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Employment contracts in Argentina

Every country in the world has its own rules, requirements, and customs when it comes to employment contracts. For example, some countries require contracts to be concluded in writing, while others consider verbal agreements to be legally valid. Many countries also have specific requirements for the language in which employment contracts must be drafted. This is particularly important in case of any disputes that must be heard by a labour court.

In this section, we’ll take you through everything you need to know about employment contracts in Argentina. We’ll discuss the different types of contracts that are available to employers and the specific rules and regulations that apply to each one. We’ll also cover some basic information about working conditions in Argentina, including the rules surrounding working hours and remote work.

Employment contracts and policies in Argentina

Like all countries, Argentina has its own specific rules and regulations concerning employment contracts. Here’s what businesses need to know about the law on contracts of employment in Argentina.

Employment contracts in Argentina

Unless a collective bargaining agreement says otherwise, employment contracts for full-time, permanent jobs in Argentina can be in any form. That means that written contracts are not required. This is because Argentina’s labour laws are very comprehensive and rule on almost every aspect of the employment relationship, meaning there is no need for an extensive contract.

That said, it’s still best practice to provide each employee with a written contract so everyone understands the terms and conditions of employment. Employers are also required to register employees in the company labour books and with the tax authorities.

Types of employment contracts in Argentina

Employment contracts in Argentina can be either full-time or part-time. They can also be either indefinite (permanent) or for a fixed term. However, there are limitations on the circumstances in which fixed-term contracts can be used. Unlike permanent, full-time contracts, fixed-term and part-time contracts must be concluded in writing and must include details of the part-time hours to be worked and/or the justification for using a fixed-term contract.

Probationary periods in Argentina

Probationary periods are common practice in Argentina. The maximum length of a probationary period is six months (recently increased from three months). During the probationary period, either the employer or the employee can end the contract with limited notice, and no severance pay is required.

Employment policies in Argentina

Argentine labour law doesn’t require employers to have specific policies in place. However, there are certain policies that are strongly advised to prevent potential conflicts, such as bonus policies.

Third-party approval for employment contracts in Argentina

Unlike in some other countries, there is no requirement for third-party approval of employment contracts or policies in Argentina. However, employers must register each employee with the tax authorities.

Employment contract terms in Argentina

Because written employment contracts are not mandatory in Argentina, there are no specific requirements for the information that needs to be included in a worker’s contract. However, it’s common practice to include at least the following information:

  • Name of the employee and the employer.
  • Contract’s start date.
  • Length of employment (for fixed-term contracts).
  • Job description.
  • Conditions for termination.
  • Salary and payment terms.

Many contract terms in Argentina are defined by employment law, which is wide-reaching and comprehensive. While employment contracts can provide terms that are more generous than the provisions of labour law, they can’t provide for less favourable conditions.

Service employment contracts in Argentina

In Argentina, service contracts are used to hire freelancers or independent contractors for specific tasks or projects. These are typically less comprehensive than employment contracts since independent professionals are responsible for organising the particulars of their work. Employers don’t have to withhold or pay taxes on payments they make to individuals engaged through service employment contracts.

Fixed-term contracts in Argentina

Employers in Argentina can engage workers on fixed-term contracts if they only need their services for a limited period. However, there are certain limitations on the use of fixed-term contracts, which employers must be aware of.

Restrictions on fixed-term contracts in Argentina

Unlike permanent contracts, fixed-term contracts in Argentina must be concluded in writing. The contract should include the end date and should also state the justification for using a fixed-term contract. Fixed-term contracts can have a maximum duration of five years.

If there is any doubt about the nature of a contract in

Argentina, it is deemed to be a permanent contract. At the end of the contract, the employer must serve notice of no less than one month and no more than two months. If they fail to do this, the contract will automatically transform into an indefinite contract. Employees can claim damages if the employer dismisses them without cause before the agreed term.

Reasons for concluding a fixed-term contract in Argentina

The law does not stipulate specific justifications for using fixed-term contracts in Argentina. However, they may only be used when there is a genuine need due to the nature of the work or the company’s circumstances.

Contracts for the duration of the work or task in Argentina

Another type of fixed-term contract in Argentina is a contract for the duration of the work or task. These are used when the nature of the work is temporary, but it’s not possible to know exactly when it will be complete. These contracts terminate when the work is finished.

Contract extensions in Argentina

There’s no specific limitation on the number of times a fixed-term contract can be extended or renewed in Argentina. However, a string of contracts may not exceed a total term of five years. Successive fixed-term contracts concluded for the same work may be viewed as an indefinite contract unless the type of work justifies the fixed-term arrangement.

Working hours in Argentina

Typical working hours in Argentina are eight hours per day, 40 hours per week. These are normally worked Monday–Friday with an hour’s break for lunch. In some rural areas, employees may have a three-hour break in the middle of the day for lunch and a siesta. Working hours are regulated by the Working Hours Act.

Maximum working hours in Argentina

According to Argentine employment law, working hours are limited to eight hours per day and 48 hours per week. When employees do night work or work that is considered unhealthy, the maximum length of a shift is seven hours. Employees aged under 18 may work no more than six hours per day.

Overtime in Argentina

Overtime is permitted in Argentina but is limited to 30 hours per month or three hours per day. Any exceptions must be authorised by the Ministry of Labour. Overtime is paid at 150% of the employee’s normal wages, or 200% for work during a rest period. Rest periods are Sundays, public holidays, and after 1pm on Saturdays.

Breaks and rest periods in Argentina

Employees in Argentina are entitled to two hours’ worth of breaks per day. They are also entitled to one continuous break of at least 35 hours every weekend and a 12-hour break between shifts.

Remote work in Argentina

As in many other countries, remote work has become more popular in Argentina over the past few years. A new law on remote work in Argentina was introduced in 2020. The main features of the law are:

  • Voluntary nature: Employees can’t be forced to work remotely, nor can they demand it from their employers. Both parties must agree to the arrangement in writing.
  • Reversibility: The employee may request to return to in-person work at any time. If the employer doesn’t accept the request within 30 days, the employee is de facto dismissed and can claim severance pay.
  • Equality to in-person workers: The law requires employers to treat remote workers and those working in the office equally in terms of rights and salaries.
  • Right to disconnect: Employers and remote employees should agree in writing on the hours the employees will work. Outside of this time, employees have the right not to respond to any communication from their employer, unless ‘essential for an objective reason’.
  • Employer obligations: Employers must provide employees with the tools needed to work remotely and cover the costs of setting up a home office. They must also cover ongoing costs such as increased electricity usage.
  • Software for control of employees: Employers may use software to remotely monitor employees, but this must not interfere with employees’ right to privacy.
  • Employment contracts with non-residents: Employment contracts for non-residents who are teleworking for an Argentinian company from their home country must be authorised by the Ministry of Labour.

Tailored employment contracts in 100+ countries

Like all countries, Argentina has its own rules and regulations when it comes to employment contracts — and non-compliance could land your company in hot water.

Thankfully, our team is experienced in drawing up tailored, compliant contracts in Argentina (and more than 100 countries worldwide). That means that, when you work with us, you won’t need to waste time worrying about whether you’ve got it right. Instead, you can focus on what matters: your business.

Compliantly hire employees anywhere with CXC

With our EoR solution, you can engage workers anywhere in the world, without putting your business at risk. No more worrying about local labour laws, tax legislation or payroll customs — we’ve got you covered.

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