Law 25.871 and Decree 616/10 establish the regulatory framework for foreigners who wish to enter, reside, stay or settle in Argentina. Likewise, Argentina ratifies the International Convention on the Protection of the Rights of All Migrant Workers and Members of Their Families of the United Nations, Convention No. 97 on Migrant Workers (Revised) of 1949 and Convention No. 143 on Migrant Workers (Supplementary Provisions) of 1975. It is also party to a number of bilateral and multilateral agreements aimed at: avoiding double contribution; aggregation of contribution periods; and transfer of pension benefits.
The envisaged figure is that of "Migrant workerforeigners who are regular residents and those who enter the country to engage in the exercise of a licit, remunerated activity, with authorisation to remain in the country for a maximum of three (3) years, extendable, with multiple entries and exits, with permission to work under a relationship of dependency.
With regard to the various types of residentsare:
- Permanent residents: they may carry out any remunerated or lucrative task or activity, on their own account or in a dependent relationship, enjoying the protection of the laws governing the matter.
- Temporary residents: they may carry out these activities only during the period of their authorised stay.
- Temporary residents (including precarious residence): They may not engage in paid or gainful employment, whether on a self-employed or dependent basis, with the exception of those included in the subcategory of "seasonal migrant workers".
In all cases, the migrant worker has the same labour rights and guarantees as those corresponding to an Argentinean resident. A prior employment contract is required. And migrant workers must have the proper documentation to reside and work legally in the country.
Requirements for accrediting the status of migrant worker:
- Pre-employment contract signed by the parties, specifying personal details, tasks to be performed, working hours, place of work, remuneration, employer's CUIT and type of contract, all with a certified signature.
- Proof of the employer's registration with what is now the Agencia de Recaudación y Control Aduanero (ARCA).
- Proof of registration of the employer in the Registro Único de Requirentes de Extranjeros of the Dirección Nacional de Migraciones.
- Early discharge certificate,
The migration law infringements In labour matters, fines amounting to fifty (50) Minimum Vital and Mobile Wages for each foreigner, lacking migratory authorisation to work, to whom paid work or occupation is provided, and may be increased to one hundred (100) Minimum Vital and Mobile Wages when paid work or occupation is provided to unemancipated foreigners or minors under fourteen (14) years of age. In all cases, recidivism is punishable and it is up to the National Direction of Migration to reduce the sanction.
CONTRACTUAL MODALITIES:
In the Argentine Republic, the employment contract is regulated by the Employment Contract Law, which subsumes the employment relationships developed in a relationship of dependence. The Employment Contract Law regulates the following contractual modalities:
- Employment contract for an indefinite period of time:
Description: the law determines that it is the normal and main contract of any employment relationship. The other contractual modalities typified in the law will always be exceptional to this rule.
Its main characteristic is its duration, since the natural and proper termination of this relationship occurs when the worker retires.
Extinction: However, this contract can be terminated early in other ways, e.g. resignation, dismissal for cause, dismissal without cause, etc.
Compensation: Unjustified or wrongful termination by the employer gives rise to compensation rights in favour of the employee.
Other features:
InformalIt is perfected with the simple registration of the employment relationship, registering the date of entry, salary, working day and employment category, given that the terms and conditions are regulated by law. In this sense, a written contract is not necessary for its existence.
Held on a probationary basis for the first six (6) monthsThe employment contract is understood to be concluded on a probationary basis during this period, where the employer may terminate the contract without the obligation to pay severance pay and notice.
Successive or periodic provisionThe employment contract is executed in accordance with the agreed working hours, usually limited to 48 hours a week from Monday to Saturday, without exceeding 9 hours a day.
Paid on a monthly or daily basis.
- Fixed-term contract:
Description: This exceptional contract must be concluded in writing and also requires that the contract: (i) state the duration (which cannot be longer than five years); and (ii) state the reasons justifying the use of this contract.
In addition, when the term is longer than one month, the law requires 30 days' notice before the expiry of the term.
Extinction: The termination of the employment relationship occurs on expiry of the term of the contract (provided that notice has been given). If the term of the contract exceeds one year, the employee is entitled to receive 50% of the length of service indemnity.
Compensation: Termination before the expiry of the term entails, in addition to the indemnities derived from the dismissal, the payment of the lost wages that the worker did not receive for the entire remaining period of the contract and compensation for the damages caused.
Conversion: Failure to comply with any of the conditions transforms this contract into a contract of indefinite duration.
