Foreword

With the deepening of globalization, when enterprises expand their business in multiple countries, cross-border labor compliance has become one of the most complex and severe challenges. To help enterprises systematically address this issue, we have collaborated with top labor lawyers from over 50 major jurisdictions worldwide (all recommended by Chambers, Legal 500, or equivalent institutions) to jointly compile a Chinese-English labor & employment compliance guide exceeding 1 million words, and we will continuously update relevant key points.

This article publishes the key points of labor & employment compliance in Argentina.

01 Overview of the Labor Law System

1. Legal System 

Argentina operates under a civil law system in which employment relations are governed by a comprehensive statutory and constitutional framework.

2.Resources and Agencies

The National Constitution, through Article 14 bis, establishes fundamental labor rights such as fair remuneration, equal pay for equal work, protection against arbitrary dismissal, unionization and collective bargaining rights, and access to social security. These constitutional principles guide the interpretation and application of statutory labor law.

02 Employment Qualifications and Classification

1. Employment Age

Under Argentine law, children under the age of 16 may not be employed, except for cultural or artistic activities expressly authorized in advance by the labor authority.

2.Qualifications for Foreign Employers

Foreign businesses are not allowed to hire employees directly in Argentina without establishing a local presence.

3.Classification of Employment

Article 23 of the Employment Contract Law establishes a presumption of employment whenever services are rendered personally, on a regular basis, and within the organization or under the direction of another.

4.Foreign Workers

Argentina does not impose quotas or numerical restrictions on the employment of foreign nationals. Companies are free to hire foreign workers as long as the individual holds valid residence and work authorization.

There are two main pathways of obtaining a working visa.

Once authorized, foreign employees are entitled to the same protections and obligations as Argentine workers under the Employment Contract Law, including equal pay, social security, health coverage, union rights, and severance.

03 Recruitment and Employment Contracts

1.Background Examination

In Argentina, there is no comprehensive statute specifically regulating pre-employment background checks. However, employers must comply with general principles derived from labor law, the Personal Data Protection Law and anti-discrimination provisions.

Employers may carry out background checks directly or engage a specialized third party, provided that the applicant’s informed consent is obtained.

2.Contract Types

Under Argentine law, the following contractual modalities are allowed:

• Indefinite-term contracts are the default form.

• Fixed-term contracts.

• Temporary contracts

• Seasonal contracts.

• Part-time contracts.

3.Probationary Period

The probationary period in Argentina applies only to indefinite-term contracts. The statutory probationary period is the first six months of the employment relationship. During this time, the employer may terminate the contract with only 15 days’ prior notice and without severance.

Collective bargaining agreements may establish different durations of the probationary period.

04 Working Standards

1.Remuneration

In Argentina, remuneration is generally structured around a monthly salary plus a mandatory 13th salary.

The statutory minimum wage is set periodically at the national level by a national council. Furthermore, collective bargaining agreements provide for minimum wage scales, and in many cases, they also establish seniority-based increments, productivity bonuses, or other additional payments.

Salaries must be paid periodically and after the end of the work period.

2.Statutory Benefits and Social Security

Employees in Argentina must be enrolled in the national social security system from the first day of employment. The system is financed by mandatory contributions from both employers and employees.

In addition to these contributions, employers must hire an Occupational Risk Insurance with a private insurance company, covering workplace accidents and occupational illnesses, and also provide mandatory life insurance for employees.

3.Working Hours

The statutory working time in Argentina is capped at 9 hours per day and 48 hours per week. Night shifts (between 9:00 p.m. and 6:00 a.m.) are restricted to 7 hours, while in insalubrious or hazardous activities the maximum is 6 hours per day and 36 hours per week, with overtime strictly prohibited. Managers and directors are exempt from these restrictions.

4.Rest and Leave

Argentine law entitles employees to a daily rest period of 12 consecutive hours between the end of one workday and the start of the next, as well as a weekly rest of at least 35 consecutive hours, which generally begins at 1:00 p.m. on Saturday and extends through midnight on Sunday.

In addition, employees are entitled to paid annual vacation leave.

05 Occupational Health and Special Protection

1.Occupational Health and Security

Employers in Argentina must comply with strict occupational health and safety obligations under the Employment Contract Law, the Health and Safety Law (Law No. 19,587), and the Occupational Risks Law (Law No. 24,557).

Employers are generally relieved of direct liability if they are properly insured, except in cases of willful misconduct or gross negligence.

2.Special Protection

Argentine labor law establishes a general duty of equality and non-discrimination. Article 17 of the Employment Contract Law prohibits distinctions based on sex, race, nationality, religion, politics, union activity, or any other condition unrelated to the employment relationship.

Article 245 bis of the Employment Contract Law provides for aggravated severance when dismissal is found to be discriminatory.

Beyond this general rule, Argentine law provides specific protections for employees during pregnancy and maternity.

Union representatives also enjoy special protection against dismissal or disciplinary action throughout their mandate and for one additional year thereafter.

06 Personal Information and Privacy

1.General Rules

Argentina has a comprehensive data protection framework established by the Personal Data Protection Law No. 25,326 and its regulations. This legislation applies to the processing of employee and candidate personal information by employers and has been strongly influenced by European standards.

2.Transnational Transfer

The Personal Data Protection Law prohibits the transfer of employees’ personal data to countries that do not have an adequate level of protection in place except when the employee has expressly consented to such transfer.

