Background Checks

In Argentina, employers are prohibited from conducting criminal background checks on employees. Only the individual concerned may request their criminal record and voluntarily provide it to the employer.

Verification and New Hire Reporting

Employers must:

• Register the employee with AFIP (Federal Administration of Public Revenue) before the employee’s first day of work.
• Enroll the employee in the national social security system and assign them to a health insurance provider (obra social).
• Report the new hire to the Ministry of Labor through the SIPA (Integrated Pension System) and SUSS (Unified Social Security System) platforms.
• Provide mandatory insurance coverage, including Life insurance and Occupational risk insurance (ART)

Failure to comply with these steps can result in fines and legal liabilities.

Onboarding Process & Documentation

Upon hiring a new employee, employers must collect and process the following:

• Signed employment contract (if applicable, especially for fixed-term or temporary roles)
• National ID (DNI) or valid work permit for foreign nationals
• CUIL (Código Único de Identificación Laboral): The employee’s unique labor identification code
• Bank account details for salary deposits
• Tax forms (AFIP registration and income tax withholding forms)
• Social security registration (via AFIP)
• Medical fitness certificate from the mandatory pre-employment medical exam

Providing Employee Rights and Obligations

Employers are legally required to inform new hires about:

• Working hours, salary, and benefits
• Probation period terms (if applicable)
• Leave entitlements (annual leave, sick leave, maternity/paternity leave)
• Social security and health insurance coverage
• Workplace safety protocols
• Union representation and collective bargaining agreements (if applicable)

This information is typically included in the employment contract or a welcome/onboarding packet.

Healthcare

Employers must contribute 6% of an employee’s monthly salary to healthcare, while employees contribute 3%. These contributions are capped at 3,055,220 Argentine pesos (as of March 2025)

Shift Toward Private Healthcare Providers

• Under Ministry of Health Resolution No. 1/2025, employers are now required to direct the full healthcare contribution (both employer and employee portions) to the employee’s contracted private healthcare provider (e.g., empresa de medicina privada or EMP), if the employee is enrolled in the private prepaid system.
• This replaces the previous system where contributions were routed through obras sociales (union-run health funds), which retained a portion and passed the rest to private providers.

Coverage Requirements

• Private providers must now fully cover the statutory minimum healthcare services (Programa Médico Obligatorio – PMO) for employees and their dependents.
• If the total contribution is insufficient to cover the premium, the employer or employee must pay the difference, typically the employer.

Employee Choice

• Employees had until March 31, 2025, to opt to remain with an obra social instead of switching to a private provider.
• Employees can switch between providers (public or private) once per year.

Supplemental Coverage

• Most employers offer supplemental healthcare beyond the statutory minimum, often combining obra social and private prepaid plans.

Retirement

Current Retirement Age is 65 for men and 60 for women. The government is considering raising the retirement age as part of broader reforms to address demographic and financial pressures.

New Pension Option: Prestación de Retiro Proporcional: This new benefit allows individuals to retire with fewer than 30 years of contributions, which was
previously the minimum requirement. Pensions under this scheme will be proportional to the number of years contributed, meaning lower payouts for shorter contribution histories.

Employment Contract Details

Written employment contracts are not mandatory for permanent, full-time employees who work on-site. This is because labor laws are comprehensive and mandatory, governing nearly all aspects of the employment relationship.

Instead, employers must:

• Register the employee in the company’s labor books and with the tax authorities.
• Pay social security contributions and taxes on all wages.
• Provide monthly salary slips to the employee.
• Offer mandatory life insurance and occupational accident insurance.

Fixed-term contracts are subject to specific legal requirements:

• A written contract is mandatory.
• The contract must be justified by an extraordinary need.
• The maximum duration is 5 years.
• Employers must provide advance notice of termination (between 1 and 2 months).

Failure to do so cannot be compensated and will convert the contract into an indefinite term one.

