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.
