{"id":225280,"date":"2025-09-11T09:56:02","date_gmt":"2025-09-11T12:56:02","guid":{"rendered":"https:\/\/cspabogados.com.ar\/?p=225280"},"modified":"2025-09-11T09:56:13","modified_gmt":"2025-09-11T12:56:13","slug":"remote-work-for-foreign-companies","status":"publish","type":"post","link":"https:\/\/cspabogados.com.ar\/en\/remote-work-for-foreign-companies\/","title":{"rendered":"Remote Work for Foreign Companies: Does an Employment Relationship Exist in Argentina?"},"content":{"rendered":"

[et_pb_section fb_built=”1″ fullwidth=”on” _builder_version=”4.27.4″ _module_preset=”default” background_image=”https:\/\/cspabogados.com.ar\/wp-content\/uploads\/2025\/09\/iStock-2199120603.jpg” locked=”off” global_colors_info=”{}”][et_pb_fullwidth_post_title date_format=”j M Y” comments=”off” featured_image=”off” admin_label=”CSP. HEADER POSTS INGLES EMPRESAS” _builder_version=”4.19.0″ _module_preset=”default” title_font=”Source Serif Pro||||||||” title_text_color=”#FFFFFF” title_font_size=”36px” meta_font=”Source Sans Pro||||||||” meta_text_color=”#FFFFFF” background_enable_color=”off” use_background_color_gradient=”on” background_color_gradient_stops=”rgba(18,17,93,0.5) 0%|rgba(18,17,93,0.5) 100%” background_color_gradient_overlays_image=”on” background_enable_image=”off” background_position=”top_center” custom_margin=”|||0px|false|false” custom_padding=”300px||50px||false|false” animation_style=”fade” global_module=”221777″ saved_tabs=”all” global_colors_info=”{}”][\/et_pb_fullwidth_post_title][\/et_pb_section][et_pb_section fb_built=”1″ _builder_version=”4.18.0″ _module_preset=”default” use_background_color_gradient=”on” background_color_gradient_stops=”#f0f3fb 0%|rgba(255,255,255,0) 50%” background_color_gradient_overlays_image=”on” background_enable_image=”off” background_size=”contain” background_position=”top_center” global_colors_info=”{}”][et_pb_row _builder_version=”4.16″ background_color=”#FFFFFF” width=”95%” max_width=”950px” custom_padding=”5%|5%|5%|5%|true|true” locked=”off” global_colors_info=”{}”][et_pb_column type=”4_4″ _builder_version=”4.16″ custom_padding=”|||” global_colors_info=”{}” custom_padding__hover=”|||”][et_pb_text admin_label=”CSP LEGAL BLOG. BODY” _builder_version=”4.27.4″ _module_preset=”default” text_font=”Source Sans Pro||||||||” text_text_color=”#292929″ text_font_size=”20px” text_line_height=”30px” header_font=”Source Serif Pro||||||||” header_text_color=”#292929″ header_2_font=”Source Serif Pro||||||||” header_2_text_color=”#292929″ header_3_font=”Source Serif Pro||||||||” header_3_text_color=”#292929″ width=”795″ global_module=”219558″ saved_tabs=”all” global_colors_info=”{}”]<\/p>\n

Introduction<\/h2>\n

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.<\/p>\n

Key Legal Issues<\/h2>\n

For purposes of the case, the court considered two questions:<\/p>\n

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

    The Ruling<\/h2>\n

    The Joint Management Court of Conciliation and Labor No. 1, Judge No. 12, Province of C\u00f3rdoba, in Barturen, Victoria v. Bitsight Technologies Argentina S.A. \u2013 Summary Declaratory Proceeding \u2013 Others (elDial.com – AAE8C7, published May 26, 2025), held that:<\/p>\n

      \n
    1. The plaintiff was employed by the foreign corporation, notwithstanding that her services were rendered remotely from her home in Argentina;<\/li>\n
    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.<\/li>\n<\/ol>\n

      Conclusion<\/h2>\n

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

      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.<\/p>\n

      The case also serves as a cautionary precedent for multinational companies engaging individuals based in Argentina. Compliance departments\u2014internal and external alike\u2014should 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.<\/p>\n

      Additionally, foreign companies hiring Argentine workers may face tax exposure if deemed to have established a permanent establishment in the country.<\/p>\n

      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.<\/p>\n

      \n

      \n

      \n

      Mario E. Castro Sammartino<\/p>\n

       <\/p>\n

      For additional information on these or any other issues related to doing business in Argentina, please,\u00a0sign up<\/a>\u00a0for our Legal Blog or\u00a0contact us<\/a>\u00a0at any time.\u00a0Our publications exclusively express the\u00a0author\u00b4s opinion and do not purport to be legal counsel on any case. Should\u00a0you need it, you must consult with your trusted lawyer.\u200b<\/p>\n

       <\/p>\n

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