Introduction

The growing prevalence of remote work for foreign companies presents novel labor law challenges. A recent labor court ruling addressed precisely this issue: an employee provided services from Argentina to a foreign company with no local establishment. Subsequently, that foreign company was acquired by an Argentine corporation.

Key Legal Issues

For purposes of the case, the court considered two questions:

1. Whether remote services performed for a foreign company constitute an employment relationship under Labor Contract Law No. 20,744;
2. Whether the acquisition of the foreign company constituted a transfer of establishment, resulting in succession to labor obligations (Article 225 LCL).

The Ruling

The Joint Management Court of Conciliation and Labor No. 1, Judge No. 12, Province of Córdoba, in Barturen, Victoria v. Bitsight Technologies Argentina S.A. – Summary Declaratory Proceeding – Others (elDial.com – AAE8C7, published May 26, 2025), held that:

1. The plaintiff was employed by the foreign corporation, notwithstanding that her services were rendered remotely from her home in Argentina;
2. Because the locally incorporated company continued the business of the foreign corporation, a transfer of establishment had occurred. The court therefore imposed joint liability on the local company as successor to the labor obligations.

Conclusion

This ruling is highly significant for cross-border employment issues, which are increasingly common in the context of telecommuting from Argentina.

Here, an Argentine court assumed jurisdiction and applied domestic labor law to the claim of a worker providing services from Argentina to a foreign entity. The decision illustrates the practical application of Article 3 of the LCL, which provides that its rules govern the validity, rights, and obligations of the parties to a labor contract insofar as it is performed within Argentine territory.

The case also serves as a cautionary precedent for multinational companies engaging individuals based in Argentina. Compliance departments—internal and external alike—should carefully evaluate the risks involved. Where the relationship bears the hallmarks of employment under Argentine law, it may be deemed an unregistered employment contract, with all attendant labor and social security consequences.

Additionally, foreign companies hiring Argentine workers may face tax exposure if deemed to have established a permanent establishment in the country.

Finally, both labor and tax contingencies acquire particular importance in mergers and acquisitions. They should be factored into purchase price adjustments and the negotiation of indemnities and guarantees against potential liabilities.

Mario E. Castro Sammartino

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