Does the New Severance Fund Cut Your Payout? Law 27,802 Explained
Statutory analysis of Severance Funds authorized by Law 27,802; voluntary adoption via collective bargaining leaves traditional Article 245 intact elsewhere.
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Essential Legal Distinctions
- Voluntary Collective Adoption: Only applies if explicitly ratified by your industry union.
- Traditional Severance Protected: Article 245 remains fully binding across non-adopting sectors.
- Pure Contingency Fees: We get paid only upon successful financial recovery.
1. Collective Bargaining Severance Fund Mechanics
Laws 27,802 and 27,742 authorize collective bargaining parties to substitute traditional Article 245 severance with an industry-specific Severance Fund.
Adoption requires explicit union collective agreement approval. For all employment sectors where no approved collective fund exists, traditional Article 245 severance remains fully mandatory.
Frequently Asked Questions
Does the reform eliminate Article 245 severance nationwide?
No. Severance funds operate exclusively in industries that collectively adopt them.
Who funds the severance account?
Employers make mandatory monthly percentage deposits based on gross wages.
What if an employer applies the fund without union approval?
The deduction is null and void, entitling workers to full traditional Article 245 severance.