How to Hire Employees in Argentina: Costs and Checklist

As is well known, the economic situation in Argentina hasn't been stable for decades. This is the reason why inflation, salaries, prices and everything related to their currency changes when the us dolar goes up and down.

Argentinians are very patriotic people, very attached to their culture and their families. They know that if they want to stay in Argentina, they need to make a big effort day by day; and they are willing to do it because of the love that they have for their country.

Lots of argentinians, in the last few years, have emigrated to different countries of the old continent to have a stable and secure life,in terms of economics and other topics; and everywhere argentinians go, they take their culture with them.

On the other hand, there are Argentinians that are looking for working in foreing companies,to generate a better income that will let them live a better life.

In this article, we will talk about which are the requirements to hire argentinians that live in Argentina, and which is the best option to do it.

Data of Argentina

Argentina is a country where 45.808.747 people live, which means it is a large country with lots of diversity in it. There is an entity in the government that controls the laws for the safety and control of safe and legal working conditions in Argentina which is called the Ministry of work,employment and social security.

According to the ministry's website:

“The Ministry of Labor deals with policies, actions and regulations on labor relations, from drafting proposals for laws to establishing regulations on the subject".

This covers forms of contracting, rights and obligations of the parties, documentation and registration of labor relations and everything related to the link between workers and employers.

It is in charge of controlling compliance with regulations through inspections, resolving conflicts, ensuring that work is registered, as well as trying to avoid dismissals, the eradication of child labor and specific work modalities and regimes such as private or agricultural work.

Also, everything related to the unions in terms of their registration and union status, salary negotiations, union conflicts, control and officialization of calls to assemblies, elections, presentation of lists and frameworks, among other topics.

The rise of teleworking or remote work in Argentina was in the pandemic, during 2020, for which "the National Congress approved the legal regime of teleworking contract (Law No. 27,555), which was regulated through Decree No. 27/2021. Likewise, through Law No. 25,800, our country has ratified ILO Convention No. 177 on work from home, which refers to all types of remote work.”

Remote work in Argentina

For remote work to be considered remote work, it must meet these certain characteristics:

• New organizational culture: Promotes learning spaces, transversal communication, encourages multidisciplinary, multicultural, multigenerational and remote interdepartmental work teams with flexible schedules and work for results.
• Voluntary individual contract: You can put together a contract that is agreed by both parties. It is suggested to put together a detail of the rights and obligations of the employee and the employer, specifying aspects of the implementation.
• Work by objectives: Work will not be controlled by the clock, since the concept of presenteeism is becoming obsolete and another of availability and objective achieved in search of greater productivity appears. This includes the right to disconnect.
• Flexible hours: (respecting the working day) – the time and regularity of work are previously agreed so that both bosses and peers know the availability of the teleworker and if there is a face-to-face routine or not.
• Distance + alienation + ICT: The work is carried out remotely in a home outside the employer or not, through the use of Information and Communication Technologies (ICT).
• Specific workplace or not: Remote work can have a specific location or not, as long as there is the consensus of both parties.
• Connectivity: The place where the working day takes place must have a good internet connection to fulfill the assigned tasks.
• ART coverage: Workers must have coverage of their weekly working hours, with approximate hours and mention of face-to-face days. The suggestion is to cover 24/7 so that the employee has a better range of coverage.
• Equality of rights and obligations with the on-site worker: The teleworker enjoys the same rights, benefits and obligations of those workers who perform the same task in the company's establishments; they will be subject to current legislation and Collective Bargaining Agreements.
• Respect for private life: All control systems aimed at protecting the assets and information owned by the company must safeguard the privacy of the worker and the privacy of his home.
• Agreed reversibility: In the voluntary individual contract, it is suggested that the consensus between the worker and the employer to return to face-to-face work or vice versa, return to remote or connected work, be specifically mentioned.
• Work tools provided by the company or the worker: The equipment and tools necessary to carry out the work may be provided by the company/employer and the worker will be responsible for its correct use and maintenance, as is the case in any job. In the agreed case in which the worker uses his own equipment, it is suggested that the company/employer compensate all the expenses and/or amortizations generated by its use.

At the time of signing the employment contract, the parties, employer and worker, must anticipate the following substantial aspects, beyond the data common to any employment contract. Being important then that it appears:

• The will of the worker to carry out his daily work and definition of the place of performance of tasks.
• Type of shift: dynamic, fixed, total or partial.
• Work modality: mixed or totally online.
• Detail of equipment, amortization and compensation for connection costs.
• Specification of software used.
• Notice periods regarding reversibility.
• Right to digital disconnection.
  

Hiring employees legally in Argentina

To be able to hire Argentine talent, it is necessary to do it on behalf of a company, so in the first place it has to be part of a company in Argentina.

The corporate vehicles for the installation of a foreign company in the Argentine Republic are the following: (1) installation of a Branch Office; (2) constitution of a Limited Liability Company or; (3) a Limited Company (Unipersonal or Pluripersonal)

Argentine labor legislation places the following obligations on the Employer:

• Registration of the Employer before the AFIP (Federal Administration of Public Revenues)
• Early registration of workers hired before the AFIP (notice issued by the employer notifying that workers are going to be hired, individualizing them)
• Registration of the Employer and the employees in the ANSES (National Social Security Administration)
• Carry the Labor Books (of Salaries and Wages or equivalent Forms) that must be initialed before the Ministry of Labor
• Employer Affiliation to an ART (Occupational Hazards Administrator)
• Hire mandatory Life Insurance for workers.
  

