Employment and Social Security

Argentine government establishes conditions to be met prior to dismiss employees

Decree 1043/2018, published today, provides that up to March 31, 2019, employers must follow a procedure before dismissing without justified cause employees hired under an indefinite term employment. The employer must serve notice of that dismissal upon  the Ministry of Production and Labor  no less than 10 business day before the dismissal becomes effective.

The Ministry of Production and Labor may, either on its own initiative or at the request of any of the parties, request the employer and the employee, together with the proper union counseling, to attend at as many hearings as it may deem necessary to discuss the conditions at which the future dismissal will take place. Breach of this obligation may entail the imposition of the penalties that may range between 25% up to 