In a late-night session, the Argentine Senate approved the Labor Reform bill with a vote of 42 in favor and 30 against. This reform introduces a new calculation method for severance pay, which notably excludes various forms of compensation such as bonuses and vacation pay, ultimately leading to reduced payouts for dismissed employees. The reform aims to adjust the existing labor landscape and alleviate financial strain on businesses while reshaping employee rights in Argentina.

Additionally, the new legislation allows companies to pay severance debts in installments, the larger enterprises can spread payments over up to six months, while small and medium enterprises (SMEs) are granted a longer timeframe of up to a year. Furthermore, a Labor Assistance Fund (FAL) is established, funded by a portion of social security retention, which seeks to ensure that workers receive their due compensations despite varying economic circumstances, thus promoting job stability.

The transition from the Senate to the Chamber of Deputies will determine the reform's final shape, particularly with respect to the contentious sections that were omitted. Observers are concerned about the long-term implications of these changes on employment contracts and the broader Argentine labor economy, as critics argue that such modifications may favor employers significantly at the expense of workers' rights.