Employment Laws In Argentina

Contractual Agreements

The contract employment law in Argentina does not mandate written employment contracts for full-term or permanent employees, except in some cases. In part-time or temporary employment, a written contract is mandatory. Besides, a contract in Argentina is considered permanent unless a specific time duration has been mentioned. 

Employers in Argentina must also keep a particular book stamped and numbered by the Ministry of Labor and containing essential employee information such as

• Name of the worker
• Marital status
• Remunerations assigned or received, among other data.

Types of employment contracts 

In Argentina, various employment contracts exist to accommodate different work arrangements and employment needs. 

Fixed-term employment contracts

• Can only last until the expiration of the agreed term.
• May not be concluded for more than five years.

Seasonal employment contracts

• Established when the employer-employee relationship is primarily based on activities during specific times of the year.
• These activities are subject to repetition in each cycle due to the nature of the business.

Temporary employment contracts 

• Established when a worker’s activity is performed under the employer’s direction to achieve specific results identified by the employer.
• Characterized by its association with extraordinary services or demands, often during transitional periods with the company, operation, or establishment.

Group or team employment contracts

• An employer enters into an agreement with a collective of workers, represented by a delegate, to provide services inherent to the employer’s business activity.
• Each group member in team employment contracts is entitled to the same rights, duties, and protections under the labor laws of Argentina as individual workers.

Teleworking contracts

• The execution of tasks, performance of work, or provision of services (Articles 21 and 22) occurs either entirely or partially at the worker’s home or locations other than the employer’s premises.
• Relies on information and communication technologies to facilitate remote work.

Obligations and rights for both parties

Employers and employees are obligated, actively and passively, to adhere to the explicit terms outlined in the employment agreement. According to Article 63 of the Employment Contract Law, the principles of good faith govern the action of both parties.

Some of the key duties of employers include

• Payment of remuneration
• Duty to protect - food and housing
• Duty of occupation
• Duty of diligence.

Some of the key obligations of employees include

• Duties of diligence and collaboration
• Duty of fidelity
• Compliance with orders and instructions
• Liability for damage.

Working Hours and Overtime 

Working hours and overtime in Argentina are regulated by Law No. 11,544 on Working Day. Both employers and employees must familiarize themselves with the same to avoid non-compliance. 

Regular working hours

• Argentina labor law mandates eight hours per day or 48 hours per week as the standard working hours for all employees in public and private establishments.

Overtime regulations and compensation

• According to the labor law in Argentina, overtime hours cannot be more than three hours per day, 30 hours per month, and 200 hours per year.
• An employer must pay at least 50% of the wage if overtime is performed on regular working days.
• The compensation rate for overtime work during public holidays is 100% of the wage.

Minimum Wage and Compensation

Employers and employees must understand minimum wage and compensation regulations to promote fair and equitable compensation practices. Let’s take a look at some of its key aspects.

The minimum wage rate in 2024

• The national minimum wage of Argentina was ARS 156,000.00 per month in 2023.
• The national minimum wage is adjusted periodically according to the National Council for Employment, Productivity, and the Adjustable Minimum Living Wage.
• Employees in Argentina are also entitled to a supplemental annual salary (bonus) paid in two installments: the first on June 30 and the second on December 18 of each year.

Factors affecting wage determination

When determining the national minimum wage, several factors are taken into consideration, such as

• The needs of workers and their families
• Socio-economic situation of the country
• Goals pursued by the National Council and 
• Correspondence with socio-economic situation.

Employee Benefits and Social Security

Argentina boasts a comprehensive social security system covering various aspects, including unemployment benefits, family allowances, and pensions. The system is mainly administered by the National Social Security Administration (ANSES).

Statutory benefits

Unemployment insurance

• Benefits registered salaried employees who have been terminated under specific circumstances, such as being dismissed without just cause or losing their job due to their employer’s bankruptcy.
• Some benefits included are basic monetary benefits, payment of family allowances, and medical care coverage. 

Pension benefits

• Individuals over 65 who do not have the required years of contributions can access the universal pension for older adults in Argentina. 

Dependents’/Survivors’ Benefits

• Type of financial aid provided to the dependents of the deceased pensioner. 
• Dependents may include a child with a disability who was dependent on the deceased, a widow(er) or partner who lived with the deceased for at least five years and an unmarried child younger than 18 who is not receiving benefits.

Invalidity benefits

• Aimed at providing financial support to individuals unable to work due to severe disabilities.
• To be eligible for the invalidity benefits, individuals must be assessed with a minimum disability of 66%, which constitutes total disability, among other criteria.

