Argentina - Employment Laws

Argentina Guide 2017
The Global Employer

The Global Employer
Argentina Guide 2017
Key Contacts
For more information regarding
the Employment &
Compensation Practice in
Argentina, please contact:
Charlie Dodds (Buenos Aires)
Tel: +54 11 4310 2270
carlos.dodds@bakermckenzie.com
For more information regarding
the Global Employment &
Compensation Practice Group,
please contact:
Guenther Heckelmann (Global Chair)
Tel: +49 69 2 99 08 142
guenther.heckelmann@bakermckenzie.com
Gil Zerrudo (Asia Pacific)
Tel: +63 2 819 4916
gil.zerrudo@quisumbingtorres.com
Fermin Guardiola (Europe, Middle
East and Africa)
Tel: +34 91 391 59 58
fermin.guardiola@bakermckenzie.com
Carlos Felce (Latin America)
Tel: +58 212 276 5133
carlos.felce@bakermckenzie.com
George Avraam (North America)
Tel: +1 416 865 6935
george.avraam@bakermckenzie.com
About the Guide
This guide is intended to provide employers and human
resources professionals with a comprehensive overview of
the key aspects of Argentinian labor law. It covers the
entire life-cycle of the employment relationship from hiring
through to termination, with information on working terms
and conditions, family rights, personnel policies, workplace
safety and discrimination. The guide links to our global
handbooks, which include information for Argentina on
immigration, data privacy, trade unions and works councils.
The guide also contains information on the employment
implications of share and asset sales.
Save where otherwise indicated, law and practice are
stated in this guide as at May 2017.
IMPORTANT DISCLAIMER: The material in this guide is
of the nature of general comment only. It is not offered as
legal advice on any specific issue or matter and should not
be taken as such. Readers should refrain from acting on
the basis of any discussion contained in this guide without
obtaining specific legal advice on the particular facts and
circumstances at issue. While the authors have made
every effort to provide accurate and up-to-date information
on laws and regulations, these matters are continuously
subject to change. Furthermore, the application of these
laws depends on the particular facts and circumstances of
each situation, and therefore readers should consult their
attorney before taking any action.

The Global Employer | Argentina Guide
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Table of Contents
1 Overview ...................................................................................................................................1
1.1 General overview ..........................................................................................................1
1.2 General legal framework...............................................................................................1
1.2.1 Sources of law..................................................................................................1
1.2.2 Collective agreements .....................................................................................1
1.2.3 Court framework...............................................................................................1
1.2.4 Litigation considerations ..................................................................................2
1.3 Types of working relationship .......................................................................................2
1.4 On the horizon...............................................................................................................3
2 Hiring employees .....................................................................................................................3
2.1 Key hiring considerations..............................................................................................3
2.2 Avoiding the pitfalls .......................................................................................................3
2.3 Procedural steps and key documents in recruitment....................................................3
2.3.1 Identifying the vacancy ....................................................................................3
2.3.2 Preparing a job description and person specification for the position .............4
2.3.3 Advertising the job ...........................................................................................4
2.3.4 Shortlisting and interviewing ............................................................................4
2.3.5 Making an offer of employment, subject to conditions where appropriate ......4
3 Carrying out pre-hire checks ..................................................................................................4
3.1 Background checks.......................................................................................................4
3.2 Reference checks .........................................................................................................4
3.3 Medical checks..............................................................................................................5
4 Immigration...............................................................................................................................5
4.1 Immigration ...................................................................................................................5
5 The employment contract .......................................................................................................5
5.1 Form of the employment contract .................................................................................5
5.2 Types of employment contract......................................................................................5
5.3 Language requirements ................................................................................................6
6 Working terms and conditions ...............................................................................................6
6.1 Trial periods ..................................................................................................................6
6.2 Working time .................................................................................................................7
6.3 Wage and salary ...........................................................................................................7
6.4 Making deductions ........................................................................................................7
6.5 Overtime........................................................................................................................8
6.6 Bonus and commission.................................................................................................9
6.7 Benefits in kind..............................................................................................................9
6.8 Profit sharing and equity incentive plans ....................................................................10
6.9 Pensions .....................................................................................................................10

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6.10 Annual leave ...............................................................................................................10
6.11 Sick leave and pay......................................................................................................11
6.12 Taxes and social security............................................................................................12
7 Family rights...........................................................................................................................13
7.1 Time off for ante natal care .........................................................................................13
7.2 Maternity leave and pay..............................................................................................13
7.3 Paternity leave and pay ..............................................................................................13
7.4 Adoption leave and pay ..............................................................................................14
7.5 Other family rights.......................................................................................................14
8 Other types of leave...............................................................................................................14
8.1 Time off for dependants ..............................................................................................14
8.2 Time off for education and training .............................................................................14
8.3 Works council and union representation.....................................................................14
8.4 Public duty leave.........................................................................................................14
8.5 Marriage ......................................................................................................................15
8.6 Accidents and diseases not related to work ...............................................................15
8.7 Disciplinary suspension ..............................................................................................15
9 Termination provisions and restrictions .............................................................................16
9.1 Notice periods .............................................................................................................16
9.2 Payment in lieu of notice.............................................................................................16
9.3 Garden leave...............................................................................................................16
9.4 Intellectual property.....................................................................................................16
9.5 Confidential information ..............................................................................................17
9.6 Post-termination restrictions .......................................................................................18
9.7 Retirement...................................................................................................................18
10 Managing employees.............................................................................................................18
10.1 The role of personnel policies.....................................................................................18
10.2 The essentials of an employee handbook ..................................................................19
10.3 Codes of business conduct and ethics .......................................................................19
11 Data privacy and employee monitoring...............................................................................19
12 Workplace safety....................................................................................................................19
12.1 Overview .....................................................................................................................19
12.2 Main obligations ..........................................................................................................19
12.3 Claims, Compensation and remedies.........................................................................20
13 Employee Representation, Trade Unions and Works Council..........................................21
14 Discrimination ........................................................................................................................21
14.1 Who is protected? .......................................................................................................21
14.2 Types of discrimination ...............................................................................................22
14.3 Special cases..............................................................................................................22

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14.3.1 Disability discrimination..................................................................................22
14.4 Exclusions ...................................................................................................................23
14.4.1 Occupational requirements............................................................................23
14.4.2 Grounds of religion or belief...........................................................................23
14.4.3 Exceptions relating to age..............................................................................23
14.5 Employee claims, compensation and remedies .........................................................23
14.6 Potential employer liability for employment discrimination .........................................23
14.7 Avoiding discrimination and harassment claims.........................................................24
15 Termination of employment..................................................................................................24
15.1 General overview ........................................................................................................24
15.2 By the employer ..........................................................................................................24
15.3 By the employee .........................................................................................................25
15.4 Employee entitlements on termination........................................................................26
15.5 Notice periods .............................................................................................................26
15.6 Terminations without notice ........................................................................................26
15.7 Form and content of notice termination ......................................................................26
15.8 Protected employees ..................................................................................................27
15.8.1 Irregular registration of hire date or remuneration .........................................27
15.8.2 Pregnancy and recent birth............................................................................27
15.8.3 Recently married............................................................................................27
15.8.4 Sick employees..............................................................................................27
15.8.5 Union representatives ....................................................................................27
15.8.6 Discriminated employees...............................................................................28
15.9 Mandatory severance..................................................................................................28
15.10 Collective redundancy situations ................................................................................29
15.11 Claims, compensation and remedies..........................................................................30
15.12 Waiving claims ............................................................................................................31
16 Employment implications of share sales ............................................................................31
16.1 Acquisition of shares...................................................................................................31
16.2 Information and consultation requirements.................................................................31
17 Employment implications of asset sales.............................................................................31
17.1 Acquisition of assets ...................................................................................................31
17.2 Automatic transfer of employees ................................................................................31
17.3 Changes to terms and conditions of employment.......................................................31
17.4 Information and consultation requirements.................................................................32
17.5 Protections against dismissal......................................................................................32
17.6 Other considerations...................................................................................................32

