Argentina

Employers in Argentina must provide written notice to terminate an employee. Reasons for termination may include employee conduct, or inability to perform the work required. The employer may not modify the reason for termination after the fact, so it is important to provide accurate information throughout the termination process.

Terminations in Argentina can be complicated. Different situations and justifications for termination can have significant effects on factors such as severance pay.

Notice periods for termination in Argentina depend on how long the employee has worked for the company.

• During the probationary period, employees are entitled to 15 days of notice.

• Employees with less than five years of service are entitled to one month of notice.

• Employees with more than five years of service are entitled to two months of notice.

In lieu of notice, Argentine employers may pay employees for the same number of days as the notice period. For example, a company in Argentina could terminate an employee with 10 years of service immediately as long as the company paid the employee two months’ wages, in addition to any required severance pay.

Severance pay in Argentina depends on the tenure of the employee and the conditions of dismissal. Employees terminated without cause are entitled to several forms of severance pay, including:

• Seniority compensation, based on the employees highest monthly salary

• Compensation in lieu of prior notice, outlined in the previous section

• Compensation for any remaining days in the month, if the employee is terminated prior to the end of the month

• Compensation for unused vacation time

• Proportional compensation for the 13th month salary

• Special compensation for union delegates in certain cases

• Special compensation for pregnant employees terminated within 7.5 months before or after the due date

• Special compensation for employees on sick leave

By law probation period of new permanent employees is 3 months. We advise against using fixed term agreements. An extraordinary requirement is required by law in order to duly justify a fixed term contract. Continuous use of such fixed term contracts or in excess of legal requirements will automatically convert it into a permanent labor contract. No probation period is required for these fixed term agreements.