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All about employing personell in Argentina

The payroll is one of the most important documents within a company in Argentina
All about employing personal in Argentina

 Labor relationships

Listed below are laws governing the employment relationship of the worker and the employer in the Argentine Republic. The relevant rules regarding labor law, its practical application, and additionally the laws in force regarding dismissal, work accident, pension system, retirement and pensions are also detailed. Rights and legal defense of the worker.
Laws Brief Description
Law 24.430: Argentine National Constitution Maximum law in Argentina
Law 20.744: Labor Contract Law The employment contract law establishes the rights and obligations of the worker and employer in Argentina. Determine the characteristics of the employment relationship.
Law 24.013: National Employment Law This law handles the following points:
The non-register Employment regularization.
Promotion and defense of employment.
Protection of unemployed workers.
Employment training and statistics National Employment, Productivity and Salary Council Minimum, Vital and Mobile.
Temporary unemployment benefit.
Compensation for unjustified dismissal.
Law 11.544: Labor Day Law This law establishes the workday.
Law 24.557: Labor Risks Act In its theoretical framework, it proposes the prevention of accidents at work and occupational diseases, in addition to assuring the appropriate worker medical attention in a timely manner, ensuring its restoration.
Law 25.323: Workers Compensation It is established that the compensation provided for by Law N ° 20,744 or those that replace them in the future, will be doubled in the case of an unregistered or deficient labor relationship.

Key Tax and Labor Authorities

Laws Brief Description
Ministry of Economy The Ministry of Economy of the Argentine Republic is one of the six agencies that are responsible for assisting the president of the Argentine Nation and the head of the Cabinet of Ministers, in economic policy, internal trade and economic, financial and fiscal relations with the provinces and the Autonomous City of Buenos Aires.
Production and Labor Ministry (Ministry of Productive Development) The Ministry of Productive Development of Argentina is the government agency responsible for designing and executing plans related to the promotion of the country’s industrial production, as well as foreign trade.
Federal Administration of Public Revenue (AFIP) The Federal Administration of Public Revenue (AFIP) is the agency responsible for the execution of the tax, customs and collection policy of social security resources of the Nation.

Labor Contracts in Argentina

There is an employment relationship when a person voluntarily and personally develops tasks for another natural person or company, under their dependency, receiving compensation in return. The Labor Contract Law presumes that if the above conditions are met, even if the parties – worker and employer – do not enter into a written employment contract, there will be an employment relationship, generating for both parties all the rights and obligations of established by law.

Types of contracts in Argentina

It is presumed that employment contracts have an indefinite term unless there is a specific legislation that indicates otherwise.
  Contract for an Indefinite time Article 99, Law 20744 The employment contract shall be deemed to be concluded for an indefinite period, unless its term results from the following circumstances: a) That the time of its duration has been set expressly and in writing; b) That the modalities of the tasks or activity, reasonably appreciated, justify it. The formalization of contracts for a determined period in successive form, which exceeds the requirements provided in section b) of this article, converts the contract into one for an indefinite period of time.
Contract for specific work or time Article 102, Law 20744 The fixed-term work contract will last until the expiration of the agreed period, and cannot be celebrated for more than five (5) years.
Season Contract Article 105, Law 20744 There will be a seasonal employment contract when the relationship between the parties, originated in permanent needs of the company or exploitation, is fulfilled at certain times of the year only and is subject to being repeated for a given period due to the nature of the activity.
Temporary Work Contract Article 108, law 20744 Regardless of its denomination, it will be considered to be an eventual work contract when the activity of the worker is exercised under the dependence of an employer for the satisfaction of concrete results. It will also be understood that such relationship mediates when the link begins and ends with the completion of the work, the execution of the act or the provision of service for which the worker was hired.

Basic Requirements

The information that the contract must contain is established in the Article 56 of the Law 20744.       a) Name of the worker.       b) Marital status.       c) Date of entry and exit.       d) Remunerations assigned and received.       e) Individualization of persons that generate the right to the perception of family allowances.       f) Other data that allow an exact evaluation of the obligations under their charge.

