On 12/20/2023, DNU No. 70/23 was published in the Official Gazette, which, among others, sought to eliminate fines for unregistered employment. It should be noted that said DNU is suspended by virtue of the different protections presented to the court.
Now, we understand that the purpose of the DNU was to eradicate the so-called “trial industry”, with which lawyers and workers are usually found making labor claims in court against their employers, but, on the other hand, to encourage employers to proceed to register your dependents accordingly.
In order to advance with the ideas of the current government, what is proposed is to use within the framework of Law 20,744 the statute of the “UOCRA” where it is contributed to the system so that when a worker is fired compensation is not necessary, but rather collects directly from the fund to which you have been contributing. Although this issue is not fully developed, the truth is that the idea of implementing said compensation mechanism would not be simple to apply under the different laws of national and international law that protect the rights of workers and that enjoy constitutional roots.
Following such guidelines, in my opinion the elimination of fines would not lead to the desired goal, since the State does not encourage employers to register their workers.
This, since in the first place, the Executive Branch, by repealing these fines, all it does is promote informality, that is, if an employer, being aware of the existence of fines for unregistered or partially registered work, still risks to have them under this modality, is that eliminating fines would mean the opposite result, that is, if there is an incentive to register a worker and now the fines are removed, what better opportunity to not have employees registered.
Although the issue needs further analysis, in our view, labor fines should remain in force, as employers know the consequences of having a worker without registration, but in this case the State should provide facilities or benefits to those employers who have blank workers – such as, for example, reducing social charges.
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