La Derecha Diario The Government enables a new compensation model through agreements
The framework seeks predictability and reduced litigation for employment terminations
The national government, through the National Securities Commission (CNV), regulated the implementation of a new optional system to cover costs arising from employment termination, within the framework established by the Ley Bases. The measure, formalized through General Resolution 847/2024, enables employers and unions to establish, through collective bargaining agreements, an alternative scheme to traditional severance pay, inspired by the model currently in force in the construction industry.
Far from eliminating the seniority-based severance pay established in the Employment Contract Law No. 20,744, this initiative creates an additional option: the establishment of a termination fund financed with monthly contributions during the employment relationship, which is then transferred to the employee.
Voluntary application and through collective bargaining
One of the key points of the new scheme is its optional nature. It won't be mandatory for any company or sector, and its implementation will depend exclusively on collective bargaining. According to the official text, the parties may agree to fully or partially replace current severance payments, always with mutual agreement and approval.
"This is a tool that must arise from social consensus and not from imposition," CNV representatives stated.
How the termination fund works
During the employment relationship, the employer makes monthly contributions to the termination fund, which may be set as a percentage of the salary or a fixed amount. Meanwhile, employees may make voluntary contributions if the agreement so provides. Once the employment relationship ends, the accumulated capital is transferred to the employee, who may use those funds without restrictions.
Financial vehicles and management
The system may operate through closed-end Mutual Funds or Financial Trusts, both regulated and exclusively aimed at the purpose of employment termination. Managing entities must comply with strict transparency criteria and periodic reporting to ensure the protection of savings.
The established fund will have separate assets, will be immune from seizure as long as it remains in the system, and the transferred amounts will be considered as full settlement, meaning they will extinguish the severance obligations they replace.
Repercussions and outlook
Various union sources expressed reservations about this modality. While some unions consider it an alternative to preserve jobs in sectors with high turnover, others warned that it could erode acquired rights. Implementation will depend on the willingness of each sector.
The scheme also includes a simplified regime to facilitate its adoption, especially in activities that don't usually operate in the financial market. According to the CNV, the objective is to create a safe and predictable savings mechanism that reduces litigation while protecting the employee's purchasing power.
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