Indefinite term contracts permit trial periods of up to three months. Termination within this trial period can be executed without incurring any compensation or severance payment obligations for the employee. The sole requirement is to provide a 15-day advance notice of termination.

In contrast, fixed-term contracts do not incorporate a trial period.

Standard working hours are capped at eight per day or 48 per week. However, night shifts and roles in hazardous or unhealthy workplaces entail reduced working hours, usually seven hours per day for night shifts and six hours per day for positions in such environments.

Overtime is defined as any work performed beyond the regular working hours. Employees engaged in overtime work receive an extra payment equivalent to 50% of their salary on weekdays. On Saturday afternoons, Sundays, and holidays, they are entitled to double their salary. Certain Collective Bargaining Agreements (CBAs) may stipulate higher compensation rates. Overtime is subject to limitations, not exceeding three hours in a day, 30 hours in a month, and 200 hours in a year. All employees, with the exception of registered corporate directors or corporate managers, are eligible for overtime payment.

Mandatory pre-employment health assessments are necessary to assess an applicant’s capacity to perform the tasks associated with their prospective job.

Employers have an obligation to furnish employees with compulsory life insurance and workplace accident insurance. Additionally, it is mandatory for employers to establish a safe and healthy work environment, encompassing both physical and psychological aspects, in accordance with the guidelines outlined in the workers’ insurance regulations.

Employees have the right to receive a 13th-month salary, also known as the statutory annual bonus (‘sueldo anual complementario’ – SAC or ‘Aguinaldo’). This bonus is disbursed in two semi-annual installments, scheduled for June and December. Each installment should amount to 50% of the highest monthly salary earned during the respective semester.

Employers retain the right to terminate an employee at any time without justified cause, but they must then fulfill the obligation of providing severance compensation as stipulated by labor laws. Termination with justified cause, however, does not entail the payment of severance compensation.

In cases where an employee fails to meet their obligations to the employer, termination with justified cause is permissible. Specific breaches leading to such dismissal are not explicitly outlined in labor laws, necessitating a case-by-case evaluation. The burden of proof lies with the employer, and the terminated employee has the right to challenge such dismissals. In these instances, a Labor Court will assess whether the employer had a justified cause for the dismissal.

No severance compensation is mandated if an employee voluntarily resigns.

If there is a breach of terms by the employer, preventing the continuation of the employment relationship, the employee can consider themselves constructively dismissed. Once again, a Labor Court will be tasked with determining whether the employee had a justified cause for constructive dismissal.

In the case of termination without justified cause, employers are required to furnish written notice to the employee beforehand, adhering to the following terms:

• 15 days in advance if the contract is within the probationary period.
• One month in advance if the employee has worked for up to five years.
• Two months in advance if the employee has worked for more than five years.

Alternatively, the employer may opt to forego the notice period by providing payment in lieu of notice.

On the other hand, employees must give a 15-day prior notice to the employer in the event of their resignation.

In the event of the employer terminating employment without justified cause, the employer must provide the employee with mandatory severance compensation structured as follows:

Seniority Compensation: Employees terminated without justified cause are entitled to one month’s salary for each year of employment (or part year exceeding three months). This calculation is based on the employee’s highest paid month (regular salary) during the last working year. The compensation is subject to a cap, depending on the applicable Collective Bargaining Agreement (CBA), but it cannot be lower than 67% of the employee’s monthly salary.

Compensation in Lieu of Notice: The employer, as mentioned in the preceding section, must give prior written notice. If such notice is not provided, the employer must pay severance compensation in lieu of notice, equivalent to 15 days’ salary or one or two monthly salaries depending on each case. It is customary for employers to opt for compensation instead of prior notice.

Pending Days through the End of the Month: In the month of dismissal, the employee is entitled to receive the full salary, regardless of the actual duration of services. If the dismissal does not occur on the last day of the month, the employer must compensate the employee with a sum equal to the proportional salary for the pending days to complete the entire month of dismissal.

Compensation for Unused Vacations: The employee is entitled to compensation proportional to the vacation pay for the days effectively worked during the year of dismissal.