- Temporary contract:
DescriptionTemporary contract: This contract is intended to provide exceptional and temporary cover for a specific need, the duration of which cannot be determined due to its nature. Although it is a requirement not to stipulate a termination period, in cases where the need is based on extraordinary market requirements, in no case may the temporary contract exceed six months.
It must be in writing and also requires that the reasons justifying the use of this contract be set out in the contract.
The rule allows for contracting directly with the worker or through a temporary services company.
ExtinctionTermination occurs as of right when the need for the contract is exhausted.
Compensation: No advance notice is required and no entitlement to compensation arises.
Conversion: Failure to comply with any of the conditions transforms this contract into a contract of indefinite duration.
- Seasonal contract:
Description: This type of contract is foreseen when the worker's work is to be carried out at certain times of the year only and is subject to be repeated in cycles due to the nature of the activity.
The duration of the contract is indefinite until one of the parties decides to terminate it.
Compensation: Unjustified or wrongful termination of the employment relationship gives rise to compensation claims.
- Telework:
Description: It regulates employment relationships whether they are for an indefinite term, fixed-term, temporary or any other type of employment relationship where all or part of the work is performed in the worker's home or in places other than the employer's establishment, and provided that communication and information technologies are used.
It is a contract that must be concluded in writing and requires the recognition of increased expenses incurred by the employee in the performance of the work.
WORKING DAY
All matters concerning working hours in the Argentine Republic are regulated by the Labour Contract Law; Working Hours Law 11.544 and its regulation by means of Decree 16.115.
In terms of its determination, the extent of this is uniform for the whole nationthat is, 8 hours per day (although up to 9 hours per day is allowed) o 48 hours per week. This is a maximum limit, and there may be days with a shorter duration.
There shall be a break of not less than twelve (12) hours between the end of one working day and the beginning of the next for reasons of health and safety at work.
The night work cannot last more than 7 hours and must be completed between 9 p.m. and 6 a.m.. In this case, the hours worked must be paid at the rate of 1 hour and 8 minutes.
In the event that the tasks or working conditions are declared to be unhealthfulThe length of the working day may not exceed 6 hours a day or 36 hours a week.
The law does not apply to agricultural and domestic workers.because they have their own working time arrangements.
Also, the various collective bargaining agreements may provide for regimes to accommodate changes in production patternsThe minimum rest period between each working day must be respected. Likewise, with the latest reform implemented through DNU 70/23, overtime, banked hours and compensatory time off may be arranged collectively.
The overtime work shall be paid with a 50% surcharge for ordinary days and with a 100% surcharge for work on public holidays, Saturdays after 1 p.m. or Sundays.
LABOUR COSTS. WAGE:
The regulation of wages in Argentina is established by the Employment Contract Law and is defined as the consideration to be received by the worker as a consequence of the employment contract.
Wage Composition
Remuneration may consist of a sum of money or part in money and up to 20% of the total amount in kind, room or board.
The amount due as remuneration shall be equal to the value determined by the wage scale of the Collective Bargaining Agreement applicable to the activity or enterprise.
The salary consists of:
- Basic wage: remuneration fixed per unit of time or work.
- Wage supplements: set according to circumstances relating to the worker's personal conditions, the work performed or the company's situation and results. These are the additional wages paid to the worker for various reasons, such as: seniority; overtime; night work; work on public holidays; bonuses for productivity or performance.
- Contributions and Deductions: These are the amounts deducted from the gross salary to finance the following items: pension contributions (retirement and pension); social security contributions; compulsory life insurance contributions; income tax (if applicable).
Other items may also be added such as:
- Per diem: Paid for work-related travel or relocation expenses.
- Representation expenses: These are paid for expenses related to the representation of the company.
In addition, the salary can be made up of variable items, among which may be found:
- Bonuses: May be paid for specific services, such as overtime, night work, etc.
- Commissions: Paid for specific achievements, such as sales or production.
- Awards: Paid for exceptional achievements or for meeting specific targets.
- Retention bonuses: amount of salaries paid on a deferred basis, to the extent that the person stays with the organisation.
- Stock Options / Golden Parachutes: this type of special variable remuneration is, or may be, generally given to senior management employees.
The salary can be agreed by:
- Collective bargaining agreement: establishes the basic salary and salary supplements for a given category or position.
- Individual employment contract: can agree on a higher salary than that established in the collective bargaining agreement.
- The minimum living and mobile wage established by the National Council for Employment, Productivity and Minimum Living and Mobile Wage is the absolute minimum that all workers must receive.
