Transfer of undertakings in Argentina

Employees’ Rights in Case of a Transfer of Undertaking

In case of a transfer of undertaking, employees are transferred as a matter of law. The consent of the employees is not necessary, and no notice is required. The new employer must maintain the employee’s work category, benefits, rights, salaries and seniority acquired with the prior employer, otherwise the terms of employment may be modified, but only for the benefit of the employee. All liabilities of the in-scope employees transfer automatically to the new employer.

The employee may consider himself dismissed on a constructive basis, by reason of the transfer, if the terms of employment are changed to the detriment of the employee or he suffers any damage due to the transfer.

In case the assignment of personnel does not entail a transfer of undertaking, the employee must give his prior written consent and the new employer must maintain the employee’s working conditions. All liabilities of the in-scope employees transfer automatically to the new employer, as in the transfer of undertaking.

Requirements for Predecessor and Successor Parties

 The prior employer will be jointly liable with the new employer for any labour and social security debts arising out of the employment relationship, prior to the date of transfer. The new employer becomes solely liable for those debts generated after the transfer. There is no legal obligation to inform, consult or obtain the authorisation of trade union/employee representatives or labour authorities.