Hiring guide in Argentina

What should I know about hiring in Argentina?

Hiring in Argentina requires understanding the country’s labour laws, employee benefits, and cultural considerations. The Argentine labour market is governed by strict labour regulations, including the Labor Contract Law (Ley de Contrato de Trabajo), which offers strong employee protections. Employers must be aware of mandatory benefits, such as paid vacations, annual bonuses (aguinaldo), and social security contributions. Argentina also has a minimum wage that is periodically adjusted to keep up with inflation and the cost of living.

In addition to legal requirements, employers should consider the cultural aspects of the workforce. Argentine employees value work-life balance and tend to have a collaborative and communicative approach to work. Understanding these cultural dynamics can help businesses foster a positive work environment. It’s also important to consider the time zone difference, as Argentina’s time zone (UTC-3) is well-aligned with North American and European business hours, making remote collaboration easier.

To attract and retain top talent, be ready to offer competitive remuneration packages and advancement opportunities. Lastly, following Argentinian cultural norms and local business practices is a great way to boost loyalty and positive relationships among Argentinian employees.

Why is Argentina a good choice for finding remote employees?

Argentina is a great choice for finding remote employees for several reasons. First, the country has a highly educated workforce with a strong focus on fields such as technology, software development, engineering, and business services. Argentine universities produce skilled professionals who are well-versed in the latest technologies and industry trends, making them valuable assets for companies looking for remote talent.

Second, Argentina’s time zone closely aligns with North America, particularly the U.S., which facilitates seamless communication and real-time collaboration. This is particularly beneficial for companies that need their teams to work together during overlapping hours.

Additionally, the cost of hiring in Argentina can be more competitive compared to other markets, especially in the U.S. and Europe. While offering high-quality work, Argentine professionals often provide more affordable services, helping businesses optimise their budgets without compromising on skill or expertise.

How can Native Teams help you hire in Argentina?

For a streamlined hiring process in Argentina, Native Teams provides essential support through our Employer of Record services. Our solutions are crafted to navigate the intricacies of Argentinian employment regulations, cultural norms, business practices, and language considerations. Our team of skilled tax and legal professionals acts as your trusted partner throughout the recruitment journey in Argentina. We ensure adherence to local payroll requirements, tax obligations, and HR documentation, allowing you to efficiently hire and integrate Argentinian talent into your remote team.

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Hire your first Argentinian employee with Native Teams.

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Legal requirements for hiring in Argentina

Employers must follow a few essential laws and regulations to ensure a fully compliant employment process in Argentina.

Legal framework

Types of employment contracts

Argentina offers a range of employment contracts to suit different work situations, all governed by the Labor Contract Law (LCT) and rooted in strong constitutional protections for workers. The most common type is the indefinite-period contract, which establishes a permanent employment relationship with job security and protections like severance pay in case of unjust dismissal. 

Fixed-term contracts, used for projects with a specific end date, offer flexibility but come with restrictions on renewals to prevent abuse. 

Part-time contracts provide proportionate benefits for workers with reduced hours while learning contracts focus on training and skill development for young workers. 

Service or independent contractor agreements engage freelancers for specific tasks but do not offer employee benefits like health insurance or severance. 

Employers must carefully classify workers to avoid penalties for misclassification, as courts often side with employees in disputes over contract terms. The labour framework is supported by additional laws and collective bargaining agreements that tailor protections to specific sectors like agriculture and household staff.

Content of an employment contract

In Argentina, employment contracts are governed by the Labor Contract Law (Law No. 20,744), which establishes the fundamental rights and obligations of both employers and employees. The law presumes employment to be indefinite unless specified otherwise, with alternative contract types like fixed-term or seasonal contracts subject to strict requirements. Contracts typically include essential elements such as personal information, job details, work schedule, salary, and start date, while written contracts, though not always mandatory, are recommended for legal clarity.

Employment contracts may also include a probationary period of up to three months, during which either party can terminate the relationship without cause. Remuneration must meet the national minimum wage, which is regularly updated, and employees are entitled to a mandatory annual bonus known as the “thirteenth salary,” paid in two instalments.

Key aspects like the right to fair pay and equal treatment are enshrined in the National Constitution, and the law prioritises workers’ rights under the “in dubio pro operario” principle, meaning courts often favour the employee in disputes. Collective Bargaining Agreements (CBAs) can modify the terms of contracts, providing more favourable conditions within specific industries.