Wage Negotiation in Argentina
Wage bargaining in Argentina is a complex process involving employers, employees and trade unions.
In this respect, there is the Minimum, vital and mobile wage (SMVM), which is the minimum wage set by the state, periodically adjusted for inflation and the consumer price index (CPI).
As far as the public sector employeesThe minimum wage is set by the state and adjusted periodically.
For the private sector employeesWages are established in collective bargaining agreements and paritaria, and vary according to sector and company. Thus, through collective bargaining agreements, employers and trade unions in each activity establish working conditions, including wages, for the specific sector. bargainingThe negotiations, also between the same parties, negotiate wage increases and labour improvements.
Bargaining negotiations usually take place on a regular basis, as often as the parties agree, in order to make the adjustments they deem relevant due to the country's inflation indices. There, agreements are reached to determine wage adjustments according to labour categories and seniority. Usually, percentage increases are applied on the basic salary.
The Collective Bargaining Agreement is the instrument that establishes the working conditions and remuneration for workers in a given activity or company. In some collective agreements and bargaining agreements, they are applied as a fixed amount on the basic salary, and may be remunerative or non-remunerative, which implies the contribution or not of contributions to the Social Security and Social Work System.
In addition, bonuses and "extra" allowances can be established through bargaining agreements as a way to improve or maintain workers' wages unharmed.
In wage bargaining, factors such as productivity, inflation and the economic situation of the country are considered.
ANNUAL LEAVE AND SPECIAL LEAVE
The Employment Contract Act provides for ordinary (paid) holiday leave on the following basis:
- 14 calendar days when the length of service does not exceed five years;
- 21 calendar days when the length of service is more than five years and does not exceed ten years;
- 28 calendar days when the length of service is not more than twenty years but more than ten years;
- 35 calendar days when seniority exceeds twenty years
In order to enjoy the holiday period on the basis of the described scale, the employee must have worked at least half of the number of working days in the calendar year. If this requirement is not met, the employee is entitled to one day of holiday every 20 days of actual work.
Leave must be granted between 30 October of the current year and 1 April of the following year.
The amount of holiday pay is determined by dividing the gross salary by 25 and multiplying the resulting amount by the number of days of holiday. In the case of variable remuneration, the average of the last six months or year (at the employee's choice) shall be taken into account.
In addition, the Employment Contract Act provides for a number of special leaves of absence:
- Birth
- Marriage
- Death of a spouse, partner, parent, child or sibling
- For high school or university exams
These special leaves may be extended in terms of the number of days and cases covered by the collective bargaining agreement applicable to the activity or company.
TELEWORK
The telework regime in Argentina is regulated by Law 27.555, enacted in 2020.
Among the relevant provisions of the new contracting modality, which, although it had been developing, had its explosion after the Covid 19 pandemic, are the following:
- Telework must be agreed between the employer and the employee, and must be formalised in writing.
- Employees working under telework have the same rights and obligations as employees working physically on the employer's premises.
- The working hours of the teleworker must be established in the agreement between the parties, and may not exceed 8 hours per day or 48 hours per week.
- Teleworkers are entitled to breaks and rest periods, which should be set out in the agreement between the parties.
- Employers must ensure the occupational safety and health of teleworkers, and must provide them with the necessary equipment and tools to carry out their work safely.
- Teleworkers must maintain confidentiality and protect company and customer data.
- Employers can establish control and monitoring mechanisms to ensure that teleworkers comply with their work obligations.
PROTOCOLS / PREVENTION OF HARASSMENT / BULLYING IN THE WORKPLACE
In the matter of abuse, harassment, harassment at work, our Employment Contract Law establishes that the The employer has the obligation to prevent and eradicate workplace violence in order to safeguard the fundamental rights of workers and to protect them against all forms of mistreatment, harassment, abuse and discrimination at work.
Furthermore, this problem in the labour sphere has been set out in various international conventions and treaties, which Argentina has ratified.
Thus, when faced with a complaint of workplace violence, it is advisable:
- To investigate the complainant (alleged victim) and also the accused employee, regardless of his or her hierarchy.
- In this way, summary proceedings can be conducted, if necessary, with the assistance of witnesses etc.
- Separate the subject that provokes them, bearing in mind that liability is placed on the employer mainly for omissions in preventing these events once they are known.
It is important to demonstrate proactive behaviour in order to clarify the alleged facts and to determine whether the accused is responsible for them, and then to take the appropriate measures according to their seriousness: disciplinary sanction or dismissal.
