Employment laws in Argentina

Employment in Argentina has seen a noticeable increase in recent years. This makes it a good time for businesses looking to tap into the country’s growing workforce and expand in the region.

However, when you want to engage with new talent, you have to be aware of the employment laws in Argentina. If employers fail to comply with the labor laws in Argentina, they have to face penalties ranging from monetary fines to sanctions suspending operations.

But balancing company workflows and managing offshore teams can be a hassle, especially for expanding organizations. 

This is where an Employer of Record (EOR) partner can help you out by managing admin on your behalf. 

Read on to know more about the employment laws in Argentina and how they benefit employees, and how an EOR can aid you with teams working in the country. 

Key employment laws in Argentina

Labor laws in Argentina are defined as federal regulations that protect employees with certain benefits. Here are the core elements covered by these laws that you need to be aware of:

• Employment registration, contract terms, and promotion of employees.
• Working hours, remuneration calculations, annual vacations, paid leaves, sick leaves, and termination.
• Insurance coverage and social security
• Taxation

Contract employment laws 

Labor law compliance in Argentina requires a defined contract to exist between an employer and employee. Before diving into the details, here are the types of contracts that work in Argentina:

• Indefinite term (standard): The standard contract for employer-employee relationships in Argentina.
• Fixed-term: These are written contracts with definite, justifiable working periods.
• Part-time: These contracts define work for specific days or hours of the week, provided the time is less than two-thirds of the standard working hours.
• Seasonal: These are permanent contracts that fulfill operations only during certain times of the year, and repeat cyclically. 
• Temporary: These contracts are fixed to particular jobs. You hire a worker to execute a particular task, and once it is finished, the contract ends after the worker is remunerated accordingly. 
• Group or team contracts: As per these contracts, a group of workers operates through a chosen delegate or representative to provide services to an employer. 

Essential contract terms

Standard employment contracts in Argentina are valid in both written and non-written formats, while fixed contracts are written only. A Spanish version of the employment contract is mandatory.

Employers are supposed to maintain a special book to record certain details.

Typically, the employment contract terms include:

• Name and updated information of the employer
• Name of the employee
• Marital status
• Date of entry and exit
• Remuneration, both assigned and received
• Identification of individuals with the right to receive family allowances
• Other data granting a proper assessment of obligations
• Terms established by company regulations

Minimum wage in Argentina

Labor laws in Argentina require employers to pay all full-day workers a minimum wage, which is set at ARS 317,800. 

Working hours in Argentina

Employees in Argentina are entitled to work 8 hours per day with a maximum duration of 48 hours per week. 

So, while planning employee working hours, make sure you align company policy with Argentine labor laws.

Overtime laws in Argentina set the maximum extra working hours to:

• 3 hours per day
• 30 hours per month
• 200 hours per year

Remuneration for overtime workers varies based on whether they work on weekdays or weekends and holidays:

• Working weekdays: 1.5 times the normal rate.
• Working weekends and holidays: 2 times the regular rate

Mandatory benefits 

Argentine employment laws entitle employees to certain benefits that you must grant to comply with national regulations. Employee rights in Argentina include:

• Pension: Employees receive a pensionary benefit each year of service, with contributions to the Argentine Integrated Pension System (SIPA). This is in addition to the permanent benefits that the employees receive for their dedicated service to the establishment.
• Insurance: Argentine employees are entitled to mandatory public health insurance and social security coverage, including family allowance and pensions. 
• Annual leave: Employees are entitled to annual earned leave based on their tenure of service:
  • Less than 6 months: 1 day off per 20 days of work
  • 6 months to 5 years: 14 consecutive days
  • 5 – 10 years: 21 consecutive days
  • 10-20 years: 28 consecutive days
  • 20+ years: 35 consecutive days
• Public holidays: Employees receive paid days off on 19 public holidays.
• Maternity leave: Pregnant employees are entitled to 90 days of maternity leave, typically divided into 45 days before and after childbirth. 
• Sick leave: Employees can be granted up to 3 months of sick leave per year for tenures under 5 years, and up to 6 months for tenures over 5 years. 
• Severance: There’s no mandatory provision of gratuity or severance pay in Argentina. Severance can only be paid if the termination is unjustified. In that case, the compensation would amount to 1 month’s salary for each year of service, provided the net tenure is more than three months.

Termination

Termination laws in Argentina allow employers to terminate employees based on valid and justifiable grounds. Unjustified terminations can lead to monetary fines, compensations, and even legal ramifications for employers. 

Here are the possible scenarios that can lead to termination of employee services:

• Employee resignation
• Mutual consent between the employee and the employer
• Termination during probation period
• Termination due to gross misconduct or unethical practices in the workplace.

Typically, the notice period in Argentina ranges between 1 and 2 months. However, the exact duration depends on tenure of employment.

Navigate employment laws in Argentina with trusted support

Expanding internationally while executing company operations takes a lot of toll on employees. Operations need to flow smoothly, and managing local teams is important as well. 

An EOR like Payoneer Workforce Management can assist you here. 

Our platform can help you:

• Engage local talent in Argentina without setting up a local entity
• Navigate employment laws in Argentina
• Manage payroll, benefits, timesheets, taxes, and more 

Book a demo today.

FAQs

1. What are the most common employment contracts in Argentina?

Employment contracts in Argentina come in different varieties, of which indefinite contracts are standard. Other than that, depending on the nature of work, you can offer fixed-term, part-time, temporary, eventual, and group or team contracts.

2. How does a pregnant employee get paid during her maternity leave?

As an employer, you don’t need to cover the maternity leave period financially. Your obligation ends at making sure that the employee takes the 90 days off without fail. The time off is paid for by ANSES, the social security authority of Argentina, as a maternity allowance that she’s entitled to.

3. Do employees receive an annual bonus?

Yes. The 13th annual payment is divided into two installments of the best remuneration received in the last 6 months. The first installment is paid in June, and the second is paid in December. The remuneration includes all of the perks, like bonuses or meal allowances, calculated as part of the best remuneration of the semester.

4. What other leave are employees entitled to other than public holidays and earned leave?

Pregnant employees receive 90 days of paid maternity leave, and expectant fathers get 2 days of paternity leave. Other than these, employees are also entitled to ask for leave on compassionate grounds, like the death of a spouse, brother, or parent, and 10 days off for their wedding.