As we enter 2025, it is crucial for employers to review the numerous changes in labor laws across Latin America from 2024 and to anticipate the trends that will shape the coming year. In this blog, we provide a comprehensive overview of the key updates, reforms, and new regulations that have impacted the labor landscape in various LATAM countries in 2024, and what to expect in 2025.
2024 Recap
Argentina
- No more labor fines: Argentina removed fines for issues like defective registration and delayed severance payments.
- Easy employee registration: Electronic pay slips and digital proof of payments are now accepted.
- Subcontracting simplified: The use of third-party employees to perform company tasks is no longer considered an illegal substitution of the employer.
- Digital work certificates: Work certificates now have simplified delivery through digital means.
- Extended trial period: The probationary period for new employees has been extended from 3 to 6 months (and up to 12 months in some cases).
- Pregnancy protection: Pregnant employees can work up to 10 days before giving birth.
- Labor amnesty: A labor amnesty was introduced covering unregistered or poorly registered employment relationships.
Brazil
- Union activity: Union activity saw an increase in demands for better benefits.
- Equal pay law enforcement: The enforcement of the equal pay law became stricter, with a higher possibility of fines for non-compliance.
- Artificial intelligence: The rise of artificial intelligence in the workplace highlighted the need for new practices and policies.
- 4×3 workweek: Debates on reducing the legal workweek to a 4×3 workweek (where employees work four days a week, with three days off) gained traction.
- Increase in labor litigation: There was an increase in labor litigation, encouraged by recent court decisions.
Chile
- Work-life balance law: The work-life balance law allows employees to elect vacation time and telework under certain circumstances.
- 40-hour week law: Chile began a gradual reduction of the workweek from 45 to 40 hours, with reductions in April 2024 to 44 hours, reductions scheduled in 2026 to 42 hours, and a final reduction in 2028 to 40 hours.
- New harassment law: The new law covers labor harassment, sexual harassment, and violence at work.
Colombia
- Pension reform: A new pension reform introduced a new regime for contributions and transition rules.
- Reduction of weekly hours: The maximum working week was reduced to 46 hours. As of July 15, 2025, a new maximum working weekly schedule of 44 hours will be applicable. The final reduction will be implemented on July 15, 2026, when the workweek will be set at 42 hours.
- Sexual harassment law: A new sexual harassment law imposes new obligations for employers to prevent and address harassment.
- Maternity protection: Employers who dismiss a female employee during the breastfeeding period must prove that the reasons were not related to breastfeeding or her maternity condition.
- Labor reform: The labor reform law passed its second debate in the Chamber of Representatives and will now move to the Senate for further discussion.
Mexico
- Gender equality reform: A gender equality reform introduced constitutional changes to ensure equality and eliminate discrimination.
- Chair law: Employers must now provide chairs for workers.
- Increase in minimum wage: Progressive annual increases in the minimum wage have been implemented.
- Teleworking legislation: Mexico now has new rights and obligations for teleworkers.
Peru
- Pension system challenges: A new law addressing pension system challenges was published; regulations are pending release.
- Agricultural labor regime: A new law for the agricultural labor regime was proposed.
- Extension of paternity leave: Paternity leave time may be extended, pending approval from the Executive.
- Increase in minimum vital remuneration: In December 2024, an increase in minimum vital remuneration was approved.
Venezuela
- Foreign currency payments: Venezuela established new judicial precedents for foreign currency payments.
- Social security pensions: A new protection law for social security pensions was introduced.
- Inclusion and equality: A new organic law for the comprehensive development of people with disabilities was published to ensure that all persons with disabilities are recognized as human persons with full rights.
2025 Trends
Looking ahead, several trends are expected to shape the labor landscape in Latin America in 2025:
- Labor cost reduction: Efforts to lower labor costs through reforms in dismissal terms and severance payments.
- Freedom of contracting: Expanding contracting freedom to stimulate formal employment and reduce judicial conflicts.
- Union activity: Increased union demands for better benefits and greater enforcement of equal pay laws.
- Artificial intelligence: Anticipated legal frameworks and policies to manage AI’s impact on labor.
- Workweek reduction: Discussions on reducing the legal workweek, with some countries considering a 4-day workweek.
- Labor litigation: Expected increase in labor-related lawsuits due to recent court decisions.
- Pension law changes: New regulations and challenges to existing pension systems.
- Minimum wage increases: Annual adjustments to the minimum wage across various countries.
- Labor reforms: Anticipated changes in labor laws to adapt to new economic and social conditions.
- Harassment complaints: Increase in complaints, particularly related to sexual harassment, with more awareness and sensitivity.
- Government surveillance: Active auditing by labor ministries to ensure compliance with labor laws.
Companies will need to stay informed and agile to navigate the significant changes from 2024 and the evolving labor landscape in 2025. For more information or specific inquiries, please contact your Baker McKenzie attorney.