Payroll in Argentina

The payroll is one of the most important documents within a company, since there is a control of all the withholdings, by law and additional, of the salary of the employees. From this operation, the final amount that a worker will receive and the amount that the company will invest in a given period is obtained.

Law Benefits in Argentina

The additional benefits to which the worker becomes a creditor by belonging to a labor relationship, the benefits are born in the contractual relationship and will be independent of salary, they may consist of an economic, cultural, or medical nature, the law establishes mandatory benefits that every employer must grant to his employees, the others will be agreed mutually in the individual work contract. The role that labor benefits play is that they are always aimed at improving the living conditions of workers, reducing their expenses and granting them incentives that foster their cultural and social development.
Benefits Brief description 
Salary Article103, Law 20744 It is understood as the compensation that the employee must receive as a result of the employment contract. Said remuneration may not be less than the minimum wage. The employer owes the worker the remuneration, even if he does not provide services, simply because he has put his work force at his disposal.
Vacations Article 150, Law 20744 The worker will enjoy a minimum and continuous period of paid annual rest for the following periods:
1 – 5 years 14 days of vacation
5 – 10 years 21 days of vacation
10 – 20 years 28 days of vacation
Greater than  20 years 35 days of vacation
Vacation Bonus Article 16, Law 20744 The worker will receive compensation during the holiday period, which will be determined as follows, the employee will receive 25% of the salary for the days given. The remuneration corresponding to the holiday period must be paid upon its initiation of vacation period.
Supplementary Annual Salary (Christmas Bonus) Article 121 and 122, Law 20744 Supplementary annual salary is understood a 13th paid month, received by the worker in the respective calendar year. It will be paid in two installments: the first one on June thirty and the second on December thirty-first of each year.
Special Leaves Article 158 Law 20744 The worker will enjoy the following special leaves:
a) By birth of a child, two (2) calendar days
b) By marriage, ten (10) calendar days
c) Due to the death of the spouse or the person with whom he was united in apparent marriage, under the conditions established in this law; of children or parents, three (3) calendar days.
d) Due to the death of a brother, one (1) day
e) To take an exam in secondary or university education, two (2) consecutive days per exam, with a maximum of ten (10) days per calendar year.
The licenses referred shall be paid.

Employers Contribution

The employer contributions turn out to be those sums of money that the employer will be obliged to contribute to the state for having employees. They are not recoverable for the employer and turn out to be indispensable for employees since this covers part of what is paid to social security.
Contribution Brief Description
Social Security The social security contributions are those that the employer has the obligation to pay to the state, every month, as a work tax. This contributions are destined to retirement and pensions, Pami social work, family allowances, national employment fund and social work.
Argentine Integrated Pension System (SIPA) SIPA is the Argentine Integrated Pension System. It is the only retirement system that governs in Argentina after the elimination of the AFJPs. This is mandatory for all workers in dependency and non-dependent relationships. That is, it is mandatory for all formal employment in Argentina.
National Institute of Social Services for Retirement and Pensions (PAMI) On May 13, 1971, the National Institute of Social Services for Retired and Pensioners was created, better known as PAMI – Comprehensive Medical Assistance Program -, in order to provide medical, social and welfare care to a specific population: the elderly .
Work Risk Insurance (ART) The employer is required by law to hire an Occupational Hazard Insurer (ART) or to insure itself to cover all its employees in the event of work-related accidents or occupational diseases. ARTs are private companies that aim to provide the benefits provided by the Labor Risk Law. Every worker has the right to enjoy an ART.
Mandatory Life Insurance The Obligatory Collective Life Insurance provided in Decree No. 1567/74 covers the risk of death and includes suicide as compensable, without limitation of any kind, of any worker in dependency relationship. The lack of contracting of the insurance coverage will constitute an infraction, and the employer will be directly responsible, paying the benefit of the insurance in the event of the worker’s death. This life insurance does not cover the risks of total, absolute, permanent irreversible disability, but only covers the risks of death of the worker.
Family Allowance Scheme (SUAF) The SUAF is an economic assistance given to a worker in a dependency relationship, that is, who works in white or a retiree who is in charge of a child under 18 years of age. Under the SUAF (Single Family Allowance System) the following benefits are paid: Prenatal Maternity Son Child with Disability
National Employment Fund Unemployment Insurance provides it legally laid off without just cause, a monthly payment, family allowances and medical coverage while they are temporarily unemployed.
Social work The social works are “social security organizations, financed through the mandatory contribution of workers and employers, subject to state comptroller and integrated into the National Health Insurance System, whose purposes are the provision of health services and social benefits, the employees have the option of choosing to join the Entity that has to provide these services to them”.

