Law No. 20,940 That Modernizes Labor Relations

On September 8th, 2016, Law No. 20,940 was published. The law is aimed at the "Modernization of Labor Relations" (hereinafter the "Labor Reform" or the "Law"). The aim of the Labor Reform is to develop labor relations that are more modern, fair and balanced between the parties, and promote dialogue and agreement. In general terms, to meet these objectives the Law increases the bargaining power of unions and introduces important amendments in collective bargaining regulations to improve the employees' position vis a vis the employer.

Among the many amendments introduced by the 90 page Law we would like to highlight the following:

1. Extension of the right to collective bargaining: The Law gives the following classes of employees the right to bargain collectively, all of which were previously subject to be banned from collective bargaining:
   • Employees subject to employment contracts for a specific piece of work or task.