Continuing with our series of articles covering different labor issues in Argentina, we will cover now hiring employees in Argentina.

(i) Incorporating a company

Employees working in Argentina must be registered in the labor records of a domestic legal entity. Therefore, foreign companies wishing to hire resident workers must incorporate either a subsidiary or a branch[1], register the chosen legal vehicle as an employer with the tax agency and comply with all other formalities required by law, such as having the labor records authorized by the authorities, register each employee in the company records.

(ii) Background checks

Employers may perform background checks, but always preserving the dignity of the candidates and their sensitive data.

Criminal records cannot be obtained by employers themselves, neither directly nor through third party providers. Only may the prospective employee request from the authorities a certificate of his / her criminal records and submit it to the company.

Pre-employment medical examinations to assess the applicants´ fitness to work and their preexistent health conditions, may be required with certain limitations.

All checks must be conducted diligently and in a non-discriminatory manner.

Prospective employers may not require from the candidates any personal data revealing racial or ethnic origin, political or trade union opinions, religious, philosophical or moral beliefs, or information concerning the health or sex life of the applicants. In this line also, Job offers may not contain restrictions on grounds such as race, ethnicity, religion, nationality, ideology, political or trade union opinion, sex, gender, economic position, social status, physical characteristics, disability, residence, family responsibilities or criminal record of those who have served their full sentence. 

The hiring decision should not be grounded on any data collected from the background checks that might be deemed to be discriminatory in any sense.

(iii) Execution of the employment agreement

a) Employment period

As a general principle, the employment contract is executed for an indefinite term, with a three-month trial period. During the said probationary period, the employer may terminate the agreement at will, with no other obligation than serving the employee with a 15-day prior notice (or paid a compensation tantamount to the salaries for those 15 days). No severance payment is due.

Exceptions to the permanent basis rule are fixed-term, temporary, and seasonal contracts of employment.

Please, ask for the full copy of the report here.

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.

[1] On branches in Argentina, please, read our post here: https://cspabogados.com.ar/en/branches-in-argentina/

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