Guide · 7. Labor and employment
Labor: current framework
Last verified: 24 Oct 2026 · Status: Changing
Version 1 summary, verified 24 Oct 2026. The full template (step by step, costs, comparison, traps) for this topic is coming in a later phase.
Key rules
The Labor Modernisation Law 27.802 was passed by Congress on 27 Feb 2026, promulgated by Decree 137/2026 and published in the Boletín Oficial on 6 Mar 2026 (issue 35.865). It applies to private employment from that date. It has 25 chapters and changes hiring rules, the severance regime and labor litigation, and adds incentives for registering workers. The article on sick leave was removed during passage. It builds on the labor chapter of the Bases Law 27.742, regulated by Decree 847/2024.
- Base framework. The Employment Contract Law 20.744 still governs individual contracts, as amended.
- Unions. Collective bargaining agreements by sector continue to set wages and conditions for most employees.
We have not yet summarised the new severance formula, the probation period or the changes to collective agreements from the text of Law 27.802. That will come in the next update. Until then, read the law itself or take local advice. Expect legal challenges to parts of the reform.