Together for Change is playing hard in Congress to install a bill to eliminate severance pay. As if it were a commitment assumed before the employers’ chambers, now the radical bench in the Senate hastened the process for the treatment of a new project, which replaces the one presented by Cambiemos en Diputados and that Horacio Rodríguez Larreta will take care of disseminating at the edge of the closing of the campaign with a view to the PASO, last week. The new project, which runs through the Senate, bears the signature of Martín Lousteau and is also based on a monthly contribution from the employer to create a “national fund for termination of work”, from which the worker at the time of termination of employment employment relationship will charge an insurance equivalent to one salary per year worked. Thus, it would ignore the right to all the additional ones, those established by the labor contract law or by activity agreements. On the other hand, the Lousteau project – unlike the previous one, in Deputies – has scope over the total of workers in a dependency relationship, for new and current contracts. According to its promoters, it “improves” the one announced by Rodríguez Larreta last week.
The new project for the creation of the National Fund for Termination of Work entered the Senate on September 2. On the 6th it was turned over to the Work and Budget committees. On September 10, Senator Guadalupe Tagliaferri added her signature to the bill.
The project proposes the creation of the National Fund for Labor Cessation, “within the scope of the National Social Security Administration or the one that will replace it in the future, in order to gradually replace all compensation for termination of the employment contract provided for by Title XII of the Labor Contract Law No. 20,744 and its amendments “.
In its third article, the project assigns a supposed “solidarity character” to the Fund, but curiously it would be jointly shared by the employer with the employer himself. “The Fund will be of a solidarity nature, in which the employing party will make a monthly contribution for each worker in order to guarantee the sums of money that they must receive on the occasion of the termination of their employment relationship, replacing the employer party in your obligation, “says its text.
The Cessation of Work Fund “will be made up of a mandatory monthly contribution for each worker in charge of the employer, which will be made from the moment the employment relationship begins,” says Article 4. In the 5th, it is defined that the mandatory contribution “may not exceed 12% of gross monthly remuneration during the first year and 8% for subsequent years.”
But these percentages will be the maximum values, since “the amount of the mandatory monthly contribution and its payment date will be established by the enforcement authority based on objective and public parameters.” These parameters will be defined taking into account: a) rotation in the sector, b) the size and rotation of the employer, c) the number of workers.
Title III of the project contains the provisions regarding the Termination of the employment relationship, a chapter that probably focuses the greatest objections in terms of constitutionality, as it sweeps away the acquired and recognized rights of the worker in a dependency relationship, by this new legal body proposed by Lousteau.
In article 16, it defines that “when the employment relationship ceases, the National Fund for Termination of Work will pay the worker a sum equivalent to ONE (1) month’s salary for each year of service or a fraction greater than THREE (3) months”.
Article 26 also contemplates the possibility of “termination of the employment relationship by the employer during periods of blameworthy leave” (for example, due to accident or illness), establishing that in this case the employer “must pay the worker or the worker, remuneration and make effective the contributions destined to the National Fund for Cessation of Work, corresponding to all the time remaining for the expiration of said periods “.
Finally, it provides that the law “will be applicable to all labor relations arising from the entry into force of this law, with the exception of those regulated by Law 22,250.” But immediately (the following article) indicates that “in labor relations initiated prior to this law, the employer may voluntarily contribute the corresponding retroactive amount to the National Fund for Labor Cessation and in the manner determined by the regulations, so that the worker is covered in a timely manner for the termination of employment from the beginning of the employment relationship “, thereby incorporating them by the very fact to the new regime.