Types of Disabilities

An accident is considered to be any event that occurred during the work activities, or during the journey between the worker’s address and the place of work, as long as the victim has not interrupted or altered the route for any reasons beyond work. Occupational diseases are considered to be those that are included in the list of Occupational Diseases prepared and reviewed annually by the Executive Power.

Employee Security

Worker with out depends
Less than 5 years of Seniority. 3  months of remunerations.
More than 5 years of Seniority. 6  months of remunerations.
Worker with depends
Less than 5 years of Seniority. 6  months of remunerations.
More than 5 years of Seniority. 12  months of remunerations.
Types of disability Brief Description
Temporary Work Disability Temporary Work Disability occurs when a worker is injured or has a professional illness, and the damage suffered prevents him from performing his usual duties. This disability begins on the date of the first invalidating manifestation and ends when the worker receives the medical discharge, or is declared a Permanent Labor Disability, or if he dies.
Permanent Work Disability It is considered that a worker suffers a Permanent Labor Disability, when the damage caused by the accident at work or the occupational disease caused him a decrease in his ability to work that will last throughout his life. Permanent Work Disability can be partial or total degree: Partial Permanent Labor Disability is one whose percentage of disability is less than 66%. Total Permanent Labor Disability is considered when the percentage of disability is greater than 66%. The degree of permanent disability is determined by the Medical Commissions. All Permanent Disabilities result in the payment of a one-time cash benefit.
Great Disability It is considered that a worker is in a situation of Great Disability when he has a Total Permanent Labor Disability and needs the continuous assistance of another person to perform the elementary acts of life.
Death If the worker died due to labor causes, the rightful recipients will receive a single payment. Widows, cohabitants, as well as unmarried sons or daughters and widowed daughters (as long as they do not enjoy retirement, pension), they are all considered entitled until 21 years old. The limitation to the established age does not apply if the right holders are incapacitated for work at the date of death of the deceased, rising up to 25 years in the case of exclusively dependent students of the deceased worker. In the absence of the persons listed, the worker’s parents will access in equal parts; if one of them had died, the benefit will be received in full by the other. In the event of the death of both parents, the benefit shall correspond, equally, to those relatives of the deceased worker who prove to have been in their care.

Workday and holidays in Argentina

Workday is the time during which the worker is available to the employer to lend his service. The worker and the employer will set the duration of the workday, without exceeding the legal maximum of 8 Hour per day, 48 Hour per week. For every six days of work the employee must enjoy a rest day, at least. The work day may also be extended due to extraordinary circumstances: -Maximum 3 Hour per day (in a week it can not exceed 8 hours of overtime) -Maximum 30 Hours per Month Maximum 200 Hours per Year
Type of Work Day Working hours per Day Over Time Sundays
Day shift 8 Hours An additional 50% of the salary The employee will be entitled to 100% over salary on Saturdays after 13 pm, Sundays and holidays.
Night Shift 7 Hours
unhealthy and or dangerous work 6 Hours
In the Law 27.399 it is established the holidays and mandatory day off, there are 2 days that do not apply to everyone except an especific group of workers: a) Law No. 26,199 issued in commemoration of the genocide suffered by the Armenian people. Employees and officials of public sector and students of Armenian origin are allowed to freely dispose of April 24 of each year to attend and participate in activities carried out in commemoration of the tragedy that affected their community. Provincial governments are invited to adhere to the provisions of this law. b) Only for inhabitants who profess the Jewish religion, provided by Article 2 of Law 27,399.
Día/ Date Nombre de festividad/ Holiday Name
January 1st New Year
March 4th Carnaval
March 5th Carnaval
March 24th National Day of Remembrance for Truth and Justice
April 2nd Veterans Day and those killed in the Falklands War
April 19th Holy Friday
May 1st Labors Day
May 25th May Revolution Day
June 20th Day Pass to the Immortality of General Manuel Belgrano
July 9th Independence Day
December 8th Immaculate Conception
December 25th Christmas

