1) Dismissal in Argentina

The regulation of dismissal in Argentina under the Ley Bases has introduced some additional rules to the ones that were set forth in the Employment Contract Law No. 20.744 (Ley de Contrato de Trabajo, hereinafter, the LCT)

The LCT defines the so-called just cause for dismissal, in general terms, as the non-compliance with the obligations arising from the employment contract that constitutes an injury and that, due to its severity, do not allow the continuation of the relationship (article 242).

It will be a judge in each case who will decide whether the proven facts that motivated the dismissal were serious enough to justify the extreme disciplinary measure of dismissal.

Until the “Ley Bases”, there was no listing of events that the law presumed or declared just cause for dismissal.

2) Dismissal in Argentina under the Ley Bases: direct action measures

The Labor Reform in Argentina by the “Ley Bases” defines, expressly and specifically, events that may be considered serious labor offenses and just cause for dismissal: active participation in blockades or sit-ins of establishments.

This participation in direct action measures may consist of:

a) Affecting the freedom of work of those who do not adhere to the measure of force, by acts, deeds, intimidation, or threats;

b) Impeding or obstructing the entry or exit of persons and/or things to or from the establishment, in whole or in part; and

c) Causing damage to persons or things belonging to the company or third parties located on the premises (installations, merchandise, supplies and raw materials, tools, etc.) or withholding them unduly.

However, for the offense justifying dismissal to be configured, the employer must give notice to the worker to cease the offending conduct, except in the case of damage to persons or things, where the production of the damage allows direct dismissal without the need for such notice (article 94 of the “Ley Bases” replacing article 242 of the LCT). In cases of damage, civil actions for compensation could be brought up against the worker who caused the damage.

Of course, in all cases, the facts that may constitute an injury (such as those that require prior intimation and persistence in the same) or directly constitute an injury (such as damages) must be duly documented by the employer to be able to prove them in possible lawsuits (for example, through a public notary recorded evidence).

3) Dismissal in Argentina under the “Ley Bases”: discrimination

The Labor Reform in Argentina by the “Ley Bases” defines discriminatory dismissals as those effected grounded on race or ethnicity, religion, nationality, ideology, political or trade union opinion, sex or gender, sexual orientation, economic position, physical characteristics, or disability.

When dismissals are deemed discriminatory, a severance increase of between 50% and 100% of the compensation for seniority applies, subject to judicial assessment of the seriousness of the facts. The compensation provided may not be accumulated with any other special regime establishing compensation increases.

Finally, the “Ley Bases” states that in the event of a discriminatory dismissal, the worker may not request a job reinstatement. The employment termination will be definitive and will only entitle the worker to an increase in compensation (Article 95 of the Basic Law, which incorporates Article 245 bis of the LCT).

4) Labor reform in Argentina

If you are interested in an overview of the new labor reform in Argentina introduced by the so-called Ley Bases, you can read the following article in our Legal Blog: Significant labor reform in Argentina: what can’t companies ignore about the Ley Bases?

If you want to know about the opportunity and benefits provided by the Bases Law to regularize labor relations and the repeal of the astronomical fines that weighed on companies, visit the following post of our Legal Blog: Regularization of labor relations in Argentina by the “Ley Bases”. Repeal of labor fines.

For the new possibility of having “independent workers”, see our report: Self-employed workers in the Ley Bases of Argentina: who is included, who is not, and which presumptions apply.

About the possibility of outsourcing workers in Argentina, reading the following publication will give you the basics: Outsourcing of workers in Argentina: what happens when employees are hired and placed at the service of other companies under the Ley Bases?

Should you want a complimentary full report on the labor reform in Argentina by the Ley Bases in PDF format specially prepared by our firm, please, contact us.

5) New investment promotion regime in Argentina: the so-called “RIGI”

For an introduction to the new investment promotion regime created by the Ley Bases, we invite you to read our article: New investments promotion in Argentina: the so-called “RIGI”.

If you wish to know who qualifies for the RIGI, you can read the following post of our Legal Blog: Who qualifies for the Large Investments Regime in Argentina?

Should you want to learn about the significant benefits for foreign inveestors that the RIGI brings, please, find the basics here: What are the benefits for investors in Argentina under the RIGI?.

If you would like a complimentary full report in PDF format specially prepared by our firm about the RIGI, please, contact us.

Mario E. Castro Sammartino

For additional information on these or any other issues related to doing business in Argentina, please, sign up for our Legal Blog or contact us at any time. Our publications exclusively express the author´s opinion and do not purport to be legal counsel on any case. Should you need it, you must consult with your trusted lawyer.​

More publications on companies