Argentina: Prohibition of Dismissals and Furloughs Extended

Decree 761/2020 extended the prohibition on dismissals: (i) without justified cause; or (ii) due to lack or reduction of work and force majeure, for a period 60 days as from its original deadline (i.e. the prohibition is now extended until 30 November 2020).

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

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

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

The Decree will not be applicable to employees hired after its effective date.

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.