PERSONNEL EMPLOYMENT

Employees working in the Republic of Argentina shall be subject to the Argentine labor and social security laws.

Employment of personnel may be made on a temporary or permanent basis.

The employment relationship may be terminated by making severance payments.

Personnel employment shall be subject to the laws in force and the collective bargaining agreement corresponding to the company’s activity. Their application is mandatory. There are minimum standards of working conditions that must be observed. Such standards include salaries, work day and personnel benefits.

+ Work day
The work day has a daily limit of 8 hours and a weekly limit of 48 hours. In the event that the operating needs of a plant may require a different work day, it may be possible to pay overtime for the excess of the work day or to implement team-work in rotating shifts.

+ Labor accidents
In Argentina there is an integrated system of work risks coverage, established by Work Risk Law (Ley de Riesgo de Trabajo). This system obligates employers to take out a Work Risk Insurance Company (Aseguradora de Riesgo de Trabajo). The Work Risk Insurance Companies have the double function of a preventive work to avoid the occurrence of work accidents and occupational diseases, and to indemnify and give medical and pharmaceutical treatment to those workers suffering any kind of labor accident.

COSTS

The social security costs (retirement and health care system) are payable both by the employer as well as by the employee: 23% to 33% (depending on the activity) payable by the employer, 13% payable by the employee. Percentages are calculated on gross remuneration.

There are additional costs provided for by the collective bargaining agreement.

+ Directors
Members of the board of directors (or any other management body) of Argentine companies have an option not to pay contributions as employees of the company (with the relevant withholdings) and to pay taxes under the system of “independent workers” (trabajadores autónomos). This system allows that the total cost (both of employee’s contributions and of employer’s contributions) may amount to a fixed sum conditioned to the number of company’s employees, which would be an amount lower than U$S 200 per month (approximately, if the company has more than 10 employees. Whichever option is taken, the director or manager shall continue to be registered as an employee of the company.

CONTRACTORS

The company shall be jointly and severally liable for labor and social security obligations with respect to its contractors’ personnel when they perform tasks related to the main purpose of the company. Therefore, it is important to make ongoing controls of the compliance of these obligations to avoid contingencies.

MIGRATIONS PROCEEDINGS

In order to develop remunerated tasks in Argentina, an entrance permit must be obtained which permit is delivered for a one-year period, renewable for three periods, until a definitive residency is obtained after the fourth year. The proceedings to obtain the Argentine Visa are simple. The type of Visa must be chosen taking into account the duties to be performed by the person.

The most common modalities are the following:

(i) under a labor agreement in an Argentine company, or
(ii) as legal representative of a foreign company.