Additional perks and benefits

• Non-contributory old-age pension
• Pension for a mother of seven or more children
• Non-contributory pension for people with HIV and/or Hepatitis B/C
• Honorary pension for veterans of the South Atlantic War
• Prenatal allowance
• Maternity allowance
• Family allowance per child or child with disabilities
• Family allowance for marriage
• Family allowance for annual school aid
• Family allowance for birth or adoption

Social security contributions and requirements

• The employer’s social security tax is calculated based on the entirety of the employee’s monthly earnings.
• For companies predominantly involved in service or trade sectors, with annual sales surpassing specified thresholds (ARS 2,625,990,000 for services and ARS 10,310,100,000 for trade), the total employer contribution is 26.5%; otherwise, it stands at 24%
• The collective social security tax rate for employees is 17%, comprising contributions of 11% towards pension funds, 3% towards healthcare, and 3% towards social services.

Vacations and Paid Time-Off

Below are some key regulations related to vacations and unpaid leave in Argentina.

Annual leave entitlement

• The length of the annual leave entitlement depends on the duration of service with the employer. 

Public holidays and special leaves

The public holidays in Argentina include

• New Year’s Day
• Good Friday
• Labor Day
• Anniversary of the 1810 Revolution
• Malvinas Day
• Flag Day
• Independence Day
• Anniversary of the Death of General Jose de San Martin
• Columbus Day
• Christmas Day

Sick leave

• In Argentina, employees are entitled to paid sick leave for a specified duration based on the length of their service.

• The labor law in Argentina also mandates an extra 12 months of unpaid leave for employees. 

Maternity leave

• The labor laws of Argentina mandate 90 days of paid maternity leave for all female employees.
• It is divided into 45 days before childbirth and 45 days after delivery.

Birth of a child

• Under the employment laws in Argentina, employees are granted two days of leave for the birth of their child.

Leave for marriage

• Employees are entitled to ten days of marriage leave.

Death of a spouse

• Employees get three days of leave in the event of the death of a spouse/child/parents. 

Death of a brother

• According to the labor law in Argentina, employees are entitled to one day of leave in the event of the death of a brother.

Study leave

• Two days of leave per secondary or university education exam and up to ten days per calendar year.

Termination and Severance

In Argentina, termination of employment cannot occur unilaterally without prior notice. If notice is not given, additional compensation beyond what is owed to the employee based on their length of service must be provided, particularly when the employer initiates the termination.

Grounds for termination

Some of the common grounds for termination of employment in Argentina are

• Resignation of the employee
• Mutual agreement of both parties
• Abandonment of work
• Force majeure or lack or reduction of work
• Death of the employee
• Death of the employer
• Expiration of the term
• Employee retirement
• Disability or inability of the employee  

Notice period and severance pay

• If an employee terminates the contract, the notice period is 15 days.
• When initiated by the employer, the length of the notice period depends on the duration of service.

• When termination is based on economic grounds, employees are entitled to severance pay worth half a month’s salary for each year of service.
• If the termination is without just cause or any cause, then the severance pay equates to one month’s salary for each year of service.

Discrimination and Equal Opportunity

Employers in Argentina must maintain compliance with the various laws and regulations to promote equality and prevent discrimination in the workplace. It recently introduced an independent equality body — the National Institute Against Discrimination, Xenophobia, and Racism.

Prohibitions against workplace discrimination

• Article 17 of the Employment Contract Law in Argentina prohibits discrimination between workers based on sex, race, nationality, age, or union. 

Health and Safety Regulations 

Argentina has two primary Occupational Health and Safety (OSH) laws. 

• Law No. 24557 (enacted in 1995) mandates employers to engage with occupational risk insurance provided by Occupational Risk Insurers (ART).
• Law No. 19587 (enacted in 1972) establishes guidelines and standards for ensuring workplace safety and health.

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FAQs 

Q1: Does Argentina have good labor laws?

A1: Argentina has a comprehensive framework of labor laws to protect workers' rights, promote decent working conditions, and ensure social security. 

Q2: What is the employment contract law in Argentina?

A2: The employment contract law in Argentina aims to regulate employment relationships and the fair treatment of workers. It provides a legal framework that governs the rights and obligations of employers and employees. 

Q3: What are the maximum work hours in Argentina?

A3: According to the labor laws of Argentina, the standard working hours consist of eight hours per day or 48 hours per week. 

Q4: What is the legal working age in Argentina?

A4: Employing individuals under the age of 14 in any form of work is prohibited by the employment laws in Argentina.