Table of Contents

Argentina

Table of Contents

Currency

Argentine peso (ARS)

Payroll Frequency

Monthly

Employer Taxes

26.05% and Life Insurance

About Argentina

Argentina, a country located in the continent of South America, is the world’s eighth-largest country. Argentina has a population of 45.4 million people. The capital city of Argentina is Buenos Aires.

Employment Relationship

• Permanent Employment

In Argentina, an employment contract is presumed to be for an indefinite period except in the following circumstances: Tenure of the contract is specified expressly and in writing. The modalities and nature of activities justify the execution of a fixed-term contract. The work contract for an indefinite period is understood to be entered into on a trial basis during the first 3 months of implementation. 

• Fixed-Term or Specific-Purpose Contracts

The labor laws of Argentina provide that a fixed-term contract must fulfill the following requirements: It must be in writing for an agreed-upon tenure that does not exceed 5 years. The modalities and nature of activities that justify the execution of such a contract must be expressed. Continuous use of a fixed-term contract beyond the legal requirements leads to its automatic conversion to an indefinite period contract. 

• Temporary Employment Contratcs

In Argentina, an employment contract is considered as a temporary work contract when a worker performs an activity under the authority of an employer to achieve specific results. Such types of agreements are implemented when the service or requirement is extraordinary and transient, and the time of termination of the contract cannot be foreseen. Employers can also utilize temporary employment agencies to hire workers. Such workers are considered direct employees of whoever uses their benefit. Employers are jointly and severally liable with the agency for all labor obligations 

Probationary Period

In Argentina, employment contracts for an indefinite period have a trial period of 8 months. The employer may terminate the agreement during this period without justification and is not required to pay severance to the terminated employee. Employers are required to give a notice of 15 days for terminating a contract during probation.

Working Hours

The standard working hours in Argentina are limited to 8 hours per day or 48 hours per week. A workday includes periods of inactivity during the workday as per the contract. There must be a gap of 12 hours between the close of one working day and the beginning of the next. The law prohibits occupying employees after 1:00 PM on Saturday through the following day. Night work is carried out between 9:00 PM and 6:00 AM the next day and cannot last more than 7 hours. In the case of hazardous jobs, the duration of work is limited to 6 hours per day or 36 hours per week. Teleworking Working hours for teleworking employees are determined in their employment contract. They have the right not to be contacted and to disconnect from digital devices and/or information and communication technologies, outside of their working day and during leave periods. Employers must not require the person who works to perform tasks, nor send communications, by any means, outside the working day.  

Holidays / PTO

• Statutory Holidays

New Year’s Day – January 1 Carnival – February 8 and 9 Malvinas War Veterans Day – April 2 Jueves Santo – Thursday before Easter; date subject to change every year Viernes Santo – Good Friday; date subject to change every year Labor Day – May 1 Revolution Day – May 25 General Martín Miguel de Güemes Memorial Day – June 17 General Belgrano Memorial Day (Flag Day) – June 20 Independence Day – July 9 San Martín Memorial Day – August 15 (always celebrated on a Monday, even if falls on a different weekday) Columbus Day – October 10 (always celebrated on a Monday, even if falls on a different weekday) National Sovereignty Day – November 20 (always celebrated on a Monday, even if falls on a different weekday) Day of the Immaculate Conception – December 8 Christmas Day – December 25

• Paid Annual Leave

Paid annual leave in Argentina depends on the employee’s seniority, provided the employee has worked for at least half of the working days in a respective calendar year: Seniority in employment does not exceed five years – 14 consecutive days Seniority is between five to 10 years – 21 consecutive days Seniority is between 10 to 20 years – 28 consecutive days Seniority exceeds 20 years – 35 consecutive days Employees are entitled to receive remuneration for their annual leave at the beginning of their leave at the rate of their normal remuneration (set monthly or hourly). 

• Sick Leave

In Argentina, a worker has the right to sick leave with full pay for a period of up to three months per year if his or her length of service is five years or under. If the length of service exceeds five years, he or she is entitled to up to six months of sick leave. The worker is also entitled to sick leave without pay for a further period of 12 months, during which the employer is obliged to maintain the employment relationship. The remuneration in these cases is determined by the employee's pay rate at the time of the interruption of services, plus any pay increases the employee would have received under their employment contract, collective bargaining agreement or any other applicable rules. 

• Maternity Leave

The labor law grants 90 days of paid maternity leave – 45 days before childbirth and the remaining 45 days after the delivery. The employee can reduce the pre-childbirth leave to no less than 35 days and use the remaining accumulated leave post-birth.

• Paternity Leave

All male workers are entitled to two days of 100% paid paternity leave on the birth of a child, while public workers in Buenos Aires are entitled to 15 days of paid paternity leave, and an additional 30 days' paid leave during the first year of birth. Employees can also take 120 days of unpaid leave during the first year of the child's birth.  

Termination of Employment

• Notice Period

In Argentina, employment contracts can be dissolved: By the will of both parties to the contract With prior notice in writing The notice period depends on the length of service, as follows: By the employee: 15 days By the employer: 15 days for employment under 3 months 1 month for employment between 3 months and 5 years 2 months for employment exceeding 5 years The notice must be given in writing and clearly state the grounds for the termination of the contract. There are provisions for waiving off notice by paying remuneration instead.

• Severance Benefits

In Argentina, the Employment Contract Law provides for severance pay equal to 1 month's basic pay for each completed year of service (and any fraction greater than 3 months) in the event of dismissal without just cause (unfair dismissal). If an employer dismisses an employee due to a reason not attributable to a worker, i.e., economic reasons like force majeure, lack or reduction of work, the employee is entitled to half-monthly salary for each year of service. The employer must pay the employee's salary in full for the month when the termination occurs. Severance pay for fixed-term employees is usually calculated as the remaining salary that would have been paid had the employees finished the project or period for which they were hired. Furthermore, fixed-term employees with more than a year of service are entitled to 50% of the severance pay that a permanent employee would receive when dismissed if the term of employment for which the fixed-term employees were hired has been completed. If an employer fails to pay severance benefits to an employee and the employee initiates legal proceedings, then the employer will owe the employee 150% of the severance payment due. If the employer failed to pay because of a reasonable cause, the judge has the discretion to lower the increased amount.