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1 Overview
1.1 General overview
Argentina is a democratic federal republic with a strong presidential regime. The nation is divided into
provinces. All powers not delegated to the nation (federal government) remain in the provinces.
Labor law includes individual and collective labor law. The individual labor law deals with employment
issues and is subject to strict regulation arising from laws and collective bargaining agreements.
In terms of highlights, the law recognizes the right of employers to legally terminate any employment
relationship, at any time and without cause, with severance pay. Unions are very strong, particularly in
the manufacturing sector. Almost all activities fall under the scope of a specific union and this union
has the right to collectively represent the employees in the relevant sector. As a final highlight, the
legal framework and judicial system tends to favor employees.
1.2 General legal framework
1.2.1 Sources of law
The labor and employment rights that govern Argentina stem from the Argentine Constitution (the
“Constitution”), international treaties approved by the National Congress, several federal statutes and
acts passed by the National Congress, as well as collective bargaining agreements and individual
agreements.
The Constitution includes some basic employment provisions and grants power to the federal
government to enact employment and labor legislation applicable to all provinces.
Under this authority, the National Congress has enacted comprehensive statutory regulations
regarding employment. Most employment issues are dealt with in employment legislation, which sets
out minimum standards.
1.2.2 Collective agreements
As mentioned in 1.2.1, most employment issues are dealt with in employment legislation, which sets
out minimum standards. Collective bargaining agreements (“CBAs”) increase these minimum
standards and leave little space for individual agreements.
CBAs are compulsory for almost all industrial and commercial activities. They are entered into
between the union and the chamber of employers which represent the workers and employers of such
activity. Unless a special company agreement is reached with a union representing the company’s
main activity, the CBA for the activity will take precedence.
CBAs usually regulate issues such as covered workers’ territory, salary scales, salary items (eg,
productivity, assistance, etc.), worker categories, workplace conditions, fringe benefits, leaves of
absence, etc.
Although employee affiliation is voluntary, certain CBAs set out compulsory contributions for
employers and/or compulsory withholdings from employees’ salaries (“check off”), in order to finance
specific union objectives, such as the promotion of culture and tourism, maintenance of retreat places,
etc.
1.2.3 Court framework
Each province has its own judicial organization and judicial process.

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Some jurisdictions, like the City of Buenos Aires, include a mandatory and preliminary process prior to
the filing of a claim, in order to attempt a settlement. The City of Buenos Aires has a two instance
process, with an extraordinary appeal to the Supreme Court. Other jurisdictions only have a one
instance oral process before a Tribunal, with an extraordinary appeal to the Provincial High Court.
In order to be appointed, judges need to go through a selection process, which requires them to have
some political contacts.
1.2.4 Litigation considerations
In general, employees or former employees have two years within which to file a claim. This term can
be suspended or interrupted.
The system provides claimants with many incentives for litigation:
• employees can require proper registration of their hire date or remuneration, and demand
25% of the unrecorded periods — see 15.8.1
• employees can demand an additional 100% of severance in the case of improper registration
• employees can demand payment of the three highest monthly salaries when employers fail to
deliver a work certificate containing exact information of their hire date and compensation
• employees can demand a penalty equivalent to 50% of their severance when employers fail
to pay severance in due time, forcing them to start a collection process
• employees are entitled to legal presumptions — this means that, in case of doubt about the
merits of the evidence or the interpretation of the law, courts must rule in favor of the
employee
• judicial awards include a high interest rate (called a lending rate), plus a recognition of
counsel fees (an award in favor of the employee also impose an obligation on the employer to
bear expert witness fees and litigation taxes)
1.3 Types of working relationship
The employment relationship can be classified in many ways and includes those who work for the
private sector and those who work for the public sector.
Individuals who provide their service in the private sector are generally either employees of trust
(including corporate directors, executive directors, managers, chiefs and other hierarchical/
supervisory positions) or employees under a CBA. Some CBAs include positions up to the level of
supervisors; others exclude them. Some CBAs are specific to supervisors and chiefs.
In general, employees from the private sector are ruled by the Employment Contract Statute. This law
covers almost all of the topics arising in the employment relationship. Certain workers may be subject
to specific statutes, like traveling salesmen, rural workers, journalists, domestic workers, etc.
Also, depending on the duration of the work, employees can work for an indefinite term, or on a fixed
term or contingency term.
Depending on who the employer is, they could be working as direct or indirect employees. Indirect
employees are those who work via temporary staffing agencies, or through companies that are
engaged in providing a type of work or service.
For more information about the types of employment contracts, see 5.2.

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1.4 On the horizon
The current government, which took office in December 2015, is introducing significant changes to
various aspects of the economy. These changes to the economy impact, in one way or another, labor
relations. For example:
• although the dollar fluctuation is stable, the local currency is still subject to a high inflation
rate, which impacts salary negotiations with unions
• restrictions on importing goods are lenient and this competition affects local manufacturers
• certain exchange control regulations have been eliminated, meaning that companies needing
to fund local subsidiaries are expecting a lower regulatory impact
The government has also introduced various measures to help reduce the unemployment rate. For
example, it is incentivizing companies to hire unemployed workers by converting subsidies into
a salary coupon to enable companies to hire workers on a reduced salary. There are also a number of
programs for young workers, providing training and experience, etc.
The authorities are also focusing on reducing costs by means of promoting productivity agreements
for specific sectors, like the one recently reached in the oil industry.
The government has also pressured the National Congress to make changes to the Workers
Compensation Law, in an attempt to reduce litigation.
Generally, however, significant forthcoming developments or changes in employment laws are not
envisaged.
2 Hiring employees
2.1 Key hiring considerations
No legal formality is required to create an employment relationship. Written contracts are not required
— see further at 5.1.
Employers have an obligation to immediately report any new hires to the tax authority, and to include
employees in the monthly sworn statements of social security contributions and tax withholdings.
Employers must also include the new hires in the mandatory Payroll Book, and include them in the list
of covered employees for the purposes of mandatory life and workers’ compensation insurance.
2.2 Avoiding the pitfalls
Employment laws are very rigid and prevent changes that are detrimental to employees. Employers
should be careful when hiring and when starting an employment relationship, as the relevant terms
and conditions cannot be subject to detrimental changes.
During the hiring process, employers should not discriminate against employees on the grounds of
sex, race, age, religion, marital status, nationality, trade union membership, ideology, politics,
economic position, social condition, physical characteristics, genetic factors, or medical conditions not
related to work.
2.3 Procedural steps and key documents in recruitment
2.3.1 Identifying the vacancy
There are no legal procedures relating to identifying a vacancy. As a general rule, the recruitment
process simply begins when a potential vacancy arises either due to the need to create/recruit to a
new post, or to fill a post that has/will become vacant.

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2.3.2 Preparing a job description and person specification for the position
There is no legal requirement or formal procedures relating to the drafting of a formal job description
and person specification for the position. However, when identifying a vacancy, the employer should
consider the personal requirements for the position. It should also consider the appropriate working
relationship and type of contract, as explained at 1.3 and 5.2. The type of relationship will impact how
much compensation is offered (ie, under a CBA or not, eligible to overtime or not, etc.).
2.3.3 Advertising the job
There is no general statutory regulation of job advertisements and employers may use any medium
that they choose to advertise a vacancy. Advertisements must not be discriminatory, except where
there is a valid reason. It would be lawful, for example, to advertise for a woman to model women’s
clothes.
2.3.4 Shortlisting and interviewing
During the selection process, an employer is not generally restricted from requesting information and
documentation on matters such as a job applicant’s financial, educational or employment history, or
from checking information provided by the applicant, as long as this refers to matters that are related
to the employee’s suitability for the position. An employer may require a job applicant to submit a
police certificate to confirm whether or not he or she has a criminal record. In general terms, the
employer must refrain from enquiring about an individual’s political, religious or trade union opinions,
or sexual preferences.
For more information about discrimination issues, please see 14.
2.3.5 Making an offer of employment, subject to conditions where appropriate
There is no statutory requirement on an employer to provide a written job offer to a successful job
applicant, or to provide a written statement of the terms of employment offered. The offer could be
subject to certain conditions, such as confirmation that the applicant holds the qualifications that
he/she claims to have, passing the pre-hire medical examination, etc.
3 Carrying out pre-hire checks
3.1 Background checks
Employers can request candidates to provide proof of education and reference letters from previous
employers.
In relation to criminal background checks, criminal information about individuals is exclusively stored
in police records and only the individual is permitted to obtain a certificate of conduct.
In order to avoid discrimination claims, employers must require the information that is relevant to the
position, and that will help in defining the qualifications and suitability of the candidate.
3.2 Reference checks
Employers can request candidates to provide reference letters from previous employers.
Employees can also show prospective employers the work certificates that prior employers are
obliged to complete, which contain data regarding the employee’s position, years of service and
remuneration.

