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.
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.
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.
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 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.
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.
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.
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:
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.
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.
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.
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.
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.
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.
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.
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.
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.
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 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.
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.
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:
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.
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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