Labor Reform: What Companies Should Do Now, According to the Marval Law Firm

With the entry into force of Law 27,802, the implementation phase has begun. It is noted that companies will need to review contracts, internal policies, and litigation strategies in light of changes in labor procedures, the mandatory nature of Supreme Court precedents, and the cost of litigation.

Marval | With the publication of the labor reform in the Official Gazette on March 6, through Law 27,802, Argentina has implemented one of the most significant changes in labor law since the enactment of the Employment Contract Law.
According to the analysis by the law firm Marval O’Farrell Mairal, a decisive stage now begins: the practical implementation of the new rules in the day-to-day operations of companies and courts.
"The question that can no longer be postponed is a simple one: what do we do now?" the firm states, warning that the reform introduces "a new order that requires review, adaptation, and concrete decisions before regulatory gaps are filled by case law or by conflict."

Judicial Process with New Rules
One of the changes with the greatest practical impact, although less discussed in the public debate, is the reformulation of the labor judicial process.
It is noted that, until now, labor lawsuits could remain open for long periods without action from the parties. The system allowed cases to remain technically active, even when no progress was made for years, while interest continued to accrue.
The reform introduces specific time limits for procedural expiration: six months in the first instance and three months in the second instance. If the case does not receive any procedural activity within these periods, the process is terminated.
According to Marval, this change "reorganizes incentives, discourages the strategy of keeping cases dormant, and requires all parties to assume a minimum level of diligence in the handling of proceedings."
In this regard, they point out that the experience of the Province of Buenos Aires—where procedural expiration in labor cases already existed—shows that it is possible to balance worker protection with processes that have a reasonable time frame.

A Reform Still Under Construction
Despite the structural scope of the reform, it is noted that key aspects still remain to be defined.
Among them are the regulation of mechanisms such as the severance fund, extended working hours schemes, and payment in foreign currency, all of which will depend on the regulations issued by the Executive Branch for their full implementation.
At the same time, judicial interpretation is expected to be decisive. "The first precautionary measures are already being filed," they warn, adding that courts will begin to establish criteria in the coming months.
In this context, they argue that the companies that adapt best will not necessarily be the largest, but those that understand that a labor reform requires concrete decisions within the organization.
These include reviewing contracts, updating internal policies, and training middle management, as well as anticipating regulatory changes. "In labor matters, reforms are not consolidated solely in the text of the law, but in the practices of companies and in the interpretation of the courts," the firm concludes. "The margin for waiting is shrinking every day."

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