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3.3 Medical checks
An employer can subject job applicants to medical screening or examinations (including psychological
examinations), but only for the purpose of establishing their capability and suitability for the position.
All prospective employees must undergo a standard pre-employment medical examination, and
employers may require additional specific medical tests where justified by the nature of the activity
concerned. Alcohol and drug testing are not specifically regulated and are not included in the standard
examinations. If the employer wants to conduct such tests, this is permitted only where alcohol or
drug use is relevant to the particular nature of the job, and the job applicant’s express consent must
be obtained. Similarly, HIV/AIDS testing is permitted only if necessary because of the nature of the
working conditions and job concerned, and the job applicant’s express consent must be obtained.
4 Immigration
4.1 Immigration
Please refer to our Handbook — The Global Employer: Focus on Global Immigration and Mobility,
which is accessible HERE, for information about the immigration system applying in Argentina.
5 The employment contract
5.1 Form of the employment contract
Indefinite term employment does not need to be executed in writing and it is not customary for
employers to issue offer letters or employment contracts to hire for an indefinite term. In these cases,
there is an oral contract of employment, which terms and conditions are ruled by the laws, applicable
CBA and whatever the parties have agreed between themselves.
Setting out terms in writing is advisable if employers need to state specific terms of employment that
may eventually be used as evidence (eg, the terms of an incentive compensation plan, specific
provisions, employer policies, etc.). Once terms are incorporated into a contract of employment they
cannot be changed to the employee’s detriment.
Definite/fixed-term contracts and contingent contracts must be executed in writing. These contracts
must explain the special and extraordinary circumstances that justify a hire for a definite term.
5.2 Types of employment contract
The general rule is that contracts should be executed for an indefinite period of time. In practice, this
is the most common method used to hire employees. As stated at 5.1, in special and extraordinary
circumstances an employer can hire employees for a definite/fixed-term. The alternative ways an
employer can do this are set out below.
Alternative types of employment contract
Fixed-term contract Employers may only hire under a fixed-term when there is a specific and
extraordinary reason and the expiration date can be foreseen (ie, when the end
of the term of the contract is fixed and certain), with a minimum of one month
and a maximum hiring period of five years. Termination of a fixed-term contract
requires just cause. In case of normal termination of a fixed-term contract
exceeding a one-year term, the employee will be entitled to 50% of the
indemnity for seniority payable under an indefinite term to employees who are
terminated without just cause. A fixed-term employment contract may be
renewed, but the total length of the relationship may not exceed five years. In
practice, if more than one renewal is made, it will most likely be construed that

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Alternative types of employment contract
the employer is mischaracterizing the form of hiring and is hiding an indefinite
term. Furthermore, because these contracts are an exception to the indefinite
term rule, the courts place restrictive criteria on these types of contracts.
Part-time contracts Employees work part-time when they work for less than two-thirds of the normal
working time in the activity. Normally, the statutory maximum working time is
eight hours a day and 48 hours a week, hence the maximum working time for a
part-time employee is 5.3 hours a day and 31.7 hours a week. The
remuneration must be pro-rata to that of a full-time employee in the same
category or job. Social security contributions and other dues are also
proportional. Any employee who is contracted to work more than two-thirds of
normal working time is entitled to be paid the remuneration due to a full-time
employee. Part-time employees must not work hours in excess of their
contractual hours, except where this is required because of serious and
imminent danger to people or the employer’s goods.
Contingent
contracts
These contracts do not have a set end date. Termination of these contracts
requires just cause. Should an individual be hired on a contingent contract to
cope with a production increase, the maximum term is reduced to six months
per year, or 12 months per three-year period. Employers may only hire under a
contingent term when they have a specific and extraordinary reason and cannot
foresee a certain expiration date.
Internships The internship is a special alternative form of engagement used for training
purposes. Internships are not considered employment and are, therefore,
exempt from social security contributions. Internship contracts are available only
to students. Employers must enter into an agreement with an educational
institution establishing an internship program to be performed at the employers’
premises. Internship contracts have a minimum term of two months and a
maximum term of 12 months, which may be extended once for six additional
months. The work schedule may not exceed 20 hours per week.
5.3 Language requirements
There is no requirement that written contracts, policies or handbooks be in Spanish, so foreign
languages may be used. However, such documents must be translated into Spanish if they are used
in court proceedings. The use of Spanish is advisable, however, as the use of a foreign language may
result in claims that the employee did not fully understand its terms.
6 Working terms and conditions
6.1 Trial periods
Unless otherwise agreed upon by the parties (ie, waiver of trial period), all indefinite term employment
contracts are subject to a trial or test period. During this period, which covers the first three months of
employment, the employer may terminate an employee without just cause, and without being liable for
any severance payment, except for accruals such as salary corresponding to the employee’s working
days, proportional 13th month salary and compensation related to accrued but untaken vacation. The
party terminating the contract must give the other party at least 15 days’ written notice; if the employer
does not observe this requirement, it has to make a payment in lieu of this notice (see 9.2). During
these trial periods, the employer and the employee must both pay social security contributions.

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6.2 Working time
Working time is defined as the time during which the employee is at the employer’s disposal and
cannot perform activity on his or her own account. Periods of inactivity that form an inherent part of
the employee’s work are generally counted as working time.
The law provides for a work limit of eight hours per day and 48 hours per week. A regular working
schedule would consist, therefore, of an equal distribution of six working days or eight hours per day
(Monday to Saturday). Normal weekly working hours may be distributed unevenly across the days of
the week, so that employees work more or less than eight hours a day. However, the employer may
impose a schedule with an unequal distribution of the 48 working hours, provided that the working day
does not exceed nine hours. For example, those who do not work on a Saturday morning can work a
nine-hour schedule from Monday to Friday.
The ceiling fixed by the regulations is a matter of public policy, which means that individual
employment contracts or CBAs may provide for a more convenient schedule for the worker (eg, a limit
of 40 hours), but not a schedule of more than 48 hours.
Specific regulations apply in the case of shift work, when normal working time may exceed eight hours
per day and 48 hours per week, as long as these limits are observed on average over a reference
period of three consecutive weeks.
Directors and managers are not subject to mandatory rules regarding working hours. In other words,
directors and managers are not subject to any specific schedule and are not entitled to overtime
compensation.
CBAs usually provide for breaks.
Employees must be granted a daily rest period of at least 12 hours between the end of one working
day and the start of the next.
Employees are also entitled to a weekly rest period of 35 hours, generally from 1 p.m. on Saturday
until midnight on Sunday. Exceptions to this general principle may apply.
In general terms, work on national holidays (see 6.10) is prohibited.
6.3 Wage and salary
An employee’s salary must be at least equal to the salary set out for the employee’s category in the
applicable CBA for the employer’s activity. These CBAs normally include base pay, as well as
payments due for years of service.
Salaries should not be given on a discriminatory basis and the rule “equal pay for equal work” applies.
Employers are free to grant other types of compensation, such as base and variable compensation,
bonuses, stock purchases, stock options, fringe benefits, etc. However, they may not use these fringe
benefits as a means to give salaries below the minimum wage fixed by the applicable CBA.
6.4 Making deductions
Subject to certain exceptions, employers cannot make any deduction or withholding from an
employee’s salary. Employers must not impose fines on employees or deduct fines from their
remuneration.
The exceptions include:
• advances of pay made to the employee, in compliance with the statutory rules relating to this

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• the employee’s tax and social security/pension contributions
• contributions, instalments and other periodic payments that employees are obliged to make
by law or CBAs, or that result from their membership of a trade union or cooperative/mutual
society (including contributions to social and other services provided by such organizations)
• the purchase or rent of housing
• contributions to group life insurance plans for the employee and his or her family, and to
retirement plans approved by the relevant authorities
• deposits in savings accounts at various public and trade-union-run institutions, and repayment
of loans made by such institutions
• repayment of the cost of shares in the employing company bought by the employee
• repayment of the cost of goods purchased at the employer’s establishments — but only if
these goods are produced or manufactured in such establishments
• repayment of the cost of housing loans from the employer, under a scheme approved by the
relevant authorities
All deductions from pay require an employee’s explicit consent, except where the deductions arise
from an obligation imposed on the employee or employer by law or a CBA.
A court may order that part of an employee’s remuneration be paid to a third party, for example, for
alimony or child support or to meet some other debt. Remuneration up to the level of the statutory
national minimum wage may not be allocated to such a third party. A maximum of 10% of
remuneration between the minimum wage and twice this amount may be allocated, while up to 20% of
remuneration above twice the minimum wage may be allocated.
The total of all deductions from pay, excluding tax and social security/pension contributions, must not
exceed 20% of an employee’s remuneration, although it can increase to 35% when income taxes are
applicable.
6.5 Overtime
Except for directors and managers, all employees are subject to working time and overtime
regulations.
Employees who work overtime are entitled to a premium rate of pay for the hours concerned. The
statutory premium is 50% on top of the employee’s normal rate for overtime on Monday to Friday and
before 1 p.m. on Saturday, and 100% if the overtime is worked on a Sunday or public holiday, or after
1 p.m. on a Saturday.
No employee is allowed to work overtime in excess of 30 hours per month or 200 hours per year. In
addition, between the end of one working day and the beginning of another, there must be a resting
period of not less than 12 hours. Any overtime beyond these limits requires prior authorization from
the public labor authorities, and the violation of such rules by employers will trigger the imposition of
fines.
Overtime is generally voluntary. Employees cannot be obliged to work overtime except in cases
where there is an actual or imminent danger or where an accident has occurred or is imminent, or to
meet the exceptional needs of the enterprise or the national economy.

