Opening A Business In Argentina

• Published date: 15 June 2023
• Subject Matter: Corporate/Commercial Law, Employment and HR, Tax, Corporate and Company Law, Contract of Employment, Employee Benefits & Compensation, Tax Authorities, Shareholders
• Law Firm: L&E Global
• Author: Allende & Brea and Nicol's Grandi (Allende & Brea)

1. INTRODUCTION

In Argentina, a general employment labour law, complemented by additional laws and the applicable collective bargaining agreement, governs employment conditions.

Labour laws are very comprehensive and rule almost every term of the employment relationship. Labour laws are public policy and therefore, are mandatory. Employer is obliged to grant employees at least what is provided by labour laws. Therefore, employer can grant employees benefits on top of what is provided by those laws but cannot agree with employees in detriment of what is provided by those laws, nor can employee waive any right included in those laws.

Allende & Brea has a highly specialised labour team, that works to prevent legal disputes by giving preventive advice and, where the dispute has already arisen, we work on the defence throughout all the administrative and court stages of the proceedings.

We provide comprehensive day to day labour advice, drafting employment contracts and benefit plans and policies, identifying labour liabilities and risks, compensation calculation and its tax treatment, individual and collective dismissals, collective bargaining agreements, staff reorganisation processes, labour M&A, labour due-diligence processes, compliance, data protection, immigration and labour litigation, among others.

2. LABOUR AND EMPLOYMENT LAW REQUIREMENTS

a) Employer Policy Requirements

Companies that hire staff in Argentina must register those individuals as employees of a local company incorporated in Argentina. Labour laws require to register the employee in the company labour books and before the tax authorities, pay social security and taxes in respect to all salary payable to the employee, and prepare and deliver to the employee the correspondent salary slips.

Argentina labour laws set rules governing working conditions and working hours, providing for payment of salaries during illnesses and pregnancy, setting surcharges on salaries for overtime, establishing mandatory minimum annual paid vacations, and payment of severance compensation in the event of unfair dismissal (dismissal without justified cause). Employees are entitled to a 13^th salary, payable in two semi-annual instalments, each instalment equal to 50% of the highest monthly salary accrued in the correspondent semester.

Employers must pay hire compulsory life insurance for all employees, as well as insurance that covers employee's death, illness or disability in connection to work.

A minimum wage has...