.
  • Fines applicable to MSMEs will be reduced by 50% for small businesses and 70% for microenterprises.
  • MSMEs may be subject to educational measures rather than sanctions in certain cases.

This rule will enter into force the day after the publication of its Regulations, which should occur within a maximum of 70 days of the law’s publication (i.e., by August 5, 2025).

(Law No. 32353)

INSPECTIONS

Acting hostility confirmed by sanctioning a worker with suspension without pay, without allowing the worker to exercise his right to defense.- The Labor Supervision Tribunal (TFL) declared the appeal for review unfounded and confirmed that the inspected party committed hostile acts, considering that the company should have given the worker a specific period of time to present his defense for the alleged offenses before sanctioning him with suspensions without pay. By not having previously notified the worker of the alleged violations and by not allowing him to exercise his right to defense, the TFL considered that the inspected party had committed acts of hostility that affected the worker’s dignity and the exercise of his constitutional rights (Resolution No. 0440-2025-SUNAFIL/TFL-First Chamber).

In the case under analysis, the company’s Internal Work Regulations allowed for defenses following any disciplinary sanction imposed, and the employee did indeed file defenses following the first unpaid suspension imposed. However, the TFL alleged that the company failed to initiate a disciplinary procedure prior to imposing the sanction, which would have allowed the employee to present his defenses before the disciplinary sanction was applied, in order to guarantee due process and safeguard the right to defense and evidence.

OCCUPATIONAL SAFETY AND HEALTH

An accident during the commute to work does not automatically make the employer liable.-This was stated by the TFL in a recent resolution revoking the sanction against a company for occupational health and safety violations that allegedly caused a fatal accident (Resolution No. 0403-2025-SUNAFIL/TFL-First Chamber).

The Court held that the accident, which occurred while the worker was commuting to work, was not the employer’s responsibility, considering that the trip was carried out in a vehicle not owned by the company (an interprovincial transport company), and the specific causes of the incident had not been determined; that is, whether the accident was caused by a vehicle malfunction, driver fatigue, etc. Therefore, it would not be possible to require the employer to incorporate external events beyond its control into its hazard identification and risk assessment matrix.

MONTHLY REMINDER

SUNAFIL’s induction letters on sexual harassment.- SUNAFIL has been sending induction letters to verify compliance with obligations related to the prevention of workplace sexual harassment. Among other documents, SUNAFIL requires submission of: (i) the minutes or documents certifying the establishment of the Sexual Harassment Intervention Committee or the designation of the delegate; (ii) proof of initial training on sexual harassment since January 2025, including attendance lists, photos, etc.; and (iii) records of specialized annual training for the Human Resources department or its representative, the Committee or its representative, and all other parties involved in the investigation and sanction of sexual harassment.