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6.6 Bonus and commission
Under the law, employees are entitled to receive, on top of their salaries for each calendar year, an
additional monthly salary (“13th month salary”). This 13th month salary is payable in two semi-annual
instalments, which are due on 30 June and 18 December. The amount of each instalment is equal to
one half of the highest remuneration paid during the corresponding semester.
There is no legal restriction on employers paying, at any time, any other bonus to their employees.
The payment of repetitive bonuses, granted at an employer’s sole discretion (ie, without an objective
basis), can generate an implied right, in an employee’s favor, to the bonus. Employees, therefore,
may demand the payment of these bonuses as part of their regular salary.
If employees receive a portion of their remuneration as variable pay, it is advisable to have a policy
setting out the terms and conditions for acquiring an incentive/bonus.
Sales representatives are entitled to receive commission for a sale and commission over the
collection they make from the client. The commission is due when they place the order, provided the
employer does not reject it within 15 days. They are also entitled to commission for all sales
generated within their sales territory, even those not necessarily resulting from their own promotional
efforts.
As mentioned at 5.1, once terms are incorporated into a contract of employment they cannot be
changed to the employee’s detriment.
6.7 Benefits in kind
Remuneration can be paid in money or in kind (such as food and accommodation). However, no more
than 20% of an employee’s total remuneration can be made up by a payment in kind.
Benefits in kind take various forms and vary according to the size of the employer and the seniority of
the employee.
The law establishes two groups of non-remunerative fringe benefits: (i) those not subject to social
security contributions; and (ii) those subject to a special social security contribution. These two groups
of fringe benefits are not salaries, and should not be taken into account when estimating severance
payments.
Non-remunerative fringe benefits can include employers’ cafeteria services, reimbursement for
medical and dental services and medicine expenses, provisions for work clothes and other items to be
used exclusively at the workplace and reimbursement for child care and nursery expenses.
Health and medical coverage is covered through the social security system and the law provides for a
minimum amount of cover. Both employers and employees are obliged to contribute to the cover.
However, employees or employers may take out additional cover. Although there has been a uniform
position that an employer’s payment of this additional cover was not remuneration, some recent court
decisions challenge this, defining it as part of remuneration.
In relation to the provision of a company car for personal use by employees and/or their families,
employers must treat the economic value of this benefit as remuneration, subject to social security
contributions. The same applies for housing, educational assistance, and to any payment that
enhances the compensation package. Employers should be aware that there is an increasing trend of
litigation in this area.
Employers must take out and pay the premium for a collective life insurance policy in favor of their
employees. Collective bargaining agreements may also request additional employee life insurance.

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6.8 Profit sharing and equity incentive plans
There is no legal obligation for employers to offer their employees any type of profit sharing or equity
incentive plan such as stock purchases, stock options, profit sharing, etc. In addition, there is no
limitation on said plans being offered by employers to their employees. The benefits that employees
receive through these plans would, in principle, be remunerative in nature. Therefore, these payments
are subject to social security contributions and income taxes.
In relation to profit sharing plans, the Constitution entitles employees to participation rights in the
gains of their employers. However, despite this, the relevant clause is not operative because it has not
been held to be effective. In practice, therefore, employees do not have participation rights in their
employer’s financial results. However, some companies do implement bonus plans that take their
results into account.
6.9 Pensions
All employees working in Argentina are covered by the social security system. Social security
contributions finance retirement benefits, disability pensions and death benefits. The system is
administered by the federal government. The benefit takes into account the contributions made
(earnings related retirement pension), subject to a cap.
Ordinary retirement benefits are generally payable upon reaching the age of 65 for men and 60 for
women (although women may choose to defer retirement until the age of 65). The individual must
have made at least 30 years of social security contributions.
Individuals who have worked under hazardous or unhealthy conditions may have their retirement age
and required contribution record reduced by up to 10 years.
Individuals who do not qualify for ordinary retirement benefit may qualify for a benefit when they
exceed 70 years of age and have made at least 10 years of social security contributions, including at
least five years’ contributions in their last eight years of employment. In addition, social assistance is
available to individuals over the age of 70 with income below a certain level, who do not receive any
social security benefits or support from family members.
Employers may provide private supplementary retirement and pension plans to employees as an
employment benefit.
Information regarding the rates of employer and employee contributions to the social security system
is set out at 6.12.
6.10 Annual leave
Employees are entitled to paid annual vacations of 14 calendar days when seniority does not exceed
five years; 21 calendar days when seniority is between five and 10 years; 28 calendar days when
seniority is between 10 and 20 years; and 35 days when seniority exceeds 20 years.
Employees must work for at least half of the working days of the calendar year to earn their full annual
leave entitlement. For this purpose, holidays are included as working days. Employees that do not
meet with this threshold are entitled to one vacation day for every 20 days of actual work.
The statutory annual leave entitlement accrued by an employee during a calendar year must in
principle be granted by the employer in a single block in the period between 1 October in that year
and 30 April in the following year (the public labor authorities may authorize the granting of leave at
some other time of year, if this is required by the particular nature of the employer’s activity).
However, the employer and employee may agree that the leave be taken in several shorter blocks
and at any time of the year. Further, by agreement between the employer and employee, an

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employee may carry over up to one-third of his or her annual leave entitlement from one calendar
year to the next.
An employer must inform employees in writing of the dates of their annual leave at least 45 days in
advance. If the employer fails to notify in advance, the employee can take the leave when he or she
chooses, but in all cases by 31 May in the year after the calendar year to which the leave entitlement
refers.
Vacation pay is calculated in such a way that it is somewhat higher than the remuneration that an
employee would receive for working over the equivalent period. For example, for monthly paid
employees, their holiday pay is calculated as 4% of their monthly remuneration (at the time of taking
the leave), multiplied by the number of calendar days of annual leave. This generally translates to a
holiday pay premium (above the normal rate of remuneration) of around 20%.
For the purposes of calculating holiday pay, as well as basic pay, employees’ remuneration includes
additional elements such as overtime pay and seniority increments.
Employees must be paid their holiday pay for the whole period of leave at the start of their annual
leave.
Employees can carry forward up to one-third of their vacation entitlement to the next year. Any
unused leave in excess of this is forfeited at the end of the year. At termination, employees are
entitled to a payment for accrued and outstanding vacation entitlement. Employees cannot accept
compensation in lieu of unused leave except on termination of employment.
National holidays
In general terms, work on national holidays is prohibited. There are 16 national holidays, including
tourist holidays decided by the government (ie, 1 January, 3, 4 and 24 March, 2 and 18 April (Good
Friday), 1, 2 and 25 May, 20 June, 9 July, and 8, 25 and 26 December). The law further provides that
some defined holidays are to be granted on a Monday or Friday. In addition, for certain holidays, the
government may also extend the term with one additional day for tourist purposes. From time to time,
National Congress also establishes a certain date as a holiday to remember a historical event. Finally,
the law also authorizes employees to take paid leave for religious reasons. However, in the cases
where employees are authorized to work, employees are entitled to an additional 100% compensation
based on their regular hourly rate, as discussed at 6.2. In addition, certain holidays may be granted to
the employees at the employer’s sole discretion (for example, Holy Thursday). Further, there are
certain holidays that apply only to members of certain religions. Members of the Jewish faith are
entitled to four days’ holiday for Passover, two days for Rosh Hashanah and one day for Yom Kippur.
Members of the Muslim faith are entitled to one day’s holiday each for Hegira, Eid al-Fitr and Eid al-
Adha. Finally, CBAs may provide for a commemorative holiday for the industry.
6.11 Sick leave and pay
Employers must bear the cost of medical leave that is not related to work. The paid leave of absence
may be due to an illness or an accident.
The amount of paid leave is based on the employee’s years of service and his or her family
obligations as follows:
• employees with less than five years of service and no family burden — three months
• employees with five or more years of service or with dependants — six months
• employees with five or more years’ service and with dependants — 12 months