Prevent the employer from abusing the following powers: organisational, managerial, supervisory, regulatory, power to alter the terms of the contract (ius variandi), disciplinary power.
OCCUPATIONAL ACCIDENTS SCHEME. HEALTH AND SAFETY. MEDICAL INSURANCE.
Accidents at work and occupational diseases are contingencies covered by private entities called Aseguradoras de Riesgos del Trabajo.
They are regulated by the Occupational Risks Act, which establishes the legal framework for preventing occupational risks and repairing damage caused by occupational accidents and diseases.
An accident at work is considered to be any sudden and violent event occurring by reason of or in connection with work. Accidents occurring on the way to and from the place of work are included in this concept.
Occupational diseases are considered to be those included in the list regulated by the law on occupational hazards.
The financing of the occupational hazards regime is assumed by the employer through the payment of a fixed amount (the same for all activities) and a percentage of the worker's salary (ranging from 1.5% to 8% depending on the degree of danger of the company's activity).
The claims process for this type of contingency is largely administrative.
Compensation for accidents at work or occupational diseases is calculated on the basis of a formula that takes into account the age of the worker, the percentage of incapacity and the worker's salary. There are minimum floors established by law according to the percentage of incapacity.
The Occupational Health and Safety Act (Act 19.587) is in force in our country to protect employees from occupational hazards and to ensure a healthy working environment.
In turn, the Social Work Law (Law 23.660) regulates the creation and functioning of the social works in Argentina, which provide health services to affiliated workers. Medical coverage may vary according to the social work and the health plan chosen.
Health insurance is compulsory and must be taken out by the employer to cover the medical and hospital expenses of the insured worker.
It is important to mention that legislation and requirements may vary depending on the province or municipality in which you are located.
TERMINATION OF EMPLOYMENT TERMINATION OF EMPLOYMENT COMPENSATION SCHEME
The causes that can terminate the employment relationship in the Argentine Republic are:
- Employee resignationwhich is formalised by means of a tailed telegram.. In this case, the employee must give 15 days' notice, although it is not compulsory for the employee.
- By mutual agreement between employee and employerThe agreement must be formalised by both parties only before a competent judicial or administrative authority.
- By Just CauseThe offence must constitute an insult which, due to its seriousness, does not allow the continuation of the employment relationship.
- For abandonment of work by the workerIn this case, the employer must previously and formally summon the worker to report to work within two days, under penalty of considering the relationship terminated due to abandonment of work.
- In the event of the death of the workerIn this case, the successors in title are entitled to an indemnity of 50% of that provided for in the case of severance pay.
- For permanent and definitive incapacity.
- For the death of your employerIn such a case, the employee is entitled to compensation of 50% of that provided for in the case of severance pay.
- Dismissal without cause or justification
Our legal system determines, in the case of dismissal, that the employer must pay the worker certain mandatory items, namely:
Seniority indemnity: equivalent to one month's salary for each year of seniority of the worker or fraction greater than three months. The BEST monthly, normal and customary gross remuneration earned during the last year or time of service, whichever is less, must be taken.
It should be noted that the severance payment for seniority can be reduced by 50% if the dismissal was due to force majeure or lack or reduction of work (Article 247 of the Employment Contract Law).
A minimum length of service of THREE MONTHS AND ONE DAY is required for the payment of this indemnity. Dismissal within the probationary period (today, within the first six months) does not entitle the employee to any severance pay.
Compensation in lieu of notice: The employment contract may not be dissolved at the will of one of the parties, without prior notice, or, failing this, compensation when the contract is dissolved at the will of the employer; being one month's salary, when the worker has been in employment for a period not exceeding five years, and two months' salary when this is longer.
Integration of the month of dismissalThis item shall be paid when the dismissal does not take place on the last working day of the month. The integration of the month of dismissal does not apply when the termination occurs during the probationary period.
Annual Proportional Supplementary Wages: This is a supplementary remuneration, equivalent to one twelfth of the remuneration earned in the part of the six-month period worked up to the time of leaving the service, calculated on the basis of the BEST monthly remuneration for that period, paid in the six-month periods ending in June and December of each year.
Proportional holidays. On termination of the employment contract, the employer must pay the employee an indemnity equal to the corresponding salary, depending on the length of service. A worker with less than 5 years' seniority: 14 days' holiday entitlement. A worker with 5 to 10 years' seniority: 21 days' holiday entitlement. Workers with 10 to 20 years' seniority: 28 days' holiday entitlement and workers with more than 20 years' seniority: 35 days' holiday entitlement.
