Informality is a historical feature of paid domestic labour in Latin America. The case of Argentina is of particular interest, as it showcases a substantial reform of the regulatory framework in combination with innovative mechanisms for its implementation. Using mixed‐methods analysis, this article examines some of the reasons that may explain the apparent stagnation in the rate of formalization in recent years (at around 25 per cent) and the persistent arbitrariness with which labour rights that are theoretically guaranteed by formality are granted in practice.