Termination of employment is highly regulated, and employers must adhere to proper severance rules, with penalties for non-compliance. Additionally, modern labour laws, such as the Remote Work Law (Law No. 27,555), address the needs of teleworking, ensuring protections for remote employees regarding working hours, equipment, and the right to disconnect.

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Oral, written or electronic employment contracts

In Argentina, employment contracts—whether oral, written, or electronic—are governed by a comprehensive legal framework that ensures employee protection and transparency in the labour relationship. Each form of contract has its specific characteristics, but all must comply with the country’s labour laws, particularly the Labor Contract Law (Law No. 20,744).

Oral Contracts: Though legally binding, oral contracts are more common in informal settings and can present challenges when it comes to proving the agreed terms, especially in the event of a dispute.

Written Contracts: Written contracts provide clarity and legal security, explicitly outlining the terms of employment, including job responsibilities, work hours, salary, and contract duration. These contracts must comply with statutory provisions and collective bargaining agreements. Employers are obligated to provide a copy of the contract to the employee, and any clauses reducing employee rights below the legal minimum are nullified. Written agreements are recommended to avoid ambiguity, particularly for fixed-term or part-time employment.

Electronic Contracts: As digital platforms become more prevalent, electronic contracts are increasingly common in Argentina. These contracts are legally valid if they meet the requirements of the Digital Signature Law (Law No. 25,506), which ensures authenticity, integrity, and non-repudiation through certified digital signatures. 

In all cases, employment relationships are presumed to be indefinite unless explicitly stated otherwise, and fixed-term contracts are subject to strict regulations to avoid misuse. The law places the burden of proof on employers to demonstrate compliance with statutory obligations, including proper wage payments, social security contributions, and adherence to labour protections.

Probationary period

In Argentina, the probationary period is a critical aspect of employment relationships, allowing both the employer and the employee to evaluate the suitability of the job before fully committing to a long-term employment contract. The probationary period is governed by Article 92 bis of the Labor Contract Law (Law No. 20,744) and typically lasts for up to three months.

During this period, the employer can terminate the employment without needing to provide severance as long as the dismissal is not discriminatory or in violation of labour laws. However, the employer must still provide proper notice of termination or pay in lieu of notice, which is usually 15 days. The probationary period also provides employees the chance to leave the job without penalty.

Working hours

In Argentina, the regulation of working hours is grounded in Law No. 11,544, which sets clear guidelines to protect employee well-being and promote a healthy work-life balance. The law establishes standard working hours, provisions for night and hazardous work, and the rules surrounding overtime, ensuring that workers are not overburdened.

The general framework limits working hours to 8 hours per day or 48 hours per week for most employees. This applies across both public and private sectors, ensuring that work schedules are kept within reasonable limits. While breaks and periods of inactivity can be part of the workday, they must be mutually agreed upon and included in the employment contract.

Importantly, employees are entitled to a minimum of 12 hours of rest between the end of one working day and the start of the next, preventing overwork and fatigue. Furthermore, the law emphasises the importance of weekend rest by prohibiting work on Saturdays after 1:00 PM through Sunday.

Breaks and night work

Employees must have at least 12 consecutive hours of rest between workdays, and while meal breaks are mandatory during the workday, the length of these breaks is typically set through collective bargaining agreements or individual contracts rather than explicitly by law.

Night work, which occurs between 9:00 PM and 6:00 AM, is subject to more stringent limits, capped at 7 hours per day due to the added strain of working at night. Similarly, employees involved in hazardous work are limited to 6 hours per day or 36 hours per week, recognising the additional physical and mental demands of such jobs. These restrictions aim to prevent overexertion and reduce the risks associated with night shifts and dangerous environments.

Annual leave

Paid annual leave is guaranteed for all employees, and the length of this leave increases with the employee’s tenure:

• 14 calendar days for employees with 6 months to 5 years of service.
• 21 calendar days for 5 to 10 years of service.
• 28 calendar days for 10 to 20 years of service.
• 35 calendar days for service exceeding 20 years.

Employees must take at least 14 consecutive days of leave, with any remaining days to be used before June 30 of the following year.