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Employers have the right to control, to validate, or to question the validity of the alleged impediment to
work, including the certificate issued by the employee’s physician.
Employees who are unable to return to work after their leave expires for physical or mental reasons
are entitled an additional 12 months’ unpaid leave during which time their employers must keep the
employee’s position open. If the individual does not subsequently return to work, the employer may
terminate the employee’s employment without paying severance. If a total disability of work capacity is
certified, the employee shall be entitled to a severance payment as if he/she were dismissed without
just cause.
Partially disabled employees must be accommodated with work in accordance with their work
capacity or be given severance as though they were dismissed without just cause. If the employer can
prove that no proper position or task fits with such employees’ work capacity, the severance
entitlement is only half the normal amount.
Occupational accidents or illness causing temporary or permanent disability are covered under the
workers’ compensation system — see 12.3 for more information.
6.12 Taxes and social security
Employees’ salaries are subject to social security payments. Both employers and employees must
contribute to the social security system. Employers must pay their contributions and must also
withhold the employees’ contributions from their salaries. Currently, employers’ contributions depend
on their activity and turnover amount: (i) 27% if the employer is engaged in the provision of services or
in commercial activities and the invoiced amount exceeds ARS 48 million; and (ii) 23% for the rest of
employers. Please note that there is a judicial debate over this amount, as some courts have
accepted adjustments to this, while the tax office refuses to do so.
The table below sets out employers’ and employees’ contribution rates.
Concept
Employees’
contribution
Employers’ contribution
SIPA (in %)
Commerce and services that
invoice more than ARS 343
million (in %)
Remaining activities
(in %)
Retirement and pension 11 12.71 10.17
Medical benefits for
retired employees
3 1.62 1.50
Family allowances --- 5.56 4.44
Unemployment fund --- 1.11 0.89
Medical coverage 3 6 6
TOTAL 17 27 23
Workers’ compensation insurance premium is not included in the above-mentioned contribution rates.
This premium must be paid by employers only. The premium is agreed and depends on the type of
work in which the employer is involved. Employees’ contributions to the retirement system amount to
17%, including retirement fund, medical benefits for retired employees, healthcare insurance and
medical coverage. When calculating the social security contributions, there are “legal ceilings” or

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“caps” to be applied to an employee’s gross monthly salary. The portion of the employee’s monthly
salary exceeding the cap is not subject to social security contributions. The ceiling to calculate the
employee’s contribution to the retirement fund, medical benefits for retired employees, healthcare
insurance and medical coverage changes twice each year. For the purposes of calculating any other
employer’s social security contributions, no legal ceiling applies.
Employers are also required to take out a collective life insurance policy for employees, meeting
statutory standards in terms of the benefits payable. Some collective bargaining agreements also
oblige employers to take out additional cover.
Income from employment is subject to income tax. An employer is required to deduct the income tax
due from an employee’s pay at source and pass it on to the tax authorities. Income tax is progressive,
with seven tax bands, ranging from 9% to 35%. Income tax is levied on remuneration after the
deduction of social security contributions.
7 Family rights
7.1 Time off for ante natal care
Pregnant employees are entitled to a leave of absence for medical care before childbirth.
7.2 Maternity leave and pay
As a general rule, pregnant employees must not work in the 45 days prior to their expected date of
childbirth, and in the 45 days after the birth. However, they may choose to reduce the period of
prenatal leave to a minimum of 30 days, and to add the prenatal leave not taken to the 45-day post-
natal period of leave entitlement. Further, in the event of the child being born before the expected
date, the amount of prenatal leave not taken is added to the period of post-natal leave. In all cases,
the minimum total period of maternity leave is 90 days (ie, three months).
During this leave, the employee is not entitled to be paid by the employer but receives a social
security benefit from the social security system equivalent to her normal remuneration.
The employee must inform the employer of her pregnancy and expected date of childbirth and provide
a medical certificate.
If an employee is dismissed in the period from seven and a half months before childbirth until seven
and a half months afterwards, it will be presumed that she has been dismissed on the grounds of her
pregnancy or maternity, unless it is proven otherwise. This applies if the employee has notified the
employer of the pregnancy and birth. If an employee is dismissed on the grounds of pregnancy or
maternity, the employer must pay the employee a special indemnification of one year’s remuneration,
in addition to the normal severance payment due for a dismissal without cause.
Upon the expiry of maternity leave, employees have to decide whether to:
• return to work (with a right to reduce the work day by one hour to attend to the new-born)
• take up to six months (non-compensated) additional maternity leave, in which case employers
must reinstate the employee once this leave expires
• resign and obtain a special farewell bonus equivalent to 25% of the mandatory severance pay
7.3 Paternity leave and pay
Fathers are entitled to two days’ paid leave following childbirth.

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7.4 Adoption leave and pay
Currently, there is no statutory entitlement to adoption leave. Nevertheless, recently, some legal
cases have resulted in employees being entitled to maternity and paternity leave when they adopt a
child, sustaining the view that adoption is equivalent to the birth of a child.
7.5 Other family rights
There is a presumption in favor of married women that any termination of their employment three
months prior to or six months after their marriage is due to their marriage, unless the employer can
prove otherwise. Women who are discharged on the basis of their marriage are entitled to one year of
compensation, in addition to the ordinary termination severance package.
A parent is entitled to a non-paid license or leave to attend to his/her child. Some CBAs provide that
this leave is paid.
8 Other types of leave
The law provides for certain short-term paid leaves of absence. CBAs may also provide for additional
days of leave.
8.1 Time off for dependants
Employees are entitled to paid leave as follows:
• death of a spouse, child, father or mother — three calendar days
• death of a brother or sister — one calendar day
8.2 Time off for education and training
For a high school or university examination employees are entitled to two calendar days’ paid leave
per examination, with a maximum of 10 calendar days per year. In order to grant this leave, the exam
to be taken must derive from officially approved curricula, or those authorized by the competent
provincial or national authorities.
8.3 Works council and union representation
Employees elected as union stewards (or delegates) are entitled to a number of hours of paid leave,
in accordance with the applicable CBA, so that they can go to the union or to the labor board and
exercise their representative function.
Those who are elected to sit on a union representative body, and need to leave their work in order to
fulfil said duties, are entitled to a leave without payment, and to be reinstated upon expiry of the
representation. The period of leave is considered working time for seniority purposes.
8.4 Public duty leave
Employees who are called to render testimony before a judicial court are entitled to the corresponding
paid leave of absence (those who must attend a public office to comply with a required filing are also
entitled to paid leave).
Those who are elected to sit on a representative body (whether municipal, provincial or at national
level) are entitled to leave without payment, and to be reinstated upon expiry of the representation.
The period of leave is considered working time for seniority purposes.

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Those who are called to serve for military purposes are entitled to leave without payment, and to be
reinstated upon expiry of the representation. The period of leave is considered working time for
seniority purposes.
Volunteer fire-fighters are entitled to paid leave in accordance with the length of the assignment. In
Argentina this activity may be performed as a public service, and as such, employers must accept it,
as well as paying salaries for such leave. Employers are entitled to receive compensation from the
authorities for such payments.
All amateur athletes who, as a result of their activity, are selected to participate in selective regional
championships, may have a special sports leave, in order to prepare and participate.
Foreign nationals who come from a bordering country of Argentina are entitled to up to four days’
leave.
Employees are entitled to one day of leave for blood donation (and 36 hours in the case of special
procedures).
8.5 Marriage
Married employees are entitled to 10 calendar days’ paid leave.
8.6 Accidents and diseases not related to work
Please refer to 6.11.
8.7 Disciplinary suspension
Employers are entitled to apply disciplinary measures proportionate to an employee’s misconduct or
omissions. The main types of disciplinary sanction available include warnings, suspension and
dismissal. Employers must not impose fines on employees or deduct fines from their remuneration, or
modify an employee’s employment contract as a disciplinary sanction. An employee can challenge
any disciplinary measure in court and seek to have it overturned or replaced by a lesser sanction.
An employer is permitted to suspend an employee for serious disciplinary reasons. The employer
must notify the employee of the suspension in writing. The maximum period of suspension for
disciplinary reasons is 30 days in any one-year period. Disciplinary suspension must in any event be
proportionate to the employee’s misconduct.
The employer is not required to pay the employee during the period of suspension. However, the
employee can challenge the suspension in court, on the grounds that it is not justified, was not notified
correctly or exceeds the maximum permissible duration. If the employee’s challenge is successful, he
or she is entitled to be paid for the whole period of suspension.
If a suspension exceeds the maximum permissible duration, the employee is not obliged to accept the
suspension and is entitled to consider that he or she has been dismissed without cause (the
employee is also free to challenge the suspension in court, seeking to be paid for the whole period of
suspension — see previous paragraph).
Eventually, the employer may terminate the employment contract with “just cause” on the grounds of
the employee’s misconduct.