Regarding social charges, it is necessary to take into account:

Argentine Personnel: Argentine legislation contemplates “contributions” by the Worker and “contributions” by the Employer. They are the ones mentioned below, indicating, in each case, the percentage of the remuneration, for which purpose it must be taken into account that the computable remuneration for this purpose is up to $72,289.62 for social work, ANSAL and ART; and $6,000 for retirement (Law 19,032 and NE Fund)

Regarding the employment contract:

Argentine law establishes that the employment contract is concluded for an indefinite period of time. This means that, as a rule, it lasts until the worker is able to access the retirement benefit. Likewise, the employment contract for an indefinite period has a first section called the trial period, whose extension is three (3) months. During this period, any of the parties -employee or employer- can dissolve the relationship without explanation of cause, without obligation to indemnify and giving reliable prior notice of the will to terminate the contract with the notice provided by law (15 days). Exceptionally, national regulations allow the conclusion of contracts for a fixed period of time. In general, it can be said that their admission is subject to the existence of an objective reason based on the modalities of the tasks or on an activity that justifies this type of hiring.

Holidays (non laboral days)

Supplementary work:

Supplementary work (overtime) is paid with a 100% surcharge of the normal salary if the extra work is done on Saturdays after 1:00 p.m., Sundays or holidays, and with 50% on the remaining days.

Remuneration:

The remuneration of all workers has a base floor, which is the minimum, vital and mobile salary, which is around 421 dollars which are $57.900 Argentine pesos, established by the state.

Argentines also enjoy the Aguinaldo (SAC - Sueldo anual Complementario), also called the 13th monthly salary. This is required by law and is usually paid in two installments, the first one on June and the other one on December. Each installment should be equal to half of the employee's highest monthly salary in the last six months.

Licenses:

National legislation establishes three types of rest: daily rest, weekly rest and annual leave. Regarding the latter, the worker is entitled to 14 calendar days when seniority does not exceed 5 years; 21 when it is greater than 5 and less than 10; 28 if seniority is greater than 10 and less than 20; and 35 if seniority exceeds 20 years.

Situation license:

• An employee with less than 6 months of service is not entitled to leave (although it may be granted at the employer's discretion).
• An employee with 0 years of service up to her 5 years is entitled to 14 days vacation per year.
• Employees with 5 years of service up to their 10 years are entitled to 21 days of vacation per year.
• Employees with 10-20 years of service are entitled to 28 days vacation per year.
• An employee with more than 20 years of service is entitled to 35 days of vacation per year.
  

Holiday license:

• 14 calendar days for employees with less than 5 years of service
• 21 calendar days if seniority is 5 to 10 years
• 28 calendar days, 10-20 years seniority
• 35 days for employees with over 20 years of service
• Employers can also extend an employee's vacation.
• Employers must pay wages and other benefits to employees during their annual leave. This payment is calculated by dividing your salary by 25 and multiplying it by the number of vacation entitlement days. Payment must be made in advance and holidays must start on Monday.
• All employees are entitled to 15 paid public holidays, plus a few "batch holidays" added annually by the Argentine government. The entitlement to leave increases with the length of uninterrupted employment, up to a maximum of 5 weeks or 35 days.
  

Pregnancy/maternity license:

• Workers who give birth in Argentina are entitled to 90 days of leave, paid 100% by the state. This leave can be taken around half the due date, but some employees choose to take the leave unevenly (for example, 30 days before the due date and 60 days after the due date). Released workers can request up to six months of additional unpaid leave.
  

Partner/paternity license:

• Argentina offers two days of paid paternity leave, 100% funded by the state.
  

Sick license:

• Argentinian employees are entitled to sick leave based on length of service. Sick leave varies depending on whether it is a work-related illness or an accident.
• In the event of a work-related illness or accident, the employer must pay her first 15 days of the employee's salary. After 15 days, insurance will cover the remaining costs.
• Employees with less than five years of service are entitled to three months of paid sick leave in the event of a non-work-related illness or injury. Employees with family members are paid for 6 months. During this time, the company is responsible for paying the employee's salary.
• For non-work-related illnesses or injuries, employees with five or more years of service are entitled to six months of paid sick leave. Employees with family members are paid for 12 months. During this time, the company is responsible for paying the employee's salary. If an employee continues to be ill after 12 months of leave, the employer may stop paying, but is obligated to keep the employee employed for an additional 12 months. After this period, the employer and employee must discuss long-term disability or retirement benefits, depending on the nature of the work required and disability.
  

Other Licenses:

• Marriage leave: An employee is entitled to their 10 calendar days of marriage leave.
• Bereavement leave: An employee is entitled to their three days of leave due to the death of a spouse, child, or parent. Also, if a sibling dies, the employee can take her day off.
• Exam leave: Employees can take up to two days off at a time for school exams, but not more than ten days.

Taxes:

Taxes in Argentina are many and there are all kinds, but the best known are:

• Contributions: 17%
• Retirement: 11%
• Law 19032: 3%
• Social Work: 2.55%
• Ansal: 0.45%
• Contributions: 31/32%
• Retirement: 12.71%
• Law 190325: 1.62%
• CASFEC: 5.56%
• NDF: 1.11%
• Social Work: 5.10%
• ANSAL: 0.90%
• ART: 4 / 5%