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Law No. 21,431 Modifies the Labor Code Regulating the Contract of Workers of Companies of Digital Service Platforms

Law No. 21,431, published on March 11, 2022, will come into force as of September 1, 2022. This law introduces a series of amendments to the Labor Code (hereinafter "CT"), in order to regulate relations between dependent and independent digital platform workers and digital service platform companies. The following matters are regulated, among others:

Concept of digital service platform company.

Are those organizations that, for consideration, administer or manage computer or technology systems executable in mobile or fixed device applications that allow a digital platform worker to execute services for users of said system in a specific geographic territory. These services include the removal, distribution and/or distribution of goods or merchandise, minor passenger transport and others.

Platforms that are limited to publishing advertisements for the provision of services or advertisements for the sale or lease of movable or immovable property are excluded, even when the services can be contracted through the same platform.

Digital platform worker concept.

They are those that execute personal services, on their own account or on behalf of others, requested by users of an application administered or managed by a digital service platform company.

The digital platform worker is considered a dependent worker or independent worker, depending on whether or not the requirements of the individual employment contract, established in article 7 of the LC, are met.

Regulation applicable to the contracts of workers of dependent digital platforms.

These workers are governed by the general regulations of the CT, to the extent that they do not contravene the special provisions introduced by this law, such as special stipulations required for employment contracts and provisions related to remuneration and working hours, among others.

Regulation applicable to the contracts of workers of independent digital platforms.

Specific obligations are established in relation to the contracting of their services, such as, among others: i) stipulations required for their service provision contracts, ii) provisions related to the payment of fees, iii) obligation to ensure the worker a time of minimum disconnection of 12 continuous hours within a 24-hour period, iv) prohibition of making temporary disconnections of the worker or taking other sanction measures based on facts such as the rejection of the independent worker of the service offered or the non-connection to the digital platform of services in a certain period of time, v) obligation to communicate in writing the termination of the contract to the independent worker in certain cases, at least thirty days in advance, and vi) obligation to respect the constitutional guarantees of the independent worker.

Additionally, the right of the independent worker to resort to the labor protection procedure regulated by the CT is established in certain cases of violation of fundamental rights.

Common rules for dependent and independent digital platform workers.

Certain rules applicable to both types of workers are also established, such as, among others: i) duty to inform the worker of the place of performance, the identity of the service user and the means of payment to be used, ii) duty of reservation of the worker's data and their right to access their personal data and request their portability, iii) prohibition of discrimination by automated decision-making mechanisms, iv) obligation to train the worker in health and safety matters and deliver elements of personal protection, and v) obligation to take out damage insurance that insures the personal property used by the worker in the provision of the service.

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