Argentine employment law: the questions we hear most.

Severance for dismissal without cause equals one month of salary per year of service, or per fraction longer than three months, calculated on the best regular and customary monthly compensation of the last year (Section 245 LCT, as amended by Law 27,802).

Added to that:

• Notice (1 month for employees with between 3 months and 5 years of service; 2 months for those with more than 5 years).
• Integration of the month of dismissal (the days worked in the month the dismissal takes place).
• Pro-rated SAC (the portion of the statutory 13th-month salary not yet paid).
• Pro-rated vacation (accrued vacation days not taken).

The exact amounts depend on the applicable CBA (each collective bargaining agreement sets its own severance cap) and on the changes introduced by Law 27,802 (the Section 245 calculation base, excluded items, interest rates, court costs).

If the company has joined the Labor Assistance Fund (FAL), it may elect to pay severance — in whole or in part — against that fund instead of out of cash. The FAL is not an additional item added to the settlement.

See the full guide to severance for dismissal without cause 2026 (in Spanish) →

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In principle yes, but statutory job-preservation periods apply depending on length of service (Sections 208–213 LCT):

• Less than 5 years of service: 3 months of paid leave.
• More than 5 years: 6 months of paid leave.
• After those periods: 12 additional months during which the position is held open (unpaid).

If the dismissal occurs within those periods, the company must pay wages accrued until medical discharge plus full severance. Dismissing someone during medical leave also triggers, in many cases, a presumption of discriminatory dismissal, carrying aggravated compensation under Section 245 bis LCT or Law 23,592. Each case requires specific analysis.

Common mistake: trying to “save” money by dismissing for cause without solid evidence. If the company loses in court, it pays full severance + interest (changed under Law 27,802) + court costs.

In the City of Buenos Aires (CNAT, the National Labor Court of Appeals), between 2 and 4 years at first instance, plus any appeal. In the Province of Buenos Aires the timelines are longer still. Law 27,802 changed the applicable interest rates, which can now double the amount of an award in long-running cases.

The Labor Assistance Fund (FAL), created by Section 58 of Law 27,802, is a segregated pool of assets earmarked to finance the payment of severance.

Mandatory contribution as of June 1, 2026:

• Large companies: 1% of payroll.
• Micro-enterprises and SMEs: 2.5% of payroll.

The contribution is remitted monthly through ARCA (the federal tax authority, formerly AFIP), together with employer social security contributions. It is neither an additional cost payable to the employee nor an item to be added to the final settlement: it is a fund the company builds for itself.

What is optional: deciding whether, at the time of dismissal, the FAL is used to pay severance (in whole or in part) or the company pays out of cash. The contribution itself is not optional.

Waiting period: the fund only covers employees with at least 12 months of service counted from the start of contributions. A company that begins contributing on June 1, 2026 will not be able to draw on the fund until December 2026.

Status of the implementing rules (May 2026): ARCA, the National Securities Commission (CNV) and the Ministry of Labor have not yet issued the operating rules needed for the fund to work in practice (account opening, authorized administrators, withdrawals). Effective operation will likely be deferred to December 2026, even though the duty to contribute starts on June 1.

Recommended action: build the impact of the contribution on payroll into financial planning from June onward, and monitor publication of the implementing rules.

Case law and legal doctrine require four cumulative conditions. If one fails, the dismissal converts into dismissal without cause, with interest and court costs.

1. Seriousness of the misconduct (Section 242 LCT): the breach must reasonably prevent the relationship from continuing. An isolated late arrival or a minor argument does not meet the standard.
2. Proportionality: the sanction (dismissal) must be proportionate to the breach. A record of progressive discipline (written warning, suspension) strengthens proportionality.
3. Contemporaneity: the dismissal must follow immediately upon learning of the breach. Dismissing three months after the fact weakens the cause.
4. Clear and specific communication (Section 243 LCT): the notice must describe concrete facts (dates, places, conduct). Generic grounds such as “loss of trust” or “repeated breaches,” with no detail, are the single most frequent reason employers lose before the CNAT.

