Key Provisions

• Update to Remuneration Standards: Disposition 191/2025 revises the average remuneration used to determine the legal indemnity cap in Argentina, ensuring that compensation reflects current economic conditions.
• Adjustment of Indemnity Caps: The reform modifies the maximum indemnity ceiling for affected collective agreements, aligning them with recent economic realities and providing fairer compensation for workers.
• Legal and HR Implications: Employers, legal professionals, and HR teams must adapt their calculations and policies to comply with the new regulations starting October 2025.

Summary of the Reform

Disposition 191/2025, issued by the Argentine federal authorities, introduces a significant update to the calculation of indemnity caps related to labor disputes. The policy revises the average remuneration used as the basis for determining legal indemnities, ensuring that the compensation reflects current economic conditions. This update involves recalibrating the remuneration base and adjusting the maximum indemnity ceiling for collective agreements affected by the reform. The goal is to create a more equitable and accurate framework for labor indemnities, aligning them with recent economic realities.

Effective from October 2025, this policy aims to modernize the indemnity calculation process, providing clearer guidelines for employers and employees alike. It also impacts how legal and HR departments approach collective bargaining and dispute resolution, emphasizing the importance of understanding the new remuneration benchmarks.

Who This Affects

• Employers— need to review and adjust their indemnity calculations and collective agreement provisions to incorporate the new remuneration standards.
• Employees— benefit from updated indemnity caps that better reflect current remuneration levels, ensuring fair compensation in disputes.
• Legal and HR professionals— must stay informed about the new regulations to provide accurate legal advice and ensure compliance.
• Labor unions and collective bargaining entities— should incorporate the new remuneration standards into negotiations to align with updated legal frameworks.

What Employers Should Do Now

• Review existing collective agreements to identify provisions affected by the new indemnity calculation rules.
• Update internal policies and payroll systems to reflect the revised remuneration base and indemnity caps.
• Train HR and legal teams on the implications of Disposition 191/2025 to ensure proper implementation and compliance.
• Consult with legal advisors to interpret the new regulations and incorporate them into dispute resolution procedures.
• Monitor official communications and updates from Argentine authorities regarding the implementation of the policy.
• Consider revising employee communication strategies to explain how indemnity calculations may change under the new rules.

Source

For the official text and detailed explanation of Disposition 191/2025, visit the Argentine government’s official legal portal: https://www.argentina.gob.ar/legislacion.

Media

Written by NNRoad