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9 Termination provisions and restrictions
9.1 Notice periods
9.2 Payment in lieu of notice
If the employer/employee does not provide the other party with adequate notice (see 15.5), the
employer/employee must pay the other party in lieu of such omitted notice. This will be an amount
equal to one half, one, or two salaries, as the case may be. The salary to be calculated for this
payment is the salary that the employee would have received had he or she worked during such
period.
When employees have gone past the probationary period and employers fail to provide notice, the
payment in lieu of notice includes the remaining days of the current month, so that the notice starts
from the first day of the subsequent month. This pay is called “integration of the month of dismissal”.
Employers often terminate the relationship near the end of the month in order to avoid this integration
of the month of dismissal.
Finally, when employers make the payment in lieu of the advance notice (including the integration),
they must also calculate the pro-rated portion of the 13th salary by adding 8.33% to the payment in
lieu of notice.
Typically, employers do not provide prior notice and make a payment in lieu of notice. This payment is
subject to income taxes and is not subject to social security contributions or withholdings.
9.3 Garden leave
Employers cannot impose garden leave, as their duty is to provide adequate tasks for their
employees. However, they can agree with employees that they take paid garden leave.
Employers are only allowed to suspend the relationship without pay, or with a non-remunerative
payment, in emergency situations.
9.4 Intellectual property
Employee inventions are regulated by employment law and also by the Patents and Utility Models
Law.
The law establishes that those inventions or discoveries personally made by employees are their
property, even when they used instruments that did not belong to them. Employers have a right of
preference or first refusal when employees who own a right to an invention or discovery decide to
assign it to a third party.
Employers are entitled to ownership of employee inventions or discoveries when the invention or
discovery:
• resulted from the application or use of the employer’s industrial processes, method or
equipment
• is a direct consequence of experiments, investigations or improvement conducted at the
employer’s premises
• was obtained by employees hired for the purpose of inventing or discovering

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The Patents and Utility Models Law stipulates that employers are entitled to inventions developed by
employees hired for that purpose; however, the inventing employees may be entitled to
supplementary remuneration for their achievement. The general requirement is if the employees’
personal participation in the invention and the importance of this invention clearly exceeds the explicit
or implicit purpose of his/her employment.
Employers also have the right to claim the property or to reserve the right to exploit the employees’
invention, provided that:
• it was obtained as a result of their job with the employer
• it is mostly attributed to the knowledge obtained from or resources provided by the employer
• the employees have not been hired for inventive purposes
Employers must submit their claim to the employee within 90 days after the invention has become
public and/or the employers have become aware of the invention. If employers fail to claim the
invention property in due course, the property of the invention shall belong to the employee. When
employers claim for property or reserve the right to exploit the invention, employees are entitled to a
fair economic compensation, fixed in accordance with the industrial and/or commercial importance of
the invention, considering their participation and the knowledge provided by their employer to achieve
this invention.
If employers license the invention to third parties, the inventors can claim a payment of up to 50% of
the collected royalties. An industrial invention shall be considered as developed during the
employment relationship, when employees file the application of ownership for the invention (patent)
within one year after termination of their employment, however caused. Employees are legally
restricted from waiving their rights to inventions and discoveries in advance of the actual invention or
discovery being obtained.
9.5 Confidential information
An employee’s duty of confidentiality is part of the general duty of loyalty owed to his/her employer.
The duty extends to all the company’s business secrets, such as technical know-how, customer and
supplier lists, prices, etc.; but anything that is known to the public cannot be a business secret.
Under employment law, employees must not disclose any kind of information that is required to be
treated as confidential and secret. In general, this covers information that is generally unknown in the
industry, that gives the employer a competitive advantage by virtue of its secrecy, and that is subject
to reasonable secrecy measures. Both technical and non-technical information may be deemed a
trade secret; therefore, materials such as computer source codes, specialized machinery,
manufacturing processes, overseas customer or supplier identities, payroll data, and compilations of
information may merit protection.
If an employee breaches the obligation of confidentiality, an employer is often allowed to terminate the
employment contract, with justified cause.
Furthermore, there is a specific law that protects the confidentiality of information. In order to be
protected, the law requires that certain conditions are met, and if the information meets these
conditions, the employee’s obligation continues upon leaving the company. The conditions are that
the information:
• is secret, in the sense that it is neither generally known nor may it be easily obtained by the
individuals regularly using said kind of information
• has trade value by virtue of being kept secret

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• is subject to reasonable measures, under the circumstances, to be kept secret
The employment contract can provide for a stricter duty of confidentiality. During the period of
employment, the employee’s duty of confidentiality can, for example, be extended to items that are
not business secrets as such, eg, disclosing employees’ salaries. If a confidentiality clause has the
effect of a post-contractual non-competition covenant, it will be valid only if it meets the requirements
for the validity of such a clause.
9.6 Post-termination restrictions
The duty not to compete or engage in any unfair competition during the course of employment is part
of an employee’s general duty of loyalty to his/her employer. In general, the duty not to compete is
extinguished by termination of the employment relationship.
However, the inclusion of a non-compete obligation for a brief period after termination of employment
is valid provided that fair compensation is provided for this after employment ends.
9.7 Retirement
Employees with at least 30 years of social security contributions are generally entitled to a state old-
age pension from the age of 60 in the case of women and 65 in the case of men (although in some
circumstances, individuals may obtain entitlement at an earlier age).
Employees are not automatically obliged to retire when they reach retirement age and meet the
contribution requirements for a state old-age pension. However, the employer is entitled to request
that such employees start the proceedings necessary to obtain a pension, by submitting the
necessary certificates and documentation to the relevant authorities. Women are entitled to continue
to work until the age of 65, if they so choose, and in such cases cannot be requested to apply for a
pension before this age.
An employer’s request that an employee start applying for a pension serves as notice of termination to
the employee (see 15.5). From the date that the employer makes this request, it must continue to
employ the employee (unless it dismisses the employee on grounds not related to retirement, in which
case the normal rules on dismissal with or without just cause apply (see 15.1)) until the employee is
granted the pension, which can take up to a maximum of one year. The statutory notice period is
considered to be included in the period during which the employer is obliged to continue employing
the employee. Upon obtaining retirement benefit, or the expiration of the one-year term — whichever
occurs first — the employee’s contract terminates automatically by operation of the law and the
employee is not entitled to any severance payment (see 15.9).
Where an employee who meets the requirements for a pension decides to retire without being
requested to do so by the employer, the employee’s contract terminates automatically by operation of
the law and the employee is not entitled to any severance payment.
10 Managing employees
10.1 The role of personnel policies
Employers may establish any type of company rules as long as these comply with the applicable laws
and do not infringe individual employment contracts or any applicable CBAs. There is no legal
requirement to consult with union stewards.
Disciplinary policies, including disciplinary sanctions, are not governed by statute or CBAs. There is
also no legal requirement to consult with union stewards about personnel policies.

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10.2 The essentials of an employee handbook
Work rules, handbooks or employment policies are not required by law.
It is recommended to have the following work rules in place: matters relating to health and safety,
absences, vacation, working hours, incentive compensation, use of company property, confidential
information, company expenses, codes of business conduct and ethics, etc.
10.3 Codes of business conduct and ethics
Employers should include this code among the work rules (see 10.2).
11 Data privacy and employee monitoring
Please refer to our Global Privacy Handbook, which is accessible HERE, for information on data
privacy and monitoring requirements.
12 Workplace safety
12.1 Overview
Employers must implement appropriate health and safety measures to protect employees’ lives and
integrity, and have numerous specific statutory health and safety obligations in place. Consequently,
those who breach health and safety legislation may be fined by the public labor authorities.
Employers must insure all employees against occupational accidents and illnesses, generally with an
occupational risks insurer of the employer’s choice.
A specific law dealing with hygiene and safety at work provides the general framework, setting out
standards and obligations on employers and employees, in order to have a safe work environment.
The law requires employers to conduct pre-hiring and periodical medical examinations for each
employee. However, medical screening and testing can be done only to evaluate the natural ability of
the candidate or monitor the current employee’s qualification for the job and cannot be used to
discriminate against the candidate or employee. The regulations set out the minimum medical tests to
be taken by candidates and employees.
Furthermore, there is a specific law dealing with occupational risks and mandatory insurance against
occupational accidents and illnesses, which gives occupational risks insurers an important role in
monitoring and promoting health and safety at the workplace.
12.2 Main obligations
Employers are obliged to adopt and implement appropriate health and safety measures to protect
employees’ lives and integrity.
Among others, the main specific health and safety obligations on employers are to:
• maintain all machinery, equipment, installations and tools, as well as the electrical and water
supply, in good working order
• insure all employees against occupational accidents and illnesses with insurance companies
especially dedicated to this business, known as “Aseguradoras de Riesgos de Trabajo”
(“ART”)
• provide occupational health services (see below)
• provide “hygiene and safety at work” services (see below)