Common mistake we see: dismissing for cause without prior documentary evidence (emails, minutes, formal notices, sanctions). The burden of proof in Argentine employment law works in the employee’s favor — without solid evidence, the cause collapses.

See the full guide to dismissal for cause (in Spanish) →

Job abandonment (Section 244 LCT) is never automatic. It requires a strict procedure that most companies get wrong, and that ends in a lawsuit for dismissal without cause.

Correct steps:

1. Wait a reasonable period of unjustified absence (case law: 3–5 business days without notice, depending on the circumstances).
2. Send a formal notice (carta documento) requiring the employee to report to work and to justify the absences within a set period (typically 48 business hours), with an express warning that failure to do so will be treated as job abandonment.
3. Wait for the notice to be received (postal delivery record) and for the deadline to expire.
4. If the employee does not reply, or replies without justification, send a second formal notice communicating the dismissal for abandonment.

Common errors that invalidate the dismissal:

• Dismissing without a prior demand (this alone voids the grounds).
• A missing or ambiguous warning in the first demand.
• Not waiting for the postal service’s effective delivery period.
• Dismissing after the employee has replied (even if the justification is weak): if there was a reply, there is no abandonment — other grounds would have to be assessed.

A dismissal is presumed discriminatory when it occurs close in time to a protected factor: illness, pregnancy or maternity leave, a formal claim by the employee, a union complaint, a prior demand letter, gender, religion, sexual orientation, age, nationality or political views (Law 23,592 and Section 245 bis LCT).

Consequences for the company:

• Aggravated compensation (typically between 50% and 100% on top of Section 245).
• Possible reinstatement of the employee (in some rulings).
• Moral damages specifically awarded.
• Reversal of the burden of proof: if the employee establishes indicia of a discriminatory factor, the company must prove the dismissal had another real and sufficient cause. In practice, this is very hard to prove after the fact.

High-risk situations:

• Dismissing during medical leave, or immediately after it.
• Dismissing after a written claim or demand letter from the employee.
• Dismissing a pregnant employee, or within 7.5 months after childbirth (Section 178 LCT — statutory presumption). See the guide to maternity protection (in Spanish) →
• Dismissing a union delegate or representative without first obtaining removal of union protection.

Before any separation with these features, a prior risk assessment is essential.

The Crisis Prevention Procedure (PPC) — governed by Law 24,013 and implemented by Decree 265/2002 — is the mandatory administrative step required before dismissals on economic, technological or force majeure grounds affecting:

• More than 15% of headcount in companies with fewer than 400 employees.
• More than 10% in companies with 400 to 1,000 employees.
• More than 5% in companies with more than 1,000 employees.

Benefit for the company: it unlocks the 50% reduction in severance (Section 247 LCT) where the economic cause is proven.

Costs and risks:

• The procedure is conducted before the Ministry of Labor with union participation. Negotiation can be lengthy (60–90 days on average).
• If the company dismisses without the required PPC and it is shown that the procedure applied, the dismissals lose the Section 247 reduction and are paid at 100% of Section 245.
• It is strategically complex: the recommended approach is to run it in parallel with a labor contingency audit, so as to quantify the cost of each scenario (PPC vs. individual separations vs. voluntary exit programs).

Deadline: 30 calendar days to respond through the same channel (carta documento, labor telegram or the RIFL platform).

Consequence of silence or an incorrect reply: the penalties under Sections 8, 9 and 10 of Law 24,013 are triggered, and they can triple severance in an eventual lawsuit.

What to do:

1. Do not reply without counsel. An improvised response can be used against the company.
2. Gather all documentation: contract, pay slips, time records, communications.
3. Consult employment counsel before day 30.
4. The reply must specifically deny what is false, acknowledge what is true, and position the case.

