Hamburger
  • Legal system, currency, language

    Civil law. Argentine Peso (AR$). Spanish.

  • Corporate presence requirements & payroll set-up

    A foreign entity cannot hire employees in Argentina without a local corporate presence.

    Employers must pay social security contributions (23% or 27% on top of salaries, depending on the company's activity and revenues). Employees must contribute 17% of their salaries to the social security system (to be withheld by the employer and subject to certain taxable limits). Income tax is also withheld by the employer when paying employees' salaries (maximum rate 35%, subject to a progressive scale).

    Collective Bargaining Agreements for certain activities provide payments to be made by the employer and/or the unionized employees to the relevant Unions.

  • Pre-hire checks

    Required

    Pre-employment medical examination.

    Permissible

    • Psycho-technical test (test into certain psychological aspects and technical expertise relevant for the position)
    • Background checks of educational degrees
    • Criminal records checks only for certain jobs (eg, security guards)

    Financial status checks and medical checks regarding certain medical conditions can be regarded as discriminatory and are not permitted.

  • Immigration

    Natives of MERCOSUL Treaty associated countries (Bolivia, Brazil, Chile, Colombia, Ecuador, Paraguay, Peru, Uruguay, Venezuela, Guayana or Surinam or natives of other countries nationalized for at least 5 years in Brazil, Uruguay, Paraguay, Chile or Bolivia), can apply for a simplified immigration proceeding directly before the Immigration Agency after entering Argentina, for obtaining a temporary residence (work permit) without the sponsoring of a specific employer.
    Immigrants from non- MERCOSUL countries have to apply for a temporary residence (work permit) under the standard proceedings, sponsored by an employer duly registered in Argentina.

  • Hiring options

    Employee

    Indefinite term employment contract is the general rule for hiring employees.
    Employees can also be hired through fixed-term, temporary or seasonal employment contracts, provided the employer complies with the specific legal requisites for each contract.

    Independent contractor

    Individuals rendering services for a company on a regular basis as "independent contractors" can be regarded as concealed employees. The risk of misclassification is usually high. Only in certain cases it would be advisable to hire individual independent contractors to perform specific tasks (eg, professionals, consultants, non-regular technical tasks).

    Agency worker

    It is accepted to engage employees through agencies for temporary and extraordinary tasks subject to certain regulatory and case law limits.

  • Employment contracts & policies

    Employment contracts

    Indefinite term employment contracts do not need to be in writing. Fixed-term and certain temporary employment contracts must be executed in writing.

    Probationary periods

    Indefinite term contracts may contain a probationary period of up to 3 months.

    Policies

    Employers can issue internal policies for ruling certain aspects of employment relationship, provided they observe minimum rights stemming from Labor Law and relevant Collective Bargaining Agreements.

    Third-party approval

    Neither employment contracts nor company policies require third-party approvals.

  • Language requirements

    Even though it is not legally required, it is strongly advisable to draft employment contracts and company policies in Spanish.

  • Minimum employment rights

    Employees entitled to minimum employment rights

    All employees are entitled to minimum employment rights stemming from the Labor Law or the relevant Collective Bargaining Agreement (CBA), when applicable.

    Working hours

    The maximum working hours are 48 hours per week. Working shifts can be structured, for example, in 9 hours per day for 5 days per week, as long as they do not exceed the weekly limit. Only directors and other high-level managers are exempt from the working hours limit and therefore not entitled to overtime.

    Overtime

    Employees who work overtime during weekdays (ie, Monday through Saturday at 1:00 pm) are entitled to an additional 50% payment based on the hourly salary rate. If the employees work overtime on national holidays or during the weekend (ie, after 1:00 pm on Saturday), they are entitled to an additional 100% payment.

    In no event employees may work overtime more than 30 hours per month or 200 hours per calendar year.

    Wages

    Mandatory minimum wage is AR$9,500 as of January 1, 2018, and will be increased to AR$10,000 as of July 1, 2018.