Holidays

Public holidays in Argentina are an essential aspect of the nation’s labour laws, offering both cultural recognition and legal protection for workers. The Argentinian holidays are:

• December 25: Christmas Day
• January 1: New Year’s Day
• February/March: Carnival: dates change annually 
• April 2: Malvinas War Veterans Day
• Thursday before Easter (‘Jueves Santo’) 
• Good Friday (‘Viernes Santo’): dates change annually
• May 1: Labour Day
• May 25: Revolution Day
• June 17: General Martín Manuel de Güemes Memorial Day
• June 20: General Belgrano Memorial Day (sometimes known as Flag Day, celebrating the creation of Argentina’s national flag)
• July 9: Independence Day
• December 8: Day of the Immaculate Conception

Wages and contributions

In the complex landscape of Argentine labour law, salary regulations form a critical cornerstone, balancing the rights of workers with the obligations of employers. The foundation of salary regulations in Argentina is laid out in the Labor Contract Law (Ley de Contrato de Trabajo, LCT) No. 20,744. This law, along with subsequent amendments and complementary legislation, establishes the basic principles governing wage payments in the country.

At the heart of Argentina’s wage system is the concept of the Minimum Wage (Salario Mínimo, Vital y Móvil). This is the lowest remuneration that employers can legally pay their workers for a standard workday. The National Council for Employment, Productivity, and the Minimum Wage (Consejo Nacional del Empleo, la Productividad y el Salario Mínimo, Vital y Móvil) is responsible for periodically adjusting the minimum wage to account for economic factors such as inflation and cost of living.

This ensures that workers receive compensation that is sufficient to maintain a basic standard of living, particularly in light of economic fluctuations. Salaries in Argentina must be paid in legal tender (Argentine Pesos) and on a regular basis. According to the LCT, employers are required to pay monthly workers by the fourth working day of the following month. For weekly or daily workers, wages must be paid at the end of their respective periods. This ensures that employees receive timely compensation for their work.

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To calculate the salary and taxes in Argentina, click here.

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Sick leave

Employees are entitled to paid sick leave, with the duration depending on their length of service and family responsibilities:

• Sick leave can range from 3 months for employees with less than 5 years of service to 12 months for those with more than 5 years or if they have dependents.

During sick leave, employees receive their salary or a percentage of it, as stipulated by law.

Parental and maternity leave

Female employees are entitled to 90 days of fully paid maternity leave, typically divided into 45 days before and 45 days after childbirth. This leave can be extended in cases of multiple births or health complications, ensuring the health and recovery of both the mother and child.

Fathers are entitled to 2 days of paid paternity leave, which must be taken within 15 days of the child’s birth. Though brief, this leave ensures new fathers can support their partners and bond with their newborns during the critical early days.

These regulations highlight Argentina’s commitment to providing workers with the necessary time off to rest, recover, and manage family responsibilities.

Termination of the employment relationship

The termination of the employment relationship in Argentina is governed by strict legal guidelines to protect both the rights of the employee and the obligations of the employer. The Labor Contract Law (Ley de Contrato de Trabajo, LCT) No. 20,744 establishes the conditions under which an employment contract can be terminated, as well as the procedures and compensation requirements associated with such termination.

There are several ways in which the termination of an employment relationship can occur. Dismissal is one of the most common forms of termination, and it can either be justified or unjustified. 

In cases of justified dismissal, the employer must provide a valid reason, such as misconduct, poor performance, or a breach of contract, and must follow the proper procedures for termination. For unjustified dismissal, the employee has the right to severance pay. The severance pay is calculated based on the employee’s length of service, with the amount varying depending on the duration of employment.

Resignation is another form of termination, and this occurs when the employee voluntarily ends the employment relationship. In this case, the employee is not entitled to severance pay unless the employer has acted in a way that forced the resignation, such as in cases of constructive dismissal.

Ordinary dismissal by employer

Ordinary dismissal by the employer in Argentina refers to the termination of an employee’s contract by the employer without any specific reason, also known as unjustified dismissal. Argentine labour law protects employees from being dismissed arbitrarily and sets clear rules for employers to follow in these situations. Under the Labor Contract Law (Ley de Contrato de Trabajo, LCT) No. 20,744, the employer must adhere to legal requirements to avoid costly consequences.

In ordinary dismissal, the employer does not need to provide a cause or reason for ending the employment relationship. However, there are legal processes and payments that must be followed to ensure compliance with the law and protect the employee’s rights. When an employee is dismissed without cause, they are entitled to severance pay (also known as indemnization). This severance pay is calculated based on the employee’s length of service and includes:

1. One month’s salary for each year worked, or a proportional amount if the employee worked for less than a year.
2. Unused vacation days or paid time off.
3. Any outstanding wages or benefits.