Yes, but a dismissal following a demand letter is treated as a response to that demand, not as an autonomous business decision. If the company dismisses without solid grounds, the employee can argue the dismissal was retaliation for the demand, triggering aggravated compensation for discriminatory dismissal.

Before dismissing after a demand letter, the strategy has to be assessed carefully.

The same instruments apply: carta documento or labor telegram. Typical situations:

• Requiring the employee to justify absences before establishing job abandonment (Section 244 LCT).
• Demanding compliance with employment obligations (submission of a medical certificate, return of company tools, and so on).
• Serving notice of suspensions or disciplinary sanctions.

Every notice must be properly grounded and observe the statutory deadlines. Common errors: claiming abandonment without exhausting the prior steps, or serving notice over facts that are not evidenced.

An internal harassment complaint triggers a legal duty to act on the employer’s part (Section 75 LCT — duty of safety and protection of physical and mental health). Ignoring it or delaying the response can turn into aggravated civil liability and into a presumption of discrimination or constructive dismissal.

Immediate actions (the first 72 hours):

1. Formally record the complaint (date, time, complainant, respondent, facts as described).
2. Adopt immediate protective measures that shield the complainant without prejudging (team reassignment, temporary remote work, physical separation in the office). Do not dismiss the respondent at this stage: without a prior investigation, the sanction will not hold.
3. Open an internal investigation run by an ad hoc committee — or by outside counsel if the respondent holds a senior position. The investigation must be confidential, impartial and documented.
4. Guarantee the respondent’s right to be heard (to respond and to submit evidence).
5. Issue a written conclusion setting out the facts established, those not established, and the resulting decision.

If the complaint is substantiated: a sanction proportionate to the conduct (written warning, suspension, dismissal for cause). Where it leads to dismissal, the cause will hold up in court only with a prior, formally documented investigation.

If the complaint is not substantiated: communicate the conclusion to both parties, keep the record, and monitor for retaliation against the complainant.

Prevention: companies with a documented workplace violence prevention and response protocol, and with periodic staff training, significantly reduce both incidence and litigation exposure.

See the full guide: what a company must do when facing a harassment complaint (in Spanish) →

Careful: union delegates hold statutory union protection (tutela sindical, Section 52 of Law 23,551). To dismiss them, discipline them or change their working conditions, the company must file an exclusion-of-protection proceeding and obtain a favorable ruling before taking the measure.

Dismissing a delegate without first obtaining removal of protection: the dismissal is void, plus reinstatement, plus back wages, plus aggravating factors.

Yes. Every industry has an applicable Collective Bargaining Agreement (CBA) governing:

• Job categories and salary scales.
• Working time, rest periods and industry-specific leave.
• Supplements for seniority, attendance and the like.
• Severance caps.
• Specific contributions and withholdings.

Identifying the applicable CBA is the first step of any labor audit. A company can be paying incorrectly simply by applying the wrong agreement.

It is a comprehensive diagnostic of the company’s employment compliance: registration, contracts, payroll, working time, leave, occupational risk, union situation and contingencies.

It serves to:

• Detect contingencies before they turn into litigation.
• Quantify labor risk in M&A (as part of due diligence).
• Optimize costs (companies sometimes overpay because of errors in CBA, categories or supplements).
• Prepare for an inspection by the Ministry of Labor or the tax authority.

• Before an M&A transaction (always — not negotiable).
• Before a collective separation or a PPC.
• After a significant regulatory change (such as Law 27,802).
• After a change of shareholders or management.
• Every 2–3 years as sound preventive practice.

High risk. If the actual features of the relationship amount to employment (legal, technical and economic subordination), a court will find a disguised employment relationship — with significant financial consequences (retroactive registration, penalties, severance).

When a genuine monotributista (an independent contractor under Argentina’s simplified tax regime) is defensible:

• An independent professional with several clients.
• Specific, non-continuous services.
• No subordination as to schedule or hierarchy.
• No exclusivity.
• Invoices for services actually rendered.

When it is not:

• They work exclusively for your company.
• They keep a fixed schedule.
• They receive daily instructions.
• They use the company’s tools, email and office.

