A new law to regulate the provisions of part-time labor contracts was approved by the Argentinean parliament on January 12, 2009. The law establishes changes in working hours and health care contributions and is expected to increase labor costs and reduce contract flexibility.
The main characteristics of the measure are as follows:
- Part-time employees are defined as those who work for two-thirds of the total hours of full-time employees or less. Their remuneration must be proportional to full-time workers in the same employment category.
- If hours worked by part-time employees exceed the limits set by their contract, they will receive remuneration equivalent to that of a full-time worker for that month.
- Health care contributions for part-time workers will be equivalent to those for full-time workers in the same employment category.
This new ruling updates previous legislation concerning part-time contracts by specifying the actions that can be taken when working hours are exceeded, and making void a previous rule that contributions to health care had to be proportional to the amount of hours worked.