Argentina: Extension of Prohibition of Dismissals and Furloughs

Decree 624/2020 has extended the prohibition of dismissals: (i) without justified cause; or (ii) due to lack or reduction of work and force majeure, for a period of 60 days as from its original deadline (i.e. the prohibition is now extended until 30 September 2020).

The Decree also extends the prohibition of unilateral furloughs on grounds of force majeure, or lack or reduction of work and this too for a period of 60 days as from its original deadline (i.e. the prohibition is now extended until 30 September 2020).

Exceptions to this prohibition include furloughs provided for in the terms of Section 223 bis of the Labour Contract Law, specifically, furloughs agreed with each employee or the union, approved by the labour authority, for those employees who shall not perform any tasks, due to lack or reduction of work (not attributable to employer) or force majeure (dully evidenced).

The Decree provides that any dismissals and lay-offs in breach of the provisions of this Decree shall have no effect, and the labour relationships and its terms and conditions shall remain in force as before.

The Decree will not be applicable to employees hired after its effective date of 29 July 2020.

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.