Labour and employment law in Argentina

Introduction

Argentina’s labour laws are remarkably comprehensive and regulate virtually all the terms and conditions of the employment relationship. Labour laws are public policy and are therefore mandatory. The employer is obligated to grant employees at least what is afforded to them under labour legislation. Hence, an employer can extend benefits on top of the standard provisions, but cannot agree to terms that are less favourable or otherwise detrimental to an employee, nor can an employee waive any known right or privilege established for his/her protection or benefit under the law.

Key Points

• Argentina’s labour laws are pro-employee and have been designed to safeguard the rights of employees and workers, by instituting rules governing working conditions and working hours, providing for payment of salaries during illnesses, setting surcharges on salaries for overtime, establishing annual vacations and requiring the payment of severance compensation in the event of unfair dismissal (dismissal without justified cause).
• Labour law in Argentina is comprised of public order provisions and thus cannot be ruled out, or waived by any agreement, applicable law or jurisdictional clauses subsequently included in any agreements. Accordingly, Argentina’s labour laws will apply – and the labour courts will have jurisdiction – with respect to any eventual labour claim filed with the courts related to work performed in Argentina.
• Employees are entitled to a 13th salary or statutory annual bonus, called “aguinaldo” or “sueldo annual complementario/SAC”, which is payable in two semi-annual instalments, to be paid on 30 June and 18 December. Each instalment is equal to 50% of the highest monthly salary accrued during the corresponding semester.
• Employers must pay a compulsory life insurance for all employees.
• The employer can only change the terms and conditions of employment, provided that those changes are not unreasonable and do not either:
  • modify the essential terms of the employment contract; or
  • cause  material damage to the employee.

Legal framework

• As labour laws are federal laws, the terms and conditions are standardised nationally.
• Labour Contract Law 20,744 (the “LCL”), together with any other complimentary legislation and applicable collective bargaining agreements, tailor the general provisions that govern the conditions of employment.
• Law No. 23,660, the Health Insurance Act, sets forth the measures necessary to establish appropriate health and medical care services to employees and their families.
• Argentina’s Employees’ Pension and Retirement Act (Law No. 24,241) secures access to public funds for employees and independent workers who are eligible to apply for retirement or a pension plan, a disability retirement annuity as well as pension coverage in case of death.
• Law No. 19,587 on Occupational Hygiene and Safety lays down the standards and procedures applicable to all workplace establishments, regardless of the nature of their economic activity.
• The Working Hours Act (Law No. 11.544/1929) regulates working hours.
• Law No. 24,013 regulates temporary personnel service companies.

New Developments

On March 6, 2026, the Law 27,802 that provides several labour reforms was enacted. Please find below the modifications introduced by it on labour legislation:

1. Court Judgments – Instalment Payments: Introduces the possibility of paying labour judgements in instalments, as follows: -Individuals and large companies: up to 6 monthly instalments; Micro, small and medium-sized enterprises: up to 12 monthly instalments; Instalments adjusted by Consumer Price Index (CPI) + 3% annual interest.
2. New Non-Remunerative Social Benefits: Includes meal services, medical plans, automobile expenses (supported by receipts), mobile phone and internet services (used exclusively for work purposes). These benefits are exempt from social security contributions and excluded from the calculation of annual bonus, vacation pay, severance, etc.,
3. Limitation of the Principle of Non-Waivability of Rights: Agreements reducing or waiving rights established solely in individual employment contracts are no longer null and void; non-waiver remains applicable to statutory, regulatory, or collective bargaining rights.
4. Joint Liability – Intermediation: A company held jointly liable may seek reimbursement from the principal obligor.
5. Temporary Services Companies: The user company is no longer required to act as withholding agent for social security contributions.
6. Joint Liability – Subcontracting: Exempts liability if compliance with labour and social security obligations is verified; accessory or ancillary activities are excluded from joint liability.
7. Joint Liability – Economic Group: Companies within the same economic group are jointly liable only in cases involving fraudulent conduct.
8. Creates the Labor Assistance Fund (FAL): Creates a fund to mitigate termination costs without relieving employers of liability. Employers must contribute to a Labor Assistance Fund in an amount ranging between 1% and 2.5% of each employee’s wages. It does not replace severance but may be used to cover it partially or fully. It shall enter into force on June 1, 2026, and its effective date may be extended for an additional six (6) months.
9. Creates the Labor Formalization Incentive Regime (RIFL): Employers covered by the regime will enjoy certain benefits for each new workforce addition. The regime will be in force for a one-year period.
10. Creates a Registered Employment Promotion Program (PER): Allows regularization of unregistered or improperly registered employment relationships existing prior to enactment, within 180 days.
11. Independent Platform Service Providers: Allows regularization of unregistered or improperly registered employment relationships existing prior to enactment, within 180 days.
12. Employment Certificates: Employment certificates must be delivered within 45 business days as from the termination of the employment contract, and their issuance in digital format is authorized.
13. Payslips: Must detail employer-paid contributions and statutory or conventional items; digital issuance and electronic signature permitted.
14. Limitation on the Right to Strike: Trade unions shall be required to comply with a new conciliation and prior notice procedure prior to any collective action, and, in the case of activities classified as essential or of critical importance, a minimum service level of 75% or 50% shall be ensured.
15. Transfer of Jurisdiction: Approves transfer of labour courts from the National Judiciary to the Judiciary of the City of Buenos Aires (CABA).
16. Creation of a Federal Labor Judiciary: The National Labor Court system shall be gradually dissolved. Pending cases remain in National Labor Courts; new cases will be filed in local CABA or federal courts.
17. Opportunity to Submit Evidence: Claimant must submit all evidence at the time of filing the complaint.
18. Dismissal for Inactivity (Lapse of Proceedings): The termination of the judicial proceedings due to the parties’ inactivity is established within the following time periods: 6 months – first/single instance;3 months – appeals or summary/executive proceedings;1 month – incidental matters.
19. Opportunity to Submit Evidence: Claimant must submit all evidence at the time of filing the complaint.
20. Adjustment of Labor Credits: Labor credits shall be updated in an amount equivalent to the variation of the Consumer Price Index (CPI), plus an annual interest rate of 3%.