Argentina: Extension of Prohibition of Dismissals and Furloughs

The Decree 487/2020 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 (e.g. the prohibition is now extended until July 30, 2020).

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

Exceptions to this prohibition are the furloughs provided for in the terms of Section 223 bis of the Labor Contract Law, this is, layoffs agreed with each employee or the union, or approved by the labor authority, for those employees that 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 furloughs in breach of the provisions of this Decree shall have no effect, and the labor relationships and its terms and conditions shall remain in force as before.

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.