Employment Law Overviews Argentina 2021-2022

• Published date: 03 September 2021
• Subject Matter: Employment and HR, Contract of Employment, Retirement, Superannuation & Pensions, Unfair/ Wrongful Dismissal, Health & Safety, Employee Benefits & Compensation
• Law Firm: L&E Global
• Author: Mr Nicol's Grandi (Allende & Brea)

I. General Overview

1. Introduction

Argentina's labour laws are remarkably comprehensive and regulate virtually all the terms and conditions of the employment relationship. Labour laws are public policy and are therefore mandatory. The employer is obligated to grant employees at least what is afforded to them under labour legislation. Hence, an employer can extend benefits on top of the standard provisions, but cannot agree to terms that are less favourable or otherwise detrimental to an employee, nor can an employee waive any known right or privilege established for his/her protection or benefit under the law.

2. Key Points

• Argentina's labour laws are pro-employee and have been designed to safeguard the rights of employees and workers, by instituting rules governing working conditions and working hours providing for payment ofsalaries during illnesses, setting surcharges on salaries for overtime, establishing annual vacations and requiring the payment of severance compensation in the event of unfair dismissal (dismissal without justified cause).
• Labour law in Argentina is comprised of public order provisions and thus cannot be ruled out, or waived by any agreement applicable law or jurisdictional clauses subsequently included in any agreements. Accordingly, Argentina's labour laws will apply – and the labour courts will have jurisdiction – with respect to any eventual labour claim filed with the courts related to work performed in Argentina.
• Employeesareentitledtoa13thsalaryorstatutory annual bonus called "aguinaldo" or "sueldo annual complementario/SAC", which is payable in two semi-annual installments, to be paid on 30 June and 18 December. Each installment is equal to 50% of the highest monthly salary accrued during the corresponding semester.
• Employers must pay a compulsory life insurance for all employees.
• The employer can only change the terms and conditions of employment, provided that those changes are not unreasonable and do not either
  • modify the essential terms of the employment contract; or
  • cause moral or material damage to the employee.

3. Legal Framework

• As labour laws are federal laws, the terms and conditions are standardised nationally.
• Labour Contract Law 20,744 (the "LCL"), together with any other complimentary legislation and applicable collective bargaining agreements, tailor the general provisions that govern the conditions of employment.
• Law No. 23,660, the Health Insurance Act, sets forth the measures necessary to establish...