For certain special cases, the contingency is greater, aggravating the amount of compensation, when the dismissal is due to the causes indicated below:
Dismissal due to maternity or pregnancy: There is a legal presumption that the dismissal was due to maternity or pregnancy when it was decided within seven and a half months before or after the date of birth, and provided that the worker has given reliable notice of her pregnancy. Thus, in case of dismissal, if the employer does not prove that there was a justified cause, he/she must pay, in addition to the compensation for dismissal without cause, a special compensation equivalent to one year's wages, that is, thirteen monthly salaries, since the Supplementary Annual Salary is added.
Dismissal due to marriage: Like the previous one, the Employment Contract Law establishes a presumption that the dismissal is due to marriage when it was ordered within the three months before or six months after the marriage, without invoking a cause or if the invoked cause is not proven, provided that the employer has been duly notified and accredited with a copy of the act of celebration. The compensation payable is the same as in the case of dismissal for maternity or pregnancy - one year's pay.
Dismissal during sick leave: In the event of unjustified dismissal during paid sick leave, the employer must pay, in addition to the compensation for dismissal without just cause, compensation equivalent to the corresponding wages until medical discharge or the expiry of the leave period (which can range from three months to one year, depending on the worker's length of service and whether or not he/she has family responsibilities).
Dismissal of trade union representatives: The Law on Trade Union Associations protects workers who hold elective or representative positions in trade union organisations in order to avoid changes in working conditions, suspensions, dismissals or abuses, providing them with "trade union protection". This means that they cannot be dismissed without a prior judicial decision excluding them from this guarantee.
The violation by the employer of the guarantees established in the Law on Trade Union Associations shall entitle the worker to sue in court, by summary proceedings, for the reinstatement of his or her position, plus the wages paid during the judicial proceedings, or the reinstatement of the working conditions.
The worker, except in the case of a non-elected candidate, may choose to consider the employment relationship terminated by virtue of the employer's decision, placing him/her in a situation of indirect dismissal, in which case he/she shall be entitled to receive, in addition to severance pay, a sum equivalent to the amount of remuneration that would have corresponded to him/her during the remaining time of the mandate and the subsequent year of stability.
If the employee is an unsuccessful candidate, he/she shall be entitled to receive, in addition to the allowances and remuneration attributable to the unexpired period of stability, the amount of one additional year's remuneration.
On the other hand, prior to the enactment of the Basic Law (07/2024), there were also regulations that aggravated the compensation to be paid to the worker in case of deficiency and/or lack of registration of the employment relationship, which could be judicially accepted, through laws 24.013, 25.323, 25.345, and in case of accreditation - by the worker - of such irregularities. Today, such aggravations do not apply because the laws in question have been repealed.
TRADE UNION ASPECTS. TRADE UNIONS. RIGHT TO STRIKE.
In Argentina, trade union aspects are regulated by the Trade Union Associations Law (Law 23.551) and the Labour Contract Law (Law 20.744).
It protects the right of workers to freely associate in trade unions; guarantees the autonomy of trade unions to decide on their structure, functioning and objectives; and to negotiate collective bargaining agreements with employees.
For the purposes of trade union activity, the law protects unionised workers from trade union activity by granting them:
- Trade union privilegesProtects unionised workers against dismissal or discrimination on the basis of their union activity.
- Job stabilityUnionised workers have the right to job stability for the duration of their union mandate. This means that the employer cannot dismiss the unionised worker without judicial authorisation; if he does so, the dismissal may be considered null and void and/or give rise to the right to reinstatement. Exception to trade union privilege: Just cause: The employer may seek judicial authorisation to dismiss the unionised worker if there is just cause, such as gross misconduct or breach of contract.
The requirements for union privileges are as follows:
- Trade union membership: the worker must be a member of a trade union with trade union status.
- Trade union office: the worker must hold a trade union office, such as a member of a trade union executive committee or shop steward.
- Notification to the employer: The union must notify the employer of the worker's appointment to a union position.
The right to strike is a right of workers in Argentina, a legitimate means to defend labour and trade union interests.
For a strike to be considered legitimate, it must meet certain requirements, such as being called by the relevant trade union association and the exhaustion of prior bargaining.
Strike action cannot affect essential services, such as health, public safety or the provision of basic services.
The trade union associations are organisations that represent workers in collective bargaining and in the defence of their labour interests. They must obtain trade union status in order to represent workers in collective bargaining and in the defence of their labour interests. They negotiate collective bargaining agreements with employers to establish working conditions and wages.