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 6 months of implementation. Through collective agreements, this period is extendable to 8 months for companies with more than 6 employees, and to 1 year for those with 5 or fewer employees.
In Argentina, the law does not require written employment contracts for indefinite, full-time employment relationships, though there are some exceptions. In the case of casual employment, as well as part-time and fixed-term contracts, a written agreement is required.
While the labor law does not provide any guidance on non-compete clause in employment contracts, employers can include such clauses in the contracts. The courts in Argentina consider such clauses to be valid, provided they do not restrict employee's freedom to work.
In Argentina, an employment contract is considered a temporary work contract when an employee 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.
Seasonal employment contracts apply when an employee performs regular company activities that only take place at specific times of the year (for example, harvest or tourism seasons). The employment relationship repeats each season because of the cyclical nature of the work.
Employers may hire workers through temporary staffing agencies. In these cases, the workers are considered employees of the agency that formally registers the employment relationship, but the company using the worker’s services can still be jointly responsible for labor and social security obligations that arise during the time the employee actually worked there.
In Argentina, employment contracts for an indefinite period have a trial period of 6 months. Collective bargaining agreements may extend the probationary period as follows:
Up to 8 months in companies with 6 to 100 employees
Up to 1 year in companies with up to 5 employees.
The employer may terminate the agreement during this period without justification and is not required to pay severance to the terminated employee. No advance notice is required by either party to terminate during probation under current law.
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 1 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.
Effective March 6, 2026, Argentina introduced flexibility in how overtime is managed. Employers and employees may now voluntarily agree in writing to alternative systems for compensating overtime, instead of paying the standard overtime rate.
These arrangements may take the form of an hour bank, compensatory rest days, or other overtime compensation systems. They may also be established through collective bargaining with the union representing employees at the company. In all cases, minimum legal rest periods must be respected: at least 12 consecutive hours between shifts and 35 consecutive hours of weekly rest.
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.
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 5 years – 14 consecutive days
Seniority is between 5 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).
If an employee’s annual leave is interrupted by illness and properly reported, the employee must return on the original end date or, if still unfit, after the paid sick leave period, with any lost vacation days rescheduled.
In Argentina, an employee has the right to sick leave with full pay for a period of up to 3 months per year if their length of service is 5 years or less. If the length of service exceeds 5 years, the employee is entitled to up to 6 months of sick leave. If an employee has family dependents, their entitlement to paid sick leave is doubled. They may receive a salary for up to 6 months (if employed for 5 years or less) or 12 months (if employed for more than 5 years) while unable to work. Employees are also entitled to sick leave without pay for an additional period of 12 months, during which the employer is required 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.
Medical certificates used to justify absences due to illness or accident must include the diagnosis, treatment, and the number of days of rest prescribed, and must be issued by a licensed doctor in Argentina and digitally signed through an authorized platform. The employee must also agree to be examined by a doctor chosen by the employer to confirm the diagnosis.
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 10 days and use the remaining accumulated leave post-birth.
Employees on maternity leave are entitled to cash benefits paid from Social Security funds and financed by employer and state contributions. The benefits amount to 100% of the employee's wages for the period of maternity leave, up to 90 days. An employee must have been working with the employer continuously for 3 months or receiving unemployment benefits before the leave.
All male employees are entitled to 2 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.
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:
1 month for employment up to 5 years
2 months for employment exceeding 5 years
No notice obligation applies during the probationary period.
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.
For an employee's resignation to be valid, the employee must formally notify the employer using a telegram, either in physical or digital format, or submit the resignation through the labor authority.
In Argentina, employees dismissed without cause are entitled to severance equal to 1 month’s salary per year of service (plus any fraction over 3 months), calculated based on their highest regular monthly salary in the last year. Salary includes only monthly earnings and excludes items such as bonuses or vacation pay, while variable compensation (e.g., commissions or overtime) is averaged over the last 6 months or year, whichever is more favorable. If dismissal is due to economic reasons such as force majeure or lack of work, severance is reduced to half a month’s salary per year of service. The salary base is subject to a cap of 3 times the applicable collective bargaining agreement average, but also a minimum of at least 67% of 1 month’s salary, with total severance never falling below 1 full month. This severance (Article 245) is the only compensation applicable to dismissal without cause, except in cases involving criminal claims.
Collective bargaining agreements or employers may establish alternative severance funds to replace or finance these payments. For fixed-term contracts, severance is only owed if the contract lasts at least 1 year and ends as agreed, in which case the employee receives half a month’s salary per year of service. If terminated early without cause, the employee must be paid as if they had worked through the full term. In cases of discriminatory dismissal, courts may award an additional 50% to 100% of the standard severance.
Starting November 1, 2026, employers must contribute a percentage of payroll (1% for large companies and 2.5% for small and medium-sized enterprises) to a Labor Assistance Fund (FAL) to finance future severance obligations. These contributions offset social security payments and are not an additional cost. The fund can only be used for employees with at least 1 year of service and must accumulate for 6 months before use, but employers remain fully liable for any severance owed. Misuse of the fund can result in significant penalties. Severance must be paid within 3 to 4 business days of termination, pension coverage continues after employment ends, and certain deductions like salary advances, pension contributions, mandatory fees, housing-related payments, and insurance premiums may be taken from the employee’s final pay.
