More telecommuting and private sector involvement, but without the right to strike or independent unions. This could succinctly summarize the Law 189 Labor Code in Cuba, unanimously approved -as expected- by the National Assembly of People's Power in July.
The reform updates labor legislation for the first time in over a decade and adapts part of the legal framework to realities that already existed on the Island, such as the expansion of the private sector, remote work, and multiple jobs.
However, the text retains some of the most questioned pillars of the Cuban labor model: it still does not recognize the right to strike, preserves the union monopoly of the Central de Trabajadores de Cuba (CTC), and fails to provide real solutions to the loss of purchasing power of wages.
The new regulation replaces Law 116 of 2013, which has been in effect since 2014, and will come into force 90 days after its publication in the Official Gazette. During this period, entities must modify contracts, disciplinary regulations, and collective agreements to align with the new legal framework.
The State acknowledges an economy that has already changed
One of the most profound changes is the legal recognition of the non-state sector as a permanent part of the Cuban labor system.
The Code places micro, small, and medium-sized enterprises (mipymes), cooperatives, self-employed workers, and other authorized forms of management under the same legal framework, a decision that comes as the country already has more than 11,000 private companies established since 2021 and a sector that generates over 31% of national employment.
The legislation also officially incorporates the figure of the self-employed worker, granting them the ability to claim violations of their rights in court, while at the same time imposing tax obligations, social security duties, and regulatory compliance.
In practice, the reform moves away from viewing the private sector as a temporary exception and acknowledges an economic transformation that has been taking place for years outside of the official discourse.
Remote work, flexible hours, and digital disconnection
Among the most noticeable news is the regulation of telework, including an unprecedented figure in Cuba: the possibility of continuing to work from abroad when the employer deems it appropriate and the job characteristics allow for it.
This job continuity will require a modification of the contract and will depend on the interest of the employing entity, so it does not constitute an automatic right for those traveling outside the country.
The Code also relaxes working hours, facilitates multiple job holding, and for the first time recognizes the right to digital disconnection, prohibiting workers from being contacted outside of their working hours, during vacations, leaves, or days off, except in exceptional situations related to production or services.
Those who hold multiple jobs may work up to a maximum of 13 hours per day across all their positions.
Changes for graduates and new business obligations
The reform also reduces the mandatory social service for university graduates from three years to two and opens the possibility of fulfilling it in private entities under certain conditions.
In the non-state sector, another novelty arises: employers of micro, small, and medium enterprises, cooperatives, and private businesses will be required to hire and fund unemployment insurance for their workers, a requirement that did not previously exist.
The text also incorporates principles of equal pay for equal work, protection against workplace harassment, non-discrimination, and an expansion of benefits for parents and other caregiving relatives.
Salaries that still fall short
Despite these changes, the economic reality of the workers remains virtually unchanged.
The minimum wage will increase to 3,210 Cuban pesos per month, while the average state salary currently hovers around 6,506 pesos, a figure that is approximately equivalent to between 14 and 17 dollars on the informal exchange rate, and which remains insufficient to cover basic needs in a context marked by inflation and scarcity.
The project's own statement of reasons acknowledges a striking limitation: "the issuance of the bill has no economic consequences arising from the implementation of the proposals," an admission that highlights that the reform reorganizes labor relations but does not address the economic precariousness faced by the majority of workers.
It also does not establish mandatory mechanisms to ensure the principle of adequate remuneration to meet basic needs, as the minimum wage will continue to be centrally set by the Council of Ministers.
The power outages now have a legal response
The legislation also incorporates a legal response to an increasingly common reality in Cuba: the shutdown of workplaces due to the energy crisis.
Through Decree 149/2026, the government establishes that workers declared interrupted due to power outages or lack of fuel will receive only 60% of their salary while they remain inactive.
More than addressing the electricity crisis, the measure institutionalizes a salary reduction resulting from the deterioration of the country's own production system.
Dismissals with limited compensation
Another significant change affects the state payrolls.
The Code eliminates the concept of the available worker and authorizes entities to terminate positions for economic, technological, or structural reasons, including the permanent elimination of roles.
Those who cannot be relocated will receive a severance payment equivalent to six basic salaries, paid in a lump sum.
The very statement of reasons explicitly acknowledges that previous mechanisms for temporary relocation have been eliminated, facilitating greater flexibility to reduce personnel.
The strike remains prohibited
The most criticized aspect of the new Code is not what it incorporates, but rather what it keeps out of the text.
The law still does not recognize the right to strike, a lack that had already raised questions during the public consultation held before its approval.
It also does not provide for effective trade union freedom.
Although the document mentions collective bargaining, worker participation, and labor representation, all of these mechanisms remain subordinate to the Central de Trabajadores de Cuba (CTC), the only officially recognized trade union organization closely tied to the Communist Party.
In practice, workers still cannot freely create or join independent unions, a situation that distances the country from widely recognized international standards regarding labor rights.
The criticisms come from outside the official system
The objections do not come solely from independent analysts.
In May, the Cultural Rights Observatory reported that the right to work continues to be violated through paralegal subterfuge and accused the CTC of acting as a collaborator of the political power instead of representing the interests of the workers.
A few weeks later, the Independent Trade Union Association of Cuba presented the National Assembly with an extensive list of demands calling for trade union freedom, economic justice, and democratic reforms, without those requests being reflected in the final approved text.
A modernization with clear limits
The new Labor Code reflects an increasingly evident contradiction within the Cuban model.
While acknowledging the growth of the private sector, it regulates international telework, adopts flexible work hours, and incorporates modern concepts such as digital disconnection, it retains intact the political control mechanisms over the representation of workers.
The reform updates the functioning of the labor market, but it leaves unanswered key issues affecting millions of Cubans: insufficient wages, a lack of labor union pluralism, the legal impossibility of striking, and a constant deterioration of living conditions that the text itself acknowledges without providing effective tools to reverse it.
According to the regime, this package is part of the announced package of 176 economic and social transformations, of which 90.9% had already been approved by the date of the session.
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