Labour laws in Argentina have evolved to strike a balance between employer flexibility and enhanced worker protections. Whether you’re an employer or an employee, understanding these changes is vital. Below are answers to frequently asked questions about Argentina’s labour law.
1. Can I Receive Services Without It Being Presumed as Employment?
Yes, in Argentina, you can hire someone for specific tasks, projects, or agency services. As long as the service provider issues invoices, it will not automatically be considered an employment relationship. This flexibility allows businesses to outsource services without creating formal employment contracts.
2. Can I Hire Someone on a Trial Basis?
Certainly. You can hire an employee on a trial basis in Argentina. The trial period can last up to six months. However, if your business has fewer than five employees, you can extend this period to 12 months. For companies with six to 100 employees, the trial period can last up to eight months. This gives employers the opportunity to assess a new hire before making a long-term commitment.
3. What If Employees Block Access to the Workplace?
Blocking or obstructing access to the workplace is a serious issue in Argentina. If an employee interferes with access, causing disruption, damaging property, or improperly retaining company assets, you can dismiss them. This behaviour affects productivity and can disrupt the work environment, so employers are entitled to take action.
4. Do I Have to Pay Fines for Unregistered Employees?
No, the fines for unregistered employees have been eliminated in Argentina. However, it is essential to ensure that your business complies with employee registration requirements. Proper documentation will help you avoid legal complications and maintain a smooth operation.
5. What Compensation Do I Pay If I Dismiss an Employee?
In the past, employers in Argentina were required to pay one month’s salary for each year of service when dismissing an employee. Now, Collective Bargaining Agreements (CBAs) may establish employer contributions to a fund, which employees can access if their contract is terminated. This approach provides a more structured and predictable method for handling employee separations.
6.Are All Collaborators Automatically Considered Employees?
Previously, all collaborators were automatically considered employees. However, in Argentina, business owners can now hire up to three collaborators as independent workers, meaning they do not have an employment relationship. This change gives businesses more flexibility when managing contractors without being tied to traditional labour laws.
7. What Happens If Dismissal Is Based on Discriminatory Reasons?
If a judge finds that an employee’s dismissal is discriminatory—based on race, gender, religion, political orientation, illness, or other protected characteristics—compensation used to be at the judge’s discretion. Now, compensation is capped at 50% of the severance pay, based on the employee’s years of service. In cases of particularly severe discrimination, the compensation can increase to 100%. This ensures that discriminatory dismissals are addressed fairly, while providing a more predictable outcome for employers.
Guidance and Compliance in Argentina
These changes to Argentina’s labour law aim to provide businesses with greater flexibility while protecting workers’ rights. To avoid legal complications, it is crucial to stay informed and ensure compliance with these regulations.
If you’re unsure how these laws affect your business in Argentina, it’s wise to seek legal guidance. Our team is here to help you navigate these modifications and ensure your business remains compliant. Contact us for tailored support!