Do employment contracts in Argentina need to be in writing? Are employees entitled to paid sick leave? How should employers choose the order in which employees are made redundant? Global employers that operate in Argentina can find out about their legal obligations and more in XpertHR’s new guide to employment law in Argentina (US version).
The guide provides a concise overview of the main points of Argentinian employment law as a first point of reference for HR professionals with responsibility for staff issues in Argentina.
Below, we outline seven interesting facts of Argentinian employment law.
1. “13-month” payment
Every year, employees are entitled to receive a “13th month” of salary from their employer, which is payable to the employee in two annual instalments.
2. Paid sick leave
Employees are entitled to paid sick leave for up to 12 months, with the time that they receive sick pay for dependent on their length of service and family responsibilities.
3. Holiday pay
During annual leave, employees receive a holiday pay premium of about 20% more than the remuneration that they would have received for working over the same period.
4. Employment contracts
There is no general requirement that employment contracts must be in writing, and the employer is not required to provide an employee with a written statement of the terms of employment. However, fixed-term contracts and contingency employment contracts (ie contracts that terminate on the completion of a specified task or when a specific event occurs) must be in writing.
5. Business transfers
Employers are not obligated to inform and consult employees, either directly or through trade unions, prior to a business transfer. In the event of a business transfer, the affected employees’ contracts are transferred automatically from the old owner to the new owner, and the employees maintain their acquired length of service and existing pay and conditions.
6. “Labour book”
Employers are required to maintain a labour book containing details of all employees including name, marital status, job description and salary. Employers must register all employees in the labour book within one month of employment beginning. Failure to register can expose an employer to a compensation claim by the employee.
7. Redundancy dismissals
When dismissing employees due to lack of work, employees’ family responsibilities must be taken into account in deciding the order of selection for dismissal: employees with fewer family responsibilities should be dismissed first.