Spain and Argentina push major labor law reforms

Spain's Ministry of Labour is drafting a reform that would raise severance pay for unlawful dismissals in small firms and for self‑employed workers. The proposal could increase indemnities above the current 33 days per year of service and restore lost wages during the legal process, which employers say would raise costs for micro‑enterprises and freelancers. Business groups warn the changes could deter hiring, while trade unions argue the current protection is insufficient.

In Argentina, the government has begun enforcing the new Labour Modernisation Law (Law 27.802) by formally notifying employers to renegotiate 150 collective bargaining agreements that have expired. The decree aims to replace outdated sector‑wide contracts with company‑or regional‑level agreements and introduce a "dynamic salary" model that ties pay to productivity. Unions see the move as a way to undermine their financing and weaken collective bargaining, while officials claim it will modernise the labour market and promote formal employment.