    Vacation

    Employees are entitled to a minimum and continued period of paid annual vacations of:

    • 14 calendar days when seniority does not exceed 5 years
    • 21 calendar days when seniority is 5 to up to 10 years
    • 28 calendar days when seniority is 10 to up to 20 years
    • 35 days when seniority exceeds 20 years

    Sick leave & pay

    Employees with less than 5 years' seniority are entitled to leave due to non-work-related accidents or diseases for up to 3 months, and 6 months if they have longer seniority, fully paid by the company. For employees with family dependents, the period during which those employees are entitled to payment may be extended to 6 or 12 months, respectively.

    Maternity/parental leave & pay

    Female employees are prohibited from working during the 45 days preceding childbirth and up to 45 days thereafter. The employee may take a shorter leave before birth no less than 30 days, in which case the leave period following childbirth will be 60 days. In case of premature childbirth, the leave not taken before childbirth is added to the period after childbirth to complete the 90 days. During the maternity leave, the Social Security Authorities pay the employee a family allowance equal to her regular monthly salary.

    Fathers are entitled to 2 days paid leave due to the birth of a child.

  • Discrimination

    The law prohibits any discriminatory practice based on race, religion, nationality, ideology, political affiliation, union membership and sex, as well as economic standing, social condition and/or physical characteristics.

  • Benefits & pensions

    Employees must be enrolled in the Argentinean Social Security System, which provides for old age pension and disability benefits, and mandatory health coverage.
    Upgrading to a private health plan can be granted by the employer as an additional benefit.

  • Data privacy

    The employer may collect such employee data necessary to comply with labor and social security mandatory records. In order to transfer personal data cross-border, consent of the employee must be obtained.

    Nobody must be obligated to reveal sensitive data (that is, information revealing racial or ethnic origin, political opinion, religious, philosophical or moral beliefs, trade union membership, or information related to health or sex life).

    Monitoring an employee's work device is allowed, provided the employee is duly notified in advance, and personal information is safeguarded and not disclosed.

  • Rules in transactions/business transfers

    There is no obligation to notify or get approval from the labor authorities or unions before asset or share deals.

    Seller and buyer shall be jointly and severally liable regarding existing labor and social security obligations on the transfer date.

    Employment terms and conditions cannot be detrimentally altered as a result of the transfer.

  • Employee representation

    As a general rule, only the most representative union in each activity has the ability to execute CBAs. There are various industry-wide CBAs, eg, trade and commerce, metallurgy, truck drivers, oil and gas, etc. CBAs usually exclude white-collar employees. Employees can freely join unions. The employer will apply the CBA corresponding to its main activity, and to those employees included in it.

    There are no works councils. However, union representatives (employees' delegates) can be appointed.

  • Termination

    Grounds

    The employer is allowed to terminate employment contract for cause, but the law does not establish specific causes. It depends on the employer's discretion, but Labor Courts usually interpret in a restrictive way the causes invoked by the employers for dismissing employees for cause.

    In general terms, the employer can terminate employees without cause, but must pay the statutory severance payment.

    Who is subject to termination laws

    All employees.

    Prohibited or restricted terminations

    Female employees have additional protections (special indemnifications) due to maternity, pregnancy or marriage. Termination within the 7.5 months prior and after birth is presumed to be due to maternity, shifting the burden of proof back to the employer.

    Union representatives cannot be terminated without cause.

    Employees under sick leave may not be terminated.

    Third-party approval for termination/termination documents

    In general terms, third party approvals for termination are not required.
    In case of conflict, a settlement putting an end to the dispute can be executed before the labor authorities (ie, Ministry of Labor or Labor Courts). Only releases executed before the Ministry of Labor or before Labor Courts are enforceable.

