Simplifying Employment Relationships in Argentina

Key Changes

Simplifying employment relationships in Argentina, the National Executive Power has issued a decree to streamline employment from beginning to end. This decree aims to ease the legal and economic aspects of employment. While Congress debates its approval, the decree remains valid and in force.

Issued in December, the decree allows hiring professionals without classifying them as employees. This grants freedom to define rights and obligations within contracts. Here are the key changes and their impacts:

Simplified Employment Processes

1. Employment Registration: Easier registration of employment relationships.
2. Payment Processes: Simplifies payments to employees and Social Security.
3. Mutual Agreement Terminations: Streamlines termination by mutual consent.
4. Dispute Resolution: State authorities can swiftly approve agreements settling employment disputes.

Financial Adjustments and Penalties

If an employer misregisters an employment relationship, previously paid amounts can now be deducted from future payments. Employers no longer need to pay double compensation for unregistered employment relationships. Additionally, the decree eliminates fines for failing to contribute to Social Security.

Collective Agreements and Worker Rights

Collective Employment Agreements are now limited to their stated deadlines. Worker assemblies on industrial issues can occur at workplaces if they don’t disrupt activities.

Changes in Hiring and Employment Terms

1. Intermediaries: Intermediaries can now participate in agricultural work.
2. Trial Period Extension: Trial work periods extend from 6 to 8 months.
3. Union Choice: Employees can choose their worker union regardless of their tasks.
4. Travelling Salesmen: They are now governed by the general employment regime.
5. Task Modus Changes: Agreements can shift tasks from remote to on-site work.
6. Grounds for Dismissal: Damage to the workplace by an employee can lead to dismissal without prior notice.

Discrimination and Record-Keeping

In discrimination claims, the burden of proof now lies with the worker. Employers are required to keep receipts signed by employees for a shorter duration. The amount for severance pay has also been reduced.

These comprehensive changes aim to foster a more flexible and efficient employment landscape in Argentina. The decree is a significant step towards modernising employment laws, benefiting both employers and employees. Keep an eye on Congress’s decision, but for now, these rules are in full effect.

In Summary

The Argentinian government has issued a decree to simplify employment relationships, focusing on easier registration, payment processes, and mutual terminations, while streamlining dispute resolution and eliminating certain fines and compensations. It also extends trial periods, allows flexible union choices and task modes, and modifies rules on discrimination claims and record-keeping.

360 Business Law in Argentina can assist businesses in navigating these new regulations, ensuring compliance, and optimising their employment practices for greater efficiency and legal security.