Argentina: Double Compensation Extension Regarding Dismissal Without Justified Cause

Decree 528/2020 extended for a 180 days term the occupational public emergency declared by Decree 34/2019. During such 180 days term and until December 7th 2020, in case of dismissal without justified cause, the employee will be entitled to collect twice the severance compensation provided for dismissal without cause. Duplication involves all the severance compensation items derived from dismissal without cause. Additionally, duplication will be applicable in the case of constructive dismissals pursuant to section 246 of Labor Contract Law 20.744.

Duplication will not be applicable to the personnel hired after December 13th 2019 nor the national public sector.

In the recitals of the Decree it was established that, regardless of the dismissals prohibition regarding dismissals without justified cause and due to lack of work or work decrease provided by Decree 329/2020 extended by Decree 487/2020, it is admitted the possibility of applying the duplication to employment terminations by employee alleging a serious breach of employer or to the acceptance by employee of the legal effect of the termination, specially, considering such cases in which is turns difficult to proceed with reinstatement, whether due to the non-registration of the employment relationship or the cessation of activities.

Although the foregoing has not been included expressly in the legal provisions, it will be considered a source of rights by the labor courts in the case of an eventual judicial conflict.

Term extension regarding furloughs pursuant to section 223 bis LCL

Decree 529/2020 established that the maximum terms provided by sections 220, 221 and 222 of the Labor Contract Law 20,744 (“LCL”) for furloughs, will not apply for those furloughs due to lack of work and force majeure pursuant to section 223 bis of LCL within the scope of the health emergency, which may be extended until the termination of the mandatory and preventive social isolation.

This report cannot be considered as legal or other advice by Allende & Brea or as including all the subjects of the matters described herein. For additional information on any matter related to labor issues in Argentina, please contact Nicolás Grandi (ngrandi@allende.com) at +54 (11) 4318-9984.

For more information please contact Joseph Granato, Communications Manager at L&E Global at joseph.granato@leglobal.org.