This compensation is provided to the employee to help mitigate the impact of losing their job without cause and ensures they are not left without financial support.

Notice period and challenging the dismissal

In Argentina, employers are required to provide a notice period when dismissing an employee, or they must compensate the employee in lieu of notice. If an employee believes their dismissal was unjust or unlawful, they have the right to challenge it in labour courts. The court can reinstate the employee, grant severance pay, or award additional damages depending on the circumstances surrounding the dismissal. The law provides substantial protection to employees, ensuring they are not dismissed arbitrarily or in violation of their rights.

Rights and obligations of unemployed individuals

In Argentina, employees who are involuntarily terminated (either by dismissal without cause or employer bankruptcy) are eligible for unemployment insurance. This program provides financial assistance for a specified period to individuals who have contributed to the National Social Security System (ANSES).

The amount of unemployment benefit is calculated based on the individual’s previous wages and the length of their contributions to the system. Benefits can range from a temporary allowance to more substantial financial aid, typically paid monthly, for a maximum of 12 months, depending on the individual’s work history

To qualify, workers must have worked a minimum number of months in the formal labour market and must not have resigned voluntarily. Also, they must actively seek new employment, comply with registration requirements, and report any changes in their circumstances to continue receiving benefits. These rights and obligations are designed to help individuals transition between jobs and maintain a basic standard of living while contributing to the country’s social security system.

Severance pay

Severance pay in Argentina is a crucial financial safeguard for employees who are dismissed without just cause. Governed by the Ley de Contrato de Trabajo (LCT), it ensures that employees receive compensation to support them as they transition out of their jobs. The goal of severance pay is to balance the employer’s ability to end an employment relationship while providing financial security for the employee who is suddenly without work.

According to Article 245 of the LCT, severance pay is calculated based on the employee’s length of service and monthly salary. Specifically, an employee dismissed without just cause is entitled to compensation equal to one month’s salary for each year of service or a fraction of a year exceeding three months. The compensation is calculated using the highest monthly, normal, and regular salary earned by the employee during the final year of service. However, the salary used in this calculation may not exceed three times the average remuneration specified in the relevant collective bargaining agreement.

There are some minimum guarantees in place: severance pay cannot be lower than one month’s salary or 67% of the monthly salary, even in cases where the employee’s salary or service length is lower.

Probationary period

In Argentina, the probationary period is an integral part of an indefinite-term employment contract, typically lasting six months. This trial phase provides both the employer and the employee an opportunity to evaluate the suitability of the employment relationship. During this period, either party can terminate the contract without the need to provide a specific cause or reason, allowing for greater flexibility in decision-making.

The standard probationary period is six months, although, under certain conditions, it may be extended. This period is designed to allow both the employer and employee sufficient time to assess compatibility, performance, and job fit. It offers a chance for the employer to evaluate the employee’s qualifications and suitability for the role while also giving the employee the opportunity to determine whether the job meets their expectations.

Prohibition of competition

In Argentina, the prohibition of competition is regulated under the Ley de Contrato de Trabajo (Labor Contract Law), which allows employers to implement clauses restricting employees from engaging in competitive activities after the termination of their employment. These clauses, often referred to as non-compete clauses, aim to protect an employer’s legitimate business interests, including proprietary information, trade secrets, and customer relationships.

Remote working policy

In Argentina, remote work is regulated by Law No. 27,555, also known as the “Teleworking Law,” which took effect on April 1, 2021. This law ensures that remote workers have the same rights and benefits as office-based employees, including equal pay, the provision of necessary equipment, and a “right to disconnect,” meaning employers cannot require work outside agreed hours. Remote work must be voluntary and agreed upon in writing, and workers have the option to return to in-person work if desired.

Employers must provide equipment, cover setup and maintenance costs, and ensure occupational health and safety. They must also register remote work contracts with labour authorities and update policies on cybersecurity and data protection. Data privacy is a key aspect, with employers prohibited from using invasive monitoring software.

The law also supports union rights for remote workers and requires employers to facilitate virtual communication with union representatives. In terms of judicial interpretation, recent cases have affirmed the employer’s responsibility for work-related accidents occurring during remote work. Additionally, cross-border remote work presents legal challenges, such as determining the applicability of Argentine labour laws for foreign employers hiring Argentinian workers.