07 Anti-Discrimination and Anti-Harassment

1.General Rules 

Argentina has a comprehensive legal framework prohibiting discrimination and harassment in the workplace, based on the National Constitution, the Employment Contract Law, and specific statutes such as Law No. 23,592 on discriminatory acts and Law No. 26,485 on gender-based violence, as well as ratified international conventions (e.g., ILO Convention 111 on discrimination and ILO Convention 190 on violence and harassment at work).

2.Protective Characteristics

Anti-discrimination rules in Argentina cover a broad range of protected characteristics. The Employment Contract Law prohibits unequal treatment based on sex, age, nationality, religious or political beliefs, and union activity.

08 Internal Policies

1.Applicability

Although not mandatory, in Argentina it is a common practice for employers to implement internal policies, manuals, and codes of conduct. These policies may cover issues such as workplace behavior, use of company assets, confidentiality, compliance standards, disciplinary procedures, remote work, annual leaves, and occupational health and safety.

2.Validity

Internal policies do not require prior approval by employees, unions, or labor authorities to be valid. They only require to be aligned with the applicable legal framework.

3.Whistleblowing

Argentina counts with the Corporate Criminal Liability Law (Law No. 27,401), the main statute governing anti-corruption compliance. Within the Law, whistleblowing channels appear as an optional yet recommended aspect of Integrity Programs.

09 Transactions

1.Employment Relationship

In Argentina, the treatment of employment contracts in the context of mergers, acquisitions, or business transfers depends on the type of transaction. In the case of a share deal (equity transfer), the employing entity remains the same, so employment contracts are not affected: employees continue under the same employer, with no change to their terms and conditions.

2.Compensation

Employees are not entitled to additional compensation solely because of a merger, acquisition, or transfer of assets.

10 Termination of Employment

1.Termination Grounds

Indefinite-term contracts may be terminated by the employer either with cause or without cause. Termination without cause entitles the employee to receive severance compensation as provided by law.

2.Termination Procedure

Termination without cause requires prior notice, which must be delivered in writing. The statutory notice period depends on the employee’s length of service: 15 days during the probationary period, 1 month for employees with up to 5 years of service, and 2 months for those with more than 5 years. Employers may opt to provide pay in lieu of notice, equivalent to the salary the employee would have earned during the notice period. Other termination mechanisms do not require the granting of any notice.

3.Termination Protection

Certain categories of employees enjoy special protection against dismissal. Termination during these periods generally does not make the dismissal invalid, but it does trigger aggravated severance obligations for the employer:

• Pregnancy and maternity leave.

• Marriage.

• Union representatives

• Employees enjoying non-related medical leave.

4.Severance and Compensation

When an employee is dismissed without cause, the employer must pay statutory severance under the Employment Contract Law. The main items are:

• Seniority indemnity.

• Payment in lieu of notice.

• Full month payment.

5.Wrongful Termination

If an employee that is dismissed for cause challenges the decision and the court finds the termination unjustified, the employer will be liable for the payment of full severance.

Furthermore, if the termination is deemed discriminatory, the statute provides a special aggravated indemnity equal to 50% of the seniority indemnity, which courts may increase up to 100% depending on the seriousness of the circumstances.

6.Mass termination and Layoffs 

When an employer plans dismissals or suspensions due to force majeure, economic, or technological reasons, affecting more than certain thresholds of the workforce the Preventive Crisis Procedure must be initiated with the labor authority as a precondition to any action.

11 Confidentiality, Non-Compete, and Non-Solicitation

1.Confidentiality

In Argentina, employees are subject to a statutory duty of confidentiality under both the Employment Contract Law, which imposes a general duty of loyalty, and the Confidentiality of Information Law (Law No. 24.766).

2.Non-Compete and Non-Solicitation

During the term of employment, employees are legally obliged to refrain from competing with their employer and from soliciting either the company’s clients or its workforce. A breach of these duties constitutes a violation of the statutory duty of loyalty and entitles the employer to terminate the employment contract with fair cause.

12 Work Representation and Trade Unions

1.Work Representation

In Argentina, under the Employment Contract Law and Law No. 23,551 on Trade Unions, workers in each company may elect union delegates who act as their representatives before the employer.

2.Trade Unions

Argentina has a highly unionized labour relations system based on the principle of exclusive representation. Trade unions are organized predominantly at the industry or sector level, rather than at the company level.

Collective bargaining is widespread in Argentina, with agreements covering virtually all major economic sectors. Although company-level agreements and specialized conventions (such as those for truck drivers or traveling salesmen) also exist, they remain the exception rather than the rule.

13 Dispute Resolution

1.Procedures & Enforcement

Labor disputes in Argentina are generally resolved through a combination of mandatory conciliation and judicial proceedings. In the City of Buenos Aires, employees must first file a claim before the Mandatory Labor Conciliation Service, where both parties are required to attend a hearing with a government-appointed mediator.

2.Waiver & Enforcement

Employees cannot validly waive statutory rights granted by labor law, as these are considered matters of public policy. Any agreement that purports to reduce or waive such rights is null and void.

14 Others

1.Latest Development & Trends 

Argentina has recently undergone a significant labor and employment reform. Legislative changes have extended probationary periods, repealed several employer penalties for misregistration, introduced new rules expressly allowing outsourcing, and created new categories of independent workers with collaborators.

2.Cultural and Religious Considerations

Argentina has a diverse and multicultural workforce. While the majority of the population identifies as Christian (mainly Roman Catholic) employment practices are largely secular, and employers are expected to respect cultural and religious diversity.

* To avoid ambiguity, this article should not be regarded as legal advice.