Argentina has approved regulations governing Labor Assistance Funds (FALs), a new mechanism designed to help private-sector employers manage severance payment obligations. Effective November 1, 2026, employers may contribute to authorized investment vehicles that fund severance payments for registered employees. Contributions will be integrated into social security reporting and may be tax-deductible. Additional implementing guidance is expected within 45 business days.
Implication: Employers should review payroll, severance, tax, and employee registration processes before the new regime takes effect.