Four months after the start of the reduction to 40 hours, doubts persist in the private sector

Jan 4, 2024

Our partner Jorge Arredondo talked to Diario Financiero about the main concerns of the private sector regarding the 40-hour law.

On April 26, the reduction of the working day from 45 to 44 hours per week will come into effect, and although the government has made every effort to explain its scope, doubts persist within the private sector. These, in fact, have been growing while waiting for the Labor Directorate to publish the respective interpretative opinion or opinions.

In order to assess the implications, the Confederation of Production and Commerce (CPC) made a survey on the main practical problems that companies would have.

Workers without working hours

The first issue of interest relates to workers who are excluded from the maximum limit of ordinary working hours. That is to say, those who do not work a normal working day.

Here the CPC’s concern is that the Law restricts the group of people who can work “without working hours” to administrators, attorneys-in-fact with administrative powers and all those who work without immediate superior supervision.

Variable remunerations

Another issue that generates doubts is what could happen with variable remunerations, which could decrease due to fewer sales hours. “It is important that this objective be achieved without affecting the productivity of the companies”, states the minutes of the multi-union.

Compensation of hours

The new mechanism that allows the payment of overtime for additional holidays is another issue. For the private sector, it is important to know whether or not, if the employee does not use the holiday, overtime will have to be paid and on what date, as well as the surcharge assigned to it.

Time bands

In the adaptability rules, the law included the figure of time bands: a format that allows workers who are mothers or fathers of children to anticipate or delay the start of their daily workday. Employers cannot refuse this measure, unless the company operates on a schedule that does not allow to anticipate or postpone the working day, or due to the nature of the services provided by the worker. For example, a guard.

In this regard, for the CPC it is important that the TD can clarify which functions would be excluded from the possibility of using this measure.

Average working hours

The possibility of reaching an agreement with the unions so that the parties can distribute the working day based on a weekly average of 40 hours in a cycle of up to four weeks, is another area of concern.

The reason? The Labor Relations System of the Labor Directorate (Sirela) does not have updated information on whether a union is active or in recess.

Collation

The lunch break is another concern, since the Law established that in those cases in which the time is imputable to the working day, the parties must, by mutual agreement, carry out the adjustment to the new working day.

“A problem may arise in the event of not reaching a collective or individual agreement with the worker, since – if it continues to be imputed – there would be companies that would go from 45 hours a week to 35 hours a week of real work, which is an important and abrupt impact”, questions the CPC.

The concern

“Having been the law published several months ago, one would expect that these pronouncements would have been during 2023 or if not, at the latest in January”, says the partner of the labor group Albagli Zaliasnik, Jorge Arredondo.

In his opinion, it is key that the interpretation of the TD is known, since in addition to the reduction of working hours, the Law includes changes that “companies will have to adopt, and generate conversations with their workers and union organizations to reach agreements”, he says.

Source: Diario Financiero January 03, 2024.

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