    Mass layoff rules

    Where mass redundancies on the grounds of economic causes are planned, the employer will be required to follow a preventive crisis procedure (PCP) before the Ministry of Labor, aimed at reaching an agreement with the relevant union.

    Typically, this does not apply if the employer terminates employees without cause, unless there is a strong union presence within the company, which attempts to invoke the PCP proceedings.

    A PCP is triggered when redundancies involve the following numbers of affected employees:

    • 15% of employees in companies with fewer than 400 employees
    • 10% of employees in companies of 400 to 1000 employees
    • 5% of employees in companies with more than 1000 employees

    Notice

    Applicable notice periods depend on seniority as follows:

    • Less than 3 months (within the probationary period) = 15 days' notice
    • More than 3 months – less than 5 years = 1 month's notice
    • More than 5 years – 2 months' notice

    Statutory right to pay in lieu of notice or garden leave

    Payment in lieu of notice and garden leave are permitted.

    Severance

    When terminating (without cause) an indefinite-term employee, statutory severance payment must be paid; basically, equal to the highest monthly salary recieved during the last year times years of service (or fraction higher than 3 months). Basis of calculation may be subject to certain limits.

    An employee under a fixed-term contract of 1 year (or more) must be paid with 50% statutory severance payment at expiration. Termination in advance of the agreed term, may make employer liable for paying statutory severance payment plus remaining salaries until the end of the term.

    Temporary contracts do not involve statutory severance payment at termination, except in case of termination in advance to the agreed term or before completing the contract purpose.

  • Post-termination restraints

    There are no specific provisions in Labor Law on this regard. However, as the National Constitution grants to everyone the right to freely work, post-termination restraints are restrictively interpreted.

    Non-competes

    There are no specific regulations for non-competition after employment termination. In general terms, they are accepted provided sufficient consideration is given (which is undefined, but usually assumed to be 60-70% of the compensation), and for a limited period of time. However, confidentiality duties shall be observed even after employment termination.

    Customer non-solicits

    There are no specific regulations for customer non-solicitation after employment termination. In general terms, they are accepted provided sufficient consideration is given and for a limited period of time. However, confidentiality duties shall be observed even after employment termination.

    Employee non-solicits

    There are no specific regulations for employees non-solicitation after employment termination. In general terms, they are accepted provided enough consideration is given and for a limited period of time.

  • Waivers

    Only enforceable in the context of a settlement before the labor authorities (Ministry of Labor or Labor Courts).

  • Remedies

    Discrimination

    Discrimination can trigger additional compensations subject to Labor Courts discretion.

    In certain cases (eg, employees acting as "de facto" union representatives), Labor Courts have ordered to reinstate employee (same protection given by the Union's law to those representatives duly appointed).

    Unfair dismissal

    Unfair dismissal just triggers statutory severance payment, except in those cases for which the Law states a special protection (eg, pregnant employees, union representatives). Pregnant employees can demand additional compensation, and union representatives can demand additional compensation or reinstatement.

    Failure to inform & consult

    Not applicable.

  • Criminal sanctions

    In general terms, violation of employment laws does not entail criminal sanctions (except those related to serious acts such as child labor, evasion of tax and social security obligations, etc.).

  • Key contacts
    Osvaldo Jofre
    Osvaldo Jofre
    Cordova Francos [email protected]

Legal system, currency, language

Argentina

Civil law. Argentine Peso (AR$). Spanish.

Australia

Common law jurisdiction with employment laws that operate at both the federal and state levels. Australian Dollar (AU$). English.

Austria

Civil law. Member of the European Union (EU), so required to implement relevant EU Directives. Euro (€). German.

Bahrain

Civil law system — employment matters are governed by Law No. 36 of 2012 (Labor Law) as amended. Bahraini Dinar (BHD). Official language is Arabic.

Belgium

Civil law. Member of European Union (EU), so required to implement relevant EU Directives. Euro (€). Dutch, French and German.

Brazil

Civil law. Brazilian Real (R$). Portuguese. 