• If the employer terminates the contract without cause before its end, the employee may claim damages, often equivalent to wages through the original end date.
• Upon expiration, the employer must pay 50% of the standard severance compensation.
• No trial period applies to fixed-term contracts.

Temporary contracts are used for extraordinary and transitory needs where the end date is uncertain. Key features include:

• A written contract is required.
• The specific cause must be clearly stated and proven.
• No trial period is allowed.
• No notice is required upon termination.
• No severance is owed at the end of the contract.
• The contract is limited to 6 months per year and 12 months over a 3-year period (Law No. 24,013).
• It may be executed directly by the employer or through a licensed employment agency.

In the latter case, the employer is jointly and severally liable for all labor and social security obligations, including severance.

Probation Period

The period is on average three months, the employer has no obligation to pay severance but must notify the employee of the termination 15 days in advance.

Visas

Types: Business, Transitory, Work, Investor, Technical, Tourist.

General Requirements: Passport, visa form, photos, itinerary, financial proof, invitation letter.

Process: Apply online or at consulate, attend interview, receive visa.

Compliance: Stay within visa scope and duration

Independent Contractors

Argentina has strict rules distinguishing employees from independent contractors to prevent misclassification:

The distinction is based on “subordination”:

• Employees: Work under the employer’s control, follow internal rules, and receive benefits.
• Independent Contractors: Operate autonomously, manage their own schedules, and bear business risks.

Misclassification Risks:

Employers who misclassify workers may face:

• Fines
• Back payments for wages, benefits, and social security
• Legal action and reputational damage

Contracts must clearly define the nature of the relationship. Courts will look beyond the contract at the actual working conditions.

Argentina is part of a broader Latin American trend toward tightening enforcement and clarifying contractor classifications.

Paid Time Off

Employees in Argentina are entitled to paid vacation based on their length of continuous employment:

• Less than 5 years: 14 days of leave
• 5 to 10 years: 21 days of leave
• 10 to 20 years: 28 days of leave
• More than 20 years: 35 days of leave

New employees accrue leave at a rate of 1 day for every 20 days worked.

During annual leave, the employer must provide employees with full salary and any additional entitled benefits. The leave payment is calculated by dividing the employee’s salary by 25 and multiplying it by the number of leave days

Public Holidays

• New Years Day
• Carnival
• Memorial Day
• End of Ramadan
• Day of Veterans
• Passover
• Maundy Thursday
• Good Friday
• Seventh day of Passover
• Last day of Passover
• Labor Day / May Day
• National Day
• Eid al-Adha
• Commemoration of General Don Martin Miguel de Guemes
• Flag Day
• Muharram/New Year
• Independence Day
• San Martin Day
• Rosh Hashana
• Yom Kippur
• Day of Respect for Cultural Diversity
• National Sovereignty Day
• Immaculate Conception
• Christmas Day

Bereavement

Employees are entitled to 3 days of leave for the loss of a spouse, child, or parent. If a sibling passes away, they receive 1 day of leave.

Maternity Leave

Maternity leave in Argentina is 90 days, distributed as follows:

• At least 30 days must be taken before childbirth.
• The remaining leave is typically split into 45 days before and 45 days after delivery.

Maternity leave payments are covered by the Argentine Social Security system

Paternity Leave

Employees are entitled to 5 days’ unpaid leave at the time of birth or adoption of a child.

Parental Leave

There are no provisions for Parental leave in Argentina.

Sick Leave

Employees with less than 5 years of service are entitled to a maximum of 3 months of paid sick leave. Employees with more than 5 years of service receive up to 6 months of paid sick leave.Sick leave payments are covered by the employer. However, Employment Risk Insurance, which is mandatory for employers, covers costs related to treatment, sick pay, or rehabilitation in the case of work-related accidents, injuries, or illnesses.

Termination Requirements

Employers in Argentina must justify any termination unless:

• Both parties agree to the termination mutually.
• The employee fails to meet work requirements.
• The employee commits severe misconduct.
• Economic factors require dismissal.