Statutory Annual Bonus: The employee is entitled to receive the proportional amount of the 13th-month salary.

An employee terminated with just cause is not entitled to mandatory severance. However, if the employee challenges the dismissal and a court deems the cause insufficient to be considered a breach of the main obligations of the employment contract, the court may award the employee mandatory or even increased severance. Given the increasing complexity of employment legislation in Argentina, reaching a conciliatory agreement is often deemed the most prudent approach.

Redundancies:
The law allows employers to dismiss employees for objective reasons, including lack of work beyond the employer’s responsibility or force majeure. In such cases, the employer is obligated to pay half the compensation based on seniority instead of the full compensation based on seniority.

In Argentina, trade unions and employers’ associations represent various activities. Employees have the right to organize into unions, with the freedom to decide whether or not to affiliate. Official recognition is granted by the government to the most representative union, allowing it to represent employees in Collective Bargaining Agreements (CBAs).

Argentine law neither expressly prohibits nor specifically regulates post-employment non-compete agreements. However, the enforceability of such agreements raises questions in light of the constitutional right to work (§14 of the Constitution). According to case law, for a post-employment non-compete agreement to be enforceable, it must be justified by the significant role of the employee (e.g., chief financial officer, chief executive officer), confined to specific activities and territory, subject to a time limit (not exceeding two years), and accompanied by compensation (equivalent to at least 50% of the previous monthly salary).

Salary payments must be substantiated by a receipt, duly signed by the employee. The receipt should encompass details such as the place and date of issue, the employee’s complete name and address, CUIT (a unique tax code), particulars of the received remuneration, itemized deductions, and evidence of acknowledgment. The employer is responsible for furnishing a copy of the receipt to the employee.

For non-work-related illnesses or accidents, employees with less than five years of continuous service are eligible for three months of paid sick leave, while those with over five years of service receive six months of paid sick leave. If employees have dependents, the leave allowances are doubled.

In cases of illnesses or accidents stemming from work-related issues, employees are entitled to 12 months of mandatory rehabilitation and sick pay covered by compulsory employment risk insurance. The company is responsible for paying the employee’s salary for the initial 15 days, after which the insurance company takes over sick leave payments.

Following the conclusion of a paid sick leave period, the position must be kept open for 12 months. If the employee remains unable to work after this period, severance pay should be extended to the employee.

Employees can avail themselves of paid leave under the following circumstances:

• Marriage: 10 days
• Birth of a child: two days

Public Duty Leave: Employees called to testify in court are entitled to paid leave, while those elected to serve on a representative body are eligible for unpaid leave. This period of leave is considered as working time for seniority calculations.

University or secondary school examination: two days at a time, with a total cap of 10 days.

Collective Bargaining Agreements (CBAs) may provide additional days of leave, and employers have the discretion to extend all types of leave at their discretion.

In the unfortunate event of the death of a spouse, child, or parent, employees are granted three days of bereavement leave. In the case of the passing of a sibling, one day of bereavement leave is provided.

Maternity Leave: Women are entitled to an unpaid maternity leave period totaling 90 calendar days, typically taken as 45 days before and 45 days after the delivery date. Alternatively, employees have the flexibility to allocate this leave as 30 days before delivery and 60 days after delivery. During the unpaid maternity leave, the social security department provides female employees with a maternity allowance equivalent to 100% of their usual salary. Additionally, female employees have the option to request extended unpaid leave ranging from three to six months.

Paternity Leave: While male employees are not legally entitled to paternity leave, other than the two days for the birth of a child as specified in other paid leave policies, it has become increasingly common for companies to voluntarily grant paternity leave.

Adoption Leave: There is no statutory requirement for adoption leave, although recent legal cases have resulted in employees being granted maternity and paternity leave when adopting.

Parental Rights: Mothers have the option to resign from their employment to care for a sick child. In such cases, the mother is entitled to receive a payment equivalent to 25% of the total severance pay she would have received if the termination had been a dismissal without cause.

Employees have the right to paid leave on national public holidays. In the event that employees work on national holidays, they are entitled to receive an additional 100% compensation based on their regular hourly rate.