Canada

Common law throughout the majority of the country, civil law in the province of Quebec. Canadian dollar (CAD). English and French are both official languages.

Chile

Continental Law, Chilean Peso (CLP), Spanish.

China

Civil law. Chinese Renminbi (CNY). Mandarin.

Colombia

Civil law. Colombian Peso (COP $). Spanish.

Czech Republic

Civil law. Member of the European Union. Czech Crown (CZK). Czech.

Denmark

Civil Law. Member of the EU and required to implement relevant EU Directives. Danish kroner (DKK). Danish.

Finland

Civil law. Member of the European Union (EU), so required to implement relevant EU Directives. Euro (€). Finnish and Swedish.

France

Civil law. Member of the European Union (EU), so required to implement relevant EU Directives. Euro (). French.

Germany

Civil law. Member of the European Union (EU), so required to implement relevant EU Directives. Euro (€). German.

Hong Kong

Common law. The Basic Law of the Hong Kong Special Administrative Region (HKSAR) provides that courts of HKSAR may refer to the precedents of other common law jurisdictions when making decisions. Hong Kong dollar (HK$). English and Chinese.

Hungary

Civil law. Member of the European Union (EU), so required to implement relevant EU Directives. Hungarian Forint (HUF). Hungarian.

India

India uses a common law legal system, except in the State of Goa, which has a civil code. Indian Rupee (INR). India is a multi-linguistic country with many languages and dialects across the country. The official languages of the Union Government are Hindi and English. Individual states are able to set their own official language.

Indonesia

Civil law. Indonesian Rupiah (IDR). Bahasa Indonesia.

Ireland

Common law. Member of the European Union (EU), so required to implement relevant EU Directives. Euro (€). English.

Israel

Strong common law heritage with elements from other legal systems. New Israeli Shekel (ILS). Hebrew and Arabic (English commonly spoken).

Italy

Civil law. Member of European Union (EU), so required to implement relevant EU Directives. Euro (€). Italian.

Japan

Civil law. Japanese yen (JPY). Japanese.

Kenya

Common law. Kenya Shilling (KES or Ksh.) Swahili and English.

Kuwait

Civil law — employment matters are governed by Law No. 6 of 2010 (the Labor Law)(as amended). There are also relevant provisions in the Penal Code and Civil Code. Kuwaiti Dinar (KD). Arabic.

Luxembourg

Civil law. Member of the European Union (EU), so required to implement relevant EU directives. Euro (€). French, German and Luxembourgish.

Malaysia

Common law and statute. Malaysian Ringgit(MYR)/Ringgit Malaysia(RM). Malay/Bahasa Malaysia and English.

Mexico

Civil law. Mexican Peso (MX$). Spanish.

Morocco

Civil law, inspired by French law. Moroccan Dirhams (MAD). Official language is Arabic, but French is common for business purposes.

Mozambique

Civil law. Mozambican Metical (MZM). Portuguese.

Myanmar

New civil laws co-exist with the old British colonial laws and regulations, and the laws and regulations issued by the various military governments over the last fifty years. Further, there has been a liberal application over the last few decades of "policies and practices," which are not detailed in any laws or regulations and are often unpublished.

Myanmar/Burmese Kyat (MMK).

The official language is Burmese. English has become increasingly popular in the business community. In practice, dual language (Burmese/English) contracts will be required to ensure that all parties understand the contents of the employment contract.

Netherlands

Civil law. Member of the European Union, so required to implement relevant EU Directives. Euro (€). Dutch.

New Zealand

Common law. New Zealand Dollar (NZ$). English.

Nigeria

The legal system in Nigeria consists of a) Nigerian legislation, b) English law, which includes the common law, doctrine of equity and statutes of general application in force in England on January 1, 1900, c) Sharia law (applicable in some parts of the North) and customary law and d) judicial precedent.

Nigerian Naira (NGN).