Migration Process

Work visas can be processed only before the Argentina’s Consular corresponding to the country of the foreigner. The procedure is personal. Requirements: The applicant must present the following documentation (in original and copy) to the corresponding Consulate:
  • Valid passport with a minimum validity of 6 months at the date of entry into the country.
  • Two current 4x4cm photographs, front, color, white background
  • Full visa application form and signed by the applicant
  • Proof of residence in the jurisdiction of the Consulate
  • Certificate of criminal records apostilled or legalized, issued by the competent authority of the country of residence
  • Commitment to tell the truth or Affidavit of lack of criminal record in other countries.
  • Pre-employment contract signed by both the employer and the employee; the contract must contain:
  • Personal data of both parties
  • Task to be carried out by the employee
  • Duration of the working day
  • Labor relationship duration
  • Address of where the employee will be living during her/his stay in the country
  • Remuneration
  • Employer CUIT Number
  • Contract signatures must be certified by a notary public or before an agent of the national migration directorate at the time of initiating the residency application.
  • Proof that the employer has registration before the Federal Administration of Public Income (AFIP); and before Single Register of Foreign Applicants of the National Immigration Office.
Observations: The preceding enumeration is not taxative and the consular authority may require additional documentation, as it deems appropriate. The fulfillment of the requirements mentioned does not guarantee the granting of the visa, being an exclusive prerrogative of the argentine state.

Employee Termination in Chile

Once the employment contract has begun, neither party can dissolve it without prior notice.
Worker on: Minimum Days of notice
Probation 15 days
From 3 months to 5 years 1 month
From 5 years and on 2 months

Labor termination causes

The employment contract will end in the following cases: 1.- Mutual agreement of the parties. 2.- Resignation of the worker, giving notice to his employer thirty days in advance, at least. 3.- Death of the worker. 4.- Expiration of the term agreed in the contract. The duration of the fixed term contract can not exceed one year. 5.- Conclusion of the work or service that gave rise to the contract. 6.- Fortuitous event or force majeure

Labor termination settlement

If the contract has been valid for a year or more and the employer terminates with out a just cause, the worker must be paid a compensation for the years of service.
  • 30 days of salary for each year of service and fraction greater than 6 months, with a maximum of 330 days
  • The payment of the notice days, if they where not given the prior notification
  • Proportional vacations not taken
If the employee was contracted by a specific work or task, and the relation ends before, they will have the following compensation:
  • 2.5 days of remuneration for each month worked, and fraction greater than 15 days
The settlement, resignation and mutual agreement must be established in writing. The settlement must be granted by the employer and made its payment available to the worker within ten business days, counted from the separation of the worker. The employment contract ends without the right to compensation when the employer terminates it by invoking one or more of the following causes: 1.- Some of the misconduct of a serious nature, duly proven, that are indicated below:       a) Lack in the performance of their duties b) Sexual harassment behaviors c) Injuries issued by the worker to the employer e) Immoral conduct of the worker that affects the company where he works f) Workplace harassment behaviors 2.- Negotiations executed by the worker within the business and that have been prohibited. 3.- Non-attendance of the employee to his work without just cause for two days in a row. 4.- Abandonment of work by the worker, understood as such: a) The untimely and unjustified departure of the worker from the job site and during working hours,                  without the permission of the employer or his representative. b) The refusal to work without justified cause in the tasks agreed in the contract. 5.- Acts or recklessness that affect the safety or operation of the establishment, the safety or activity of the workers, or their health. 6.- The material damage caused intentionally in the facilities, machinery, tools, work tools, products or merchandise. 7.- Serious breach of the obligations imposed by the contract.

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