Responsibilities within a remote work arrangement

Remote working in Argentina, defined by Law No. 27,555, allows employees to perform tasks outside the employer’s premises using digital communication. It is a voluntary arrangement requiring mutual consent. Both employers and employees have specific responsibilities to ensure a fair and safe working environment.

Employer Responsibilities:
Employers must formalise the telework arrangement in writing, provide necessary equipment, and cover related expenses. Remote workers should receive the same rights and benefits as on-site workers. Employers must also ensure health and safety, conduct risk assessments, and respect employees’ right to disconnect outside working hours.

Employee Responsibilities:
Employees must adhere to agreed schedules, maintain communication with their employer, and follow data protection guidelines. They are responsible for setting up a suitable workspace, maintaining employer-provided equipment, and reporting any issues promptly. These shared responsibilities ensure a balanced and legally compliant remote work environment.

Health and safety at home

Under Law No. 27,555, employers must monitor remote workers’ performance while respecting privacy rights, ensuring that any surveillance complies with data protection laws. The law also grants employees the “right to reversibility,” allowing them to return to on-site work if needed. Employers must provide continuous training and accommodate any additional requirements from collective bargaining agreements (CBAs), such as expense reimbursement for remote work costs.

Employees are responsible for maintaining company equipment, ensuring a safe workspace, and adhering to designated working hours, with the right to disconnect outside of those hours. They must also comply with health and safety standards and notify employers of any risks.

Legal precedents stress the importance of balancing monitoring with privacy rights, while data protection laws require employees to safeguard sensitive information. Employers must compensate workers for remote work expenses, including electricity and internet, ensuring reimbursements are fair.

Intellectual property rights

In Argentina, intellectual property (IP) is protected by laws covering copyrights, patents, and trademarks. Copyrights automatically protect original works like literature and art, while patents safeguard inventions for up to 20 years. Trademarks distinguish goods or services and protect brand identity.

For employees, IP created during work typically belongs to the employer, especially if it’s part of the job. In remote work settings, clear agreements should outline who owns any work-related creations to avoid disputes. Employers and employees should define IP ownership in contracts to ensure clarity.

Employee data privacy

In Argentina, employee data privacy is governed by the Personal Data Protection Law (Law No. 25,326), which ensures that employers handle employee personal data responsibly. Employers are required to obtain explicit consent from employees before collecting or processing their personal data. The data must be relevant, accurate, and used only for the intended purpose.

Employers must also implement adequate security measures to protect employee data from unauthorised access, alteration, or loss. Employees have the right to access, correct, or request the deletion of their personal data, and they must be informed about how their data is being used.

In remote work, monitoring tools or data collection systems must comply with privacy regulations and should not infringe on employees’ privacy rights.

What are the advantages of hiring employees from Argentina vs other countries?

Hiring employees from Argentina offers several advantages, including cost-effectiveness, skilled labour, and cultural compatibility. Labour costs in Argentina are generally lower than in many developed countries, providing significant savings for businesses, especially in fields like technology, engineering, and finance. Despite lower costs, Argentina has a highly educated workforce, producing professionals with strong qualifications.

The country’s cultural compatibility, particularly with Western nations, is another benefit. Many Argentine professionals are fluent in English, making communication easier, and Argentina’s time zone aligns well with North America and Europe, facilitating real-time collaboration.

Argentina also offers government incentives for foreign investment, particularly in tech sectors, and the growing remote work culture supports global teams. Additionally, Argentina’s strong internet infrastructure and ties to European markets provide further benefits for international businesses.

Why use Native Teams for hiring in Argentina?

Native Teams lets you employ team members “like a local”, meaning you get all the benefits of a global team wherever you are based. Here are the reasons why you should use Native Teams for hiring:

• No paperwork: We will handle all the necessary paperwork for you.
• Save on taxes: We help you handle your taxes.
• No company set up: You can expand your business using our company entitles.
• Online onboarding: We’re here to ensure your onboarding process is trouble-free.
• No accounting: We will handle all your accounting needs, including invoicing, payroll, and more.
• Increase your profit: We assist you in growing your business and maximising your profits.
• Compliance expertise: we can assist your company in navigating the regulatory environments and ensure you meet all relevant requirements.

Local support: We can assist you in understanding and complying with the relevant local laws.