English.

Norway

Civil law. Norwegian Kroner (NOK). Norwegian.

Oman

Federal and civil legal system — employment matters are governed by the Oman Labor Law issued by Royal Decree 35/2003 (Labor Law) (as amended). There are also relevant provisions in the Penal Code and Civil Code. Omani Rial (OMR). Arabic.

Philippines

Civil law, Philippine Peso (PhP), English and Filipino

Poland

Civil law. Member of the European Union (EU), so required to implement relevant EU Directives. Polish zloty (PLN). Polish.

Portugal

Civil law. Member of European Union (EU), so required to implement relevant EU Directives. Euro (€). Portuguese.

Qatar

Federal and civil legal system — employment matters are governed by Law No. 14 of 2004 (the Labor Law) (as amended). There are also relevant provisions in Law No (4) of 2009 (Sponsorship Law).

Companies established in the Qatar Financial Centre (QFC) will be governed by QFC laws and regulations with the primary employment law provisions being contained in QFC Regulation 10 – Employment Regulations and QFC Regulation 11 – Immigration Regulations. This guide focuses on the state labor laws.

Qatari Riyal (QAR). Arabic.

Romania

Civil law. Member of the European Union (EU), so required to implement relevant EU Directives. Romanian Leu (RON). Romanian.

Russia

Civil law. Russian Ruble (RUB). Russian.

Saudi Arabia

Sharia law. Member of the Gulf Coordination Council (GCC), therefore required to implement the relevant GCC laws. Saudi Arabian Riyal (SAR). Arabic.

Singapore

Common law. Singapore Dollar (SGD). English, Chinese, Malay and Tamil. English is the main language of law and business.

Slovak Republic

Civil law. Member of the European Union (EU), so required to implement relevant EU Directives. Euro (€). Slovak.

South Africa

Common law, civil law and customary law, subject to the Constitution. South African Rand (ZAR). 11 official languages: Afrikaans, English, Ndebele, Northern Sotho, Sotho, Swazi, Tswana, Tsonga, Venda, Xhosa and Zulu.

South Korea

Civil law, though court precedents play an important role. South Korean Won (KRW). Korean.

Spain

Civil law. Member of European Union (EU), so required to implement relevant EU Directives. Euro (€). Spanish.

Sweden

Civil law. Member of European Union (EU), so required to implement relevant EU Directives. Swedish Krona (SEK). Swedish language.

Switzerland

Civil law. Not a member of the European Union (EU), but member of the European Free Trade Association (EFTA). Swiss Francs (CHF). German, French, and Italian.

Taiwan

Civil law. New Taiwan dollar (TW$). Mandarin.

Thailand

Civil law based on various laws and practices, in particular Napoleonic Code and German civil law. Thai Baht (THB). Thai.

Turkey

Civil law. Turkish Lira (TRY). Turkish.

Uganda

Common law. Uganda Shilling (UGX). Member of the African Union (AU), so required to implement relevant AU Directives. English.

Ukraine

Civil law. Hryvnia (UAH). Ukrainian.

United Arab Emirates

Federal and Civil legal system; employment matters are governed by Federal Law No. 8 of 1980 (the Labor Law) (as amended). There are also relevant provisions in the Penal Code and Civil Code. Dirhams (AED). Official language is Arabic.

United Kingdom

Common Law. Pound Sterling (GBP or £). Member of the EU and required to implement relevant EU Directives. NB In June 2016, the UK voted to leave the EU and this will take effect from 29 March 2019, subject to a transitionary process. English.

United States

Combination of federal statutory law, state statutory and common law, and local statutory law. Regulations vary significantly from state to state. US Dollar ($). English.

Venezuela

Civil law. Venezuelan Bolívar (VEF). Spanish and Venezuelan native languages.

Vietnam

Civil law. Vietnamese Dong (VND). Vietnamese, but English has become increasingly popular in the business community.