• Indefinite-term contract (the default rule).
• Probationary period (the first 6 months, extendable to 8 months at SMEs under Law 27,802).
• Fixed-term contract (requires an objective justification; maximum 5 years).
• Contingent contract (contrato eventual, for temporary needs).
• Seasonal contract (cyclical activities).
• Part-time contract (reduced hours).
• Remote work (Law 27,555 until December 31, 2026 — from 2027 governed by the general LCT under Law 27,802).

Choosing the right category for each role is part of preventive labor strategy.

Yes, but under the specific regime created by Law 27,802. The reform expressly recognized the figure of the independent provider of private mobility and/or delivery services through technology platforms, excluding them from the general employment regime.

Conditions of the specific regime:

• The provider works autonomously, without subordination as to schedule or location.
• They may offer their services to several platforms at once (no exclusivity).
• They are taxed as a monotributista or self-employed worker.
• The platform must guarantee minimum accident coverage and specific contributions as set by the implementing rules.

Risk if applied incorrectly: where there is real subordination in practice (schedule control, disciplinary sanctions, de facto exclusivity, specific daily instructions), a court may find a disguised employment relationship, with significant financial consequences: retroactive registration, penalties under Law 24,013, severance and unpaid social security contributions.

Companies that are not technology platforms in the strict sense (consultancies, professional services, retail) cannot rely on this regime and remain exposed to the long-standing risk of misclassification if they treat subordinate workers as independent contractors.

Law 27,426 (the pension reform) amended Section 252 LCT and raised the age at which notice can be given. Today the company may require an employee to start pension proceedings when they simultaneously meet two conditions:

1. They are 70 years old.
2. They have the years of contributions required to qualify for the Universal Basic Benefit (PBU).

Correct procedure:

1. Confirm with ANSES (the social security administration) that the employee meets the pension requirements (service and contributions). This avoids invalid notices.
2. Provide the employee with the required documentation for the filing, principally Form PS 6.2 (certification of services and compensation).
3. Serve a formal notice requiring them to start the process, stating on the record that the notice operates as notice of termination.
4. Maintain the employment relationship until either (a) the employee obtains the pension benefit, or (b) 1 year has elapsed since the notice, whichever occurs first.
5. Only then does the contract terminate without severance (Section 252 LCT).

Common errors:

• Serving notice before age 70 → the notice is invalid and a subsequent dismissal is treated as dismissal without cause.
• Failing to provide Form PS 6.2 → this delays the pension filing and can extend the company’s obligation.
• Treating the contract as terminated on the notice alone (before the year elapses or the benefit is granted).

Section 30 LCT makes the principal company jointly and severally liable for the employment and social security obligations of its contractors and subcontractors where the services contracted correspond to its normal and specific business activity.

The company can be released from joint liability by showing that it exercised the oversight duties the statute itself requires over the contractor. In practice, this means requiring monthly and archiving:

1. The contractor’s tax registration certificate (current).
2. Proof of registration in SIPA of the personnel assigned to the engagement.
3. Form F.931 (the social security contributions filing) and proof of payment.
4. Workers’ compensation insurance (ART) for the personnel: coverage certificate and proof of premium payment.
5. Pay slips for the personnel assigned to the engagement.
6. Proof of payment of wages (bank transfer or deposit).

The contract with the contractor should include clauses that: (a) require monthly delivery of all that documentation, (b) entitle the principal to withhold payments in the event of non-compliance, and (c) provide for termination for breach of employment or social security obligations.

The reality of the risk:

• Supreme Court case law is restrictive: joint liability reaches even ancillary activities where they are functionally integrated into the operation.
• Without oversight documentation, the principal loses in court in most cases.
• In M&A due diligence, Section 30 documentation is among the first items reviewed.

Recommendation: audit contractors annually or semi-annually, especially in sectors that rely heavily on outsourcing (cleaning, security, logistics, IT, marketing).