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Employment in Argentina

The laws and rights that govern employment in Argentina are primarily the Argentine Constitution, international treaties, the Employment Contract Law, several federal statutes and collective bargaining agreements. The federal government may enact employment and labor legislation to all provinces in Argentina as specified in the Argentine Constitution. These employment laws are enforced by the National Ministry of Labor.

The provisions of the Employment Contract Law (Ley de Contrato de Trabajo, LCT) applies to all employees in the private sector (excluding agricultural and domestic workers). The labor laws specify the minimum standards that employees are entitled to and employers must adhere to, applying to all contracts entered into within Argentine territory, regardless of nationality or location.

  1. Contracts

    There are no legal formalities required to enter into an employment relationship, although a written form of offer letter may better define the terms of the agreement. Once an employment contract has been created, the employee is legally entitled to certain rights. Most contracts are assumed to last for an indefinite term unless specified otherwise in the contract. Once an employment contract has been entered into, the employer has an obligation to register any employment relationships in a Special Payroll Book, subject to periodic supervision by the Ministry of Labor.

    There are alternatives to the indefinite term contract, which sometimes require a written agreement to specify special arrangements. These include:

    • Probation periods – The first ninety days of all indefinite term employment contracts is the probationary period, where the employee may be discharged without just cause and no further payments with 15 days’ notice.
    • Fixed-term contracts – These contracts are uncommon and only apply in situations where the term of contract is fixed and certain, between one month and five years’ set employment duration. The contract may be renewed every five years, although are seen unfavorably in court. Termination of a fixed-term contracts are entitled to 50% of the indemnity for payments to indefinite term employees terminated without just cause.
    • Contingent-Temporary contracts – These contracts are created to cover specific types of work or a specific service. A similar form of contract is the contingent-seasonal contract, made for employees who provide services for a specific time of the year.

Employee Entitlements

Information Explanation
Working on Sundays ?

Working on Sundays is permitted, although employees are not expected to do so. A 100% premium of the employee’s wage is required to be paid. Overtime work, including weekend and holiday work, should not exceed 30 hours per month or 200 hours per year.

Disclosure and Confidentiality of Personal Information ?

The disclosure of personal data of an employee is only allowed if it is in the interest of the owner of the information and the employee has consented to the disclosure. This consent may be revoked at any time.

There are conditions where consent to disclose personal information is not required:

  • Disclosure is provided for by law
  • General data processing conditions applies (collected by State, contractual relationship, etc.)
  • The disclosure is between governmental agencies
  • Disclosure is for public health reasons
  • The information is anonymized
Employee Protection and Anti-discrimination Rights ?

Employees are generally protected from discriminatory practices under local laws. Under the Anti-Discrimination Law No.23, 592, any employees dismissed on the grounds of discrimination due to race, religion, nationality, ideology, political affiliation, sex, financial, social or physical condition may demand to be reinstated, demand for the removal of the source of discrimination or be compensated via mandatory severance payments and damages.

Time Off Work ?

The employee may request paid special leave of absence in certain cases, and may be extended at the discretion of the employer. Collective bargaining agreements may grant additional days of leave. The conditions are:

  • Birth of a child (2 days)
  • Marriage (10 days)
  • Death of spouse, children or parents (3 days)
  • Death of brother or sister (1 day)
  • Secondary or university examinations (2 days per exam)

Female employees are entitled to 90 days’ paid maternity leave; 45 days before and after childbirth. The employee may request additional unpaid leave of three to six months.

Medical Leave ?

In the case of illness or accident unrelated to work, employees may take up to three months’ paid leave if he/she has been with the employer for less than five years, and up to six months’ paid leave for those working for longer than five years.

If the employee receives family allowances, the paid sick leave entitlement doubles. Once the paid sick leave period expires, the employee must keep the position open for at least 12 months. If the employee is still unfit for work, severance pay should be granted to the employee.

Any accident or illnesses caused by work-related problems entitles the employee to 12 months compulsory rehabilitation and sick pay under the compulsory employment risk ensurance (Aseguradora de Riesgos del Trabajo).

Accidents and Diseases Not Related to Work

Leave of absence due to accidents or diseases are provided for by the Employment Contract Law. Employees are entitled to up to three months of paid leave for occupation-related accidents or diseases when the employee has been working for less than 5 years with the employer, and up to six months for employment longer than 5 years. Any period longer than the paid leave duration requires the employer to keep the position of the employee for at least 1 year. Any period longer than this may allow either party to terminate without right to severance indemnity.

Employment Termination

Information Explanation
Resignation / End of Service Payment ?

Termination of the contract due to redundancy provides the employee with a reduced severance payment of 50% of the normal severance pay in the case of regular dismissal. Redundancy is justifiable for the employer if they can prove the dismissal was due to reduction in production outside the employer’s power, or force majeure.

Severance / Redundancy Pay ?

Severance pay is calculated based on the employee’s highest regular, monthly salary accrued over the last year. The cap for calculation of seniority indemnity must not be less than 67% of the computable best ordinary usual monthly remuneration.

For fixed-term employees with premature termination of their contract, the severance payment consists of the remaining salary that would have been paid until the completion of the contract. Fixed-term employees who have been working for longer than a year are also entitled to 50% of the severance pay that a permanent employee would have received.

There are certain causes where employees may be entitled to additional severance pay, such as employment with union representatives. A special procedure must be followed before the Labor Courts, as employees may only be terminated with just cause. IF the procedure is not followed, the representative may choose being reinstated or receiving a significant severance pay package. Termination due to pregnancy or discrimination also allows additional severance payments.

Termination of Employment ?

The duration of the notice period depends on certain conditions:

  • Three month probationary period – 15 days’ notice
  • Less than five years of service – one month
  • More than five years of service – two months

Payment in lieu of notice applies in these cases.

Outsourcing Employment Through a GEO Employer of Record Service

Compliance with local employment requirements is just one of the issues foreign companies face when employing staff in Argentina. For companies which intend to employ their staff directly through their incorporated Argentina entity, professional legal advice is recommended. Shield GEO provides an alternative path for companies to outsource the employment of their staff in Argentina.


As a Global Employer Organization (GEO), Shield GEO acts as the Employer of Record and ensures the employment is compliant with host country regulations regarding employment. In addition Shield GEO will handle payroll processing, tax and immigration. Using Shield GEO is the fastest and most cost effective way to deploy local and foreign workers into Argentina.


The Shield GEO solution is an attractive alternative where

– the company is looking to employ staff quickly

– the company doesn’t have an appropriately incorporated entity in Argentina

– the company wants to work within a defined budget

– the company wants to limit its initial commitment in Argentina

– the company needs help with tax, employment, immigration and payroll compliance in Argentina


Shield GEO can contract directly with the company to employ and payroll their staff in Argentina. Shield GEO supplies local employment contracts for the staff which ensure that local statutory requirements are met covering issues such as termination, probation periods, leave entitlements and statutory benefits.  Shield GEO is able to advise companies how to cover local employment regulations whilst still providing consistent global employment policies. Understand more about outsourced employment through Shield GEO.



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