The Argentine Senate has partially approved the labor reform project proposed by the government, marking a significant shift in labor legislation. The bill received 42 votes in favor and 30 against, showcasing a contentious political atmosphere as various party blocs requested modifications. Among the critical points of contention was the calculation and financing of severance payments, which has now garnered heightened attention due to its implications for workers' rights.

One of the primary changes introduced by the reform relates to the calculation of severance pay. Previously included components like vacation pay, bonuses, and additional earnings are now excluded from the severance pay calculations, which could potentially decrease the total severance amount for employees. Additionally, the reform imposes a salary cap on the remuneration base used for these calculations, significantly altering the financial landscape for terminated workers and raising concerns among labor unions and worker advocacy groups.

This legislative move reflects the government's approach to reforming labor laws amid economic challenges, aiming to boost employment and attract investment. However, it has sparked debate over worker protections and the balance of power between employers and employees. The implications of this reform will likely unfold as it progresses through further legislative scrutiny and its practical effects on the workforce are observed in the coming months.