Notice Period

Employees must provide notice before leaving the company:

• Between 3 months and 5 years of service: 1 months’ notice.
• More than 5 years of service: 2 months’ notice

Severance Pay

Employees dismissed without reasonable cause are entitled to compensation equal to 1 month’s salary for each year of service (or period exceeding 3 months).

Severance pay is determined based on:

• The highest monthly regular compensation received within the past 12 months.
• A baseline cap of three times the monthly payment (based on the applicable collective bargaining agreement, or CBA).
• If an employee is not subject to a CBA (typically senior employees), general industry limits still apply.
• In all cases, the severance amount must not be lower than 1 month’s salary.

Modifications Based on Employment Conditions

• Severance pay may be increased or reduced in specific scenarios, such as:
• Force majeure or work reduction.
• Employee’s death or retirement.
• Employer bankruptcy.
• Employee illness or pregnancy.

Unemployment Insurance

Employees who are dismissed without cause or due to force majeure may be eligible for unemployment benefits. The National Administration of Social Security (ANSES) oversees unemployment benefits.

Anti-Discrimination Practices

Employers have a legal obligation to maintain a safe and respectful work environment, free
from:

• Sexual harassment
• Psychological harassment (mobbing)
• Discriminatory behavior

Employer Responsibilities

• Implement internal policies and reporting mechanisms
• Take immediate action upon receiving complaints
• Provide training and awareness programs
• Ensure confidentiality and non-retaliation for complainants

Employers can be held liable for damages if they fail to prevent or address harassment in the workplace.

Workplace Safety Standards

Employers are legally required to maintain a safe and healthy work environment under the Labor Contract Law (Law No. 20,744) and complementary regulations.

Key Requirements:

• Conduct risk assessments and implement preventive measures.
• Provide personal protective equipment (PPE) where necessary.
• Offer training on occupational health and safety.
• Maintain emergency protocols and first aid resources.
• Comply with inspections and audits by the Ministry of Labor

Workers’ Compensation

Argentina operates a mandatory worker’s compensation system governed by the Occupational Risk Law (Law No. 24,557). This law requires employers to provide coverage for work-related injuries and occupational diseases through Occupational Risk Insurers (ARTs – Aseguradoras de Riesgos del Trabajo).

Key Employer Obligations:

• Register with an ART and pay monthly premiums.
• Ensure all employees are covered from the first day of employment.
• Report workplace accidents and occupational illnesses immediately.
• Cooperate with ARTs in providing medical care, rehabilitation, and compensation.

Employee Rights:

• Access to free medical treatment, rehabilitation, and medications.
• Wage replacement during recovery (usually a percentage of the salary).
• Compensation for permanent disability or death.
• Job reinstatement or reassignment if unable to return to the original role.

Labor Law Sanctions

• Unlawful Dismissal Without Just Cause: Employers who terminate employees without valid cause must pay severance compensation, which includes one month’s salary per year of service, plus additional penalties for lack of notice or improper documentation
• Failure to Register Employees: Not registering workers with social security and tax authorities can lead to fines of up to three times the unpaid contributions, plus criminal liability in severe cases
• Non-Payment of Mandatory Benefits: Employers who fail to pay wages, bonuses, or social security contributions face court-ordered payments, interest penalties, and potential business closure orders
• Discrimination or Harassment: Discriminatory practices or workplace harassment can result in civil damages, reinstatement orders, and public sanctions under anti-discrimination laws
• Violation of Working Time Regulations: Breaching rules on overtime, rest periods, or vacation entitlements may lead to fines and labor court claims, especially if not compensated properly
• Misclassification of Employment: Treating employees as independent contractors to avoid obligations can result in retroactive benefit payments, fines, and reclassification by labor courts
• Obstruction of Labor Inspections: Preventing or misleading labor inspectors can lead to administrative sanctions, including temporary suspension of operations
• Failure to Comply with Court Orders: Ignoring labor court rulings, such as reinstatement or compensation orders, can result in escalating fines and criminal contempt proceedings.