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• record and report occupational accidents and illnesses
Employers must pay the ART an insurance premium, which varies depending on the degree of risk
involved in their activity.
Employers must engage occupational health services, and “hygiene and safety at work” services, with
the aim of preventing any damage to employees’ lives and health caused by their working conditions.
Prior to employment, all employees must undergo a medical examination and be certified as fit for the
work concerned. During employment, employees must receive medical examinations on a regular
basis and when their work duties change, or when they return from long-term absence.
The ART plays a very important role, including carrying out the following functions:
• giving advice to the employer on the prevention of labor risks
• supervising and monitoring the employer’s prevention policy
• providing medical attention to employees who suffer a work related accident or illness
• paying insurance compensation
The ART also promotes risk prevention, provides advice to employers, and maintains a register of
each establishment’s occupational accident and illness record. The ART monitors employers’
compliance with health and safety rules, and is entitled to access the information required for this
purpose. The ART is required to report breaches to the public authorities.
There is no general statutory requirement for employers to appoint safety representatives, and no
statutory entitlement for employees to elect or appoint such representatives.
Provincial governments have responsibility for enforcing employment laws and hygiene and safety
laws within their jurisdictions. The National Ministry of Labor acts as a supervisor, with the authority to
inspect when the provincial authority fails to adequately enforce the employment and hygiene and
safety laws.
In addition, there is an office in charge of supervising the work of the insurers, which reports to the
Federal Ministry of Labor, Employment and Social Security, which also has the responsibility for
monitoring compliance with legislation on health and safety and occupational accident and illness
insurance by employers and insurers.
12.3 Claims, Compensation and remedies
For insurance purposes, occupational accidents are defined as sudden and violent events that occur
because of, or in the course of work (or even on the journey between the employee’s home and the
workplace and back). Occupational illnesses are those listed in an official register.
Employees who are absent from work owing to an occupational accident or illness are entitled to
receive their full normal remuneration until they recover or are medically certified as having a
permanent disability. For the first 10 days of any such absence, the employer is responsible for paying
the employee. From the 11th day of absence, the ART takes over this responsibility.
If not otherwise certified as permanent beforehand, a disability is presumed to be permanent once it
has lasted more than one year. When an employee is certified as having a permanent disability, he or
she is entitled to a lump-sum payment from the ART.
In the case of permanent total disability (defined as a loss of capacity of at least 66%), the lump sum
is calculated as 53 times the individual’s former monthly remuneration, multiplied by a coefficient. This
coefficient is derived by dividing 65 by the employee’s age at the time the disability occurred.

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In the case of permanent partial disability, the individual is entitled to a reduced lump sum
proportionate to the degree of loss of capacity.
On top of the lump-sum payment outlined in the previous paragraph, individuals certified as having a
permanent disability as a result of an occupational accident or illness suffered at the workplace or
while at the employer’s disposal are entitled to an additional payment of 20% of the lump sum to
which they are entitled (see below).
The ART is also obliged to cover, in cash or in kind:
• medical, pharmaceutical and orthopedic treatment and care, and prosthetics
• rehabilitation and vocational retraining
• care allowances
• survivors’ benefits
• funeral costs
Although the Workers Compensation Law established that employees could only resort to the
compensation foreseen in the law, which prevented them from filing a civil suit, the Supreme Court of
Justice has held this to be unconstitutional. This was on the basis that it impliedly deprives employees
from being fully compensated for the damages they have suffered (they were basically prevented from
seeking lost profits and damages due to emotional distress).
In order to change this situation, a recent law amended the Workers Compensation Law and
established that when the damage occurs in the workplace, the injured worker will be entitled to
receive an additional single payment (in addition to that explained above) for any other damage which
may not have been adequately remedied, equivalent to 20% of the amount received. In the case of
death or total disability, this additional compensation will never be less than ARS 159,430.
13 Employee Representation, Trade Unions and Works
Council
Please refer to our Handbook — The Global Employer focus on Trade Unions and Works Councils,
which is accessible HERE, for information about this subject in Argentina.
14 Discrimination
14.1 Who is protected?
The Constitution has several provisions relating to this matter, which set out the following: (i) all
citizens are equal under the law; (ii) equal pay for equal work; and (iii) equal access to employment,
subject only to an employee’s suitability for the position. Furthermore, the Constitution incorporates
certain international human rights treaties to the rank of constitutional rights, many of which refer to
the non-discrimination principle.
The courts have held that the equal treatment rule should be understood as equal rights under the
same circumstances, and that judges have the authority to decide under the principle of reasonability
when equal or different circumstances exist.
The Constitution sets out a procedure to obtain an immediate solution when a constitutional right is
jeopardized, including any kind of discrimination. Finally, the Constitution authorizes Congress to pass
laws that include positive actions that assure the equal rights, opportunities and treatment.

Baker McKenzie | 22
A federal law specifically prohibits any discriminatory practice, which includes discrimination based
not only on race, religion, nationality, ideology, political affiliation, union opinion, sex, marital status
and genetic factors but also on economic standing, social condition and/or physical characteristics. In
addition, there are specific laws that address protection against discrimination due to certain diseases,
such as diabetes, AIDS and epilepsy.
Employment law also contains an anti-discrimination principle under which employers cannot force
employees to declare their opinion about political, religious or union issues. Employers must treat their
employees equally, and ensure that there is no violation of the principle when employees are treated
differently based on their productivity, attitude towards work, etc.
14.2 Types of discrimination
Discrimination includes the following:
• Direct discrimination, ie, when a person falling within the protected category is treated less
favorably than another person in a comparable situation.
• Indirect discrimination, ie, when an apparently neutral provision, criterion or practice would put
one person having a particular religion or belief, a particular disability, a particular age or a
particular sexual orientation at a particular disadvantage compared with other persons without
these particular characteristics. For example, the criterion of “professional experience” may
indicate an indirect discrimination due to age. Discrimination may only be justified if the
employer can refer to a justifying reason, eg, if the respective characteristic is indispensable
for the work to be performed.
• Harassment, ie, behavior injuring the dignity of employees in the work place. Among the
possibilities of work harassment, employees may suffer bullying or sexual harassment.
Although harassment is usually carried out by someone superior to an employee, courts have
also accepted cases from work colleagues or subordinates.
There is no special employment regulation dealing with harassment in the private sector. This lack of
regulation is filled by the application of general principles of civil and labor law.
Employment law provides that employers must ensure the health and safety of their employees in the
workplace, which includes avoiding situations in which certain employees may affect other employees’
mental health, offend them or affect their dignity in any way.
There is no specific statutory protection from dismissal for employees who bring legal action against
their employer for discrimination, or make a complaint of discrimination. However, if the employer
discharges an employee based on discriminatory grounds, said employee could request the
protection of the court and obtain a reinstatement order.
14.3 Special cases
14.3.1 Disability discrimination
Public employers and private companies providing public services must ensure that at least 4% of
their workforce is made up of people with disabilities. In general terms, employers who hire people
with disabilities may obtain certain tax or social security benefits.
The law also provides that employers must make accommodations and provide an adequate job for
employees who become disabled during their employment. If employers fail to comply with this
obligation, affected employees are entitled to terminate their employment and receive full severance.
If employers cannot make accommodations and provide an adequate job, severance is reduced to
one half.

Baker McKenzie | 23
Otherwise, the law does not generally oblige or permit employers to take measures that give
preference to people from under-represented or disadvantaged groups.
14.4 Exclusions
14.4.1 Occupational requirements
In certain circumstances, an employer can seek to rely on the occupational requirement exception,
under which it is lawful for an employer to require a job applicant or worker to have (or not have) a
particular protected characteristic, provided certain conditions are met.
A difference of treatment does not constitute discrimination where, by reason of the nature of the
particular occupational activities or of the context in which they are carried out, such grounds
constitute a genuine and determined occupational requirement, provided that the objective is
legitimate and the requirement is proportionate.
By law, women and children are excluded from arduous, dangerous or unhealthy work.
14.4.2 Grounds of religion or belief
A difference of treatment on the grounds of religion or belief of employees of a religious community,
facilities affiliated to it (regardless of their legal form) or organizations which have together undertaken
to practice a religion or belief, does not constitute discrimination where such grounds constitute a
justified occupational requirement for a particular religion or belief, having regard to the ethos of the
religious community or organization in question and by reason of their right to self-determination or by
the nature of the particular activity.
Specific exceptions also apply in relation to sexual orientation, sex, gender reassignment, marriage
and civil partnership status in the context of employment for the purposes of an organized religion and
in the context of work of a particular ethos or nature based on a religion or belief.
14.4.3 Exceptions relating to age
A difference of treatment on the grounds of age does not constitute discrimination if it is objectively
and reasonably justified by a legitimate aim. The means of achieving that aim must be appropriate
and necessary. Such differences of treatment may include, for example, setting minimum age
conditions or setting a maximum age for recruitment which is based on specific training requirements
of the post in question or the need for a reasonable period of employment before retirement.
14.5 Employee claims, compensation and remedies
Employees who are discriminated against may claim to be reinstated; claim unpaid salary; seek
additional compensation for pain and suffering; or claim constructive dismissal (see 15.3).
The law provides specific protection for pregnant women (see 15.8.2); recently married women (see
15.8.3); and union stewards (see 15.8.5).
Currently, there is an important judicial trend of reinstating employees who have allegedly been
discharged due to their activism, ideology, political or union affiliation.
14.6 Potential employer liability for employment discrimination
Employers are liable for the discriminatory acts of their employees or agents, even if the
discrimination occurs without an employer’s knowledge or approval.

Baker McKenzie | 24
As mentioned at 14.5, the employee may claim compensation for salary and suffering. The employer
should therefore take measures to avoid its employees being subjected to discrimination in the
working environment.
14.7 Avoiding discrimination and harassment claims
An employer is obliged to protect its employees from discrimination and to take pre-emptive actions. It
is therefore advisable for an employer to train its employees to help prevent them from discriminating
against others in the working environment.
It is also advisable for an employer to have some sort of internal mechanism for the reporting,
investigation and resolution of conflict within the work place, including discrimination and harassment
issues.
Should an employer be able to show that it took all proper measures to prevent discrimination or
harassment or to punish those who carried out such acts, it can bring a claim against the perpetrator
of the discrimination or harassment, demanding him or her to be a co-defendant. The employer may
also demand that the perpetrator is held personally liable for his/her actions and that he/she should
reimburse the employer for any amount it had to pay to the victim.
15 Termination of employment
15.1 General overview
The employment relationship may be terminated by mutual consent, such as by separation
agreement; by expiration of a fixed-term contract; due to death, retirement or total disability; or by
decision of one of the parties, which is the most common way to terminate employment.
Except in certain circumstances, there is no legal impediment on an employer to dismiss an employee
without cause, although employers are required to give notice or a payment in lieu of notice and pay a
severance package based on years of services.
In certain cases of dismissal without “just cause,” employees are entitled to both a statutory
severance payment and additional compensation from the employer — for example, for claims related
to pain and suffering.
In other cases, employees may demand an additional payment due to the irregular registration of their
hire date or remuneration.
Collective redundancies due to a crisis may require an employer to go through a special procedure.
Special rules govern termination while employees are on paid sick leave, or still unable to work after
the paid leave ends.
When employees reach retirement age (generally 65 for men and 60 to 65 for women), assuming that
they have met the contribution requirements for a state old-age pension, the employer is entitled to
initiate a procedure to terminate their employment within one year — see 9.7.
Some employees have special protection against dismissal — see 15.8.
15.2 By the employer
Without cause termination
Except in the case of discrimination (whereby an employee may demand to be reinstated) and in the
case of protected employees (see 15.8), employers are legally entitled to terminate any employment

Baker McKenzie | 25
relationship at any time without just cause, and pay a statutory severance package. The particular
protection against employment discrimination is discussed in 14 above.
There are certain exceptions to an employer terminating an employee without penalty. These
exceptions include the following:
• Probation period: During the first 90 days of employment, employers may dismiss their
employees without just cause, with 15 days of prior notice and without the need to pay any
further payment and/or severance indemnity. If employers do not observe the prior notice,
they have to pay one half of the employee’s monthly salary in lieu of notice.
• Fixed-term contracts: The prior termination of fixed-term contracts requires just cause. In case
of normal termination of a fixed-term contract exceeding a one-year term, the employee will
be entitled to 50% of the indemnity for seniority payable under an indefinite term to
employees who are terminated without just cause. The normal termination of a fixed-term
contract for less than a one-year term does not require severance. Employers are required to
give notice to employees that the contract is expiring due to reaching its term.
• Contingent — temporary contracts: The termination of these contracts requires just cause.
Upon the normal termination of the contract, by the completion of the service or work, the
employee will not be entitled to a severance indemnity.
In cases where a fixed-term or contingent contract is terminated without just cause, the employee will
be entitled to the regular severance of an indefinite-term employee, plus damages, usually set as the
remaining salary until the end of the term of the contract.
With cause termination
Employers can only terminate employment without having to pay severance when they have just
cause to terminate the employee. Employers will have just cause when an employee commits an
offense so serious that it is impossible to continue with the employment relationship. A serious offense
may include theft of the employer’s goods, seriously insulting a superior, or an employee’s breach of
his or her duty of loyalty. The activities that may be considered offensive or prejudicial to the employer
are determined according to the general principles of law and legal precedents. The courts require
employers to act with caution and to evidence that they attempted, whenever possible, to preserve the
relationship by taking prior measures, such as disciplinary measures, in order to correct the improper
behavior.
15.3 By the employee
An employee can resign from employment by giving their employer the required 15 days’ statutory
notice, or contractual notice (if longer). Failing to do so is a breach of contract, although an
employer can waive its right to receive due notice of termination, ie, accept a shorter, or indeed, no
period of notice.
An employee can leave without giving 15 days’ notice where he or she can show that he or she was
entitled to do so by virtue of the employer having committed a serious breach of contract (often
called “constructive dismissal”). The employee must notify the employer of the situation and request
that it be resolved prior to him or her terminating the relationship through constructive dismissal.
An employment contract may also be terminated by mutual agreement between the employer and the
employee. Such separation agreement must be entered into before a notary public or the Labor
Board. A separation agreement is not subject to the restrictions which have to be considered in the
case of a unilateral termination by the employer and, as a general rule, no approval of a third party or
of any authority has to be obtained. However, there have been many cases under which employees
later challenged the validity of the separation agreement, arguing that they signed the agreement

Baker McKenzie | 26
without proper counsel or under duress, and that they had no real intention of leaving their
employment, therefore demanding full payment of the statutory severance.
15.4 Employee entitlements on termination
In general terms, when an employee is dismissed for just cause or resigns, the employer is only
required to pay the accruals to said terminated employee (ie, the salary owed on account of the days
worked in the month of termination; accrued proportional vacations; and accrued 13th month salary).
The employer does not have to pay any severance.
When an employer terminates an employee without just cause or an employee successfully claims
that he or she has been constructively dismissed, the employee is entitled to salary owed on account
of the days worked in the month of termination, accrued proportional vacations, accrued 13th month
salary and severance (see 15.9).
An exception may apply to traveling salesmen, who are entitled to a clientele severance, regardless of
the cause of their termination, after one year of service. This compensation is defined in the statute as
the equivalent of 25% of the amount that the employee would receive as termination without just
cause.
Another exception is the case of recent mothers, who may opt to resign and receive the equivalent of
25% of the amount that the employee would receive as termination without just cause.
15.5 Notice periods
Employers have an obligation to give prior notice of termination to employees who are dismissed
without just cause, in accordance with the following guidelines:
• employees undergoing probation are entitled to 15 days’ advance notice of the termination of
their contract, or to a payment in lieu of notice of one half of the employee’s monthly salary
• employees whose seniority ranges from three months to five years must receive the
termination notice one month in advance of their dismissal
• employees whose seniority exceeds five years must receive the termination notice two
months in advance of their dismissal
If employers provide notice, employees are entitled, during the aforementioned term, to receive a paid
daily license of two working hours (which may be accumulated in one or more working days) in order
to look for another job.
Employees must give their employers 15 days’ advance notice of termination. The notice must always
be given in writing.
15.6 Terminations without notice
15.7 Form and content of notice termination
The employer must provide the employee with a written termination notice, or send a telegram or
equivalent formal document.
When the termination is with cause, the reason needs to be clear and detailed, and cannot be
changed or added to afterwards.
Employees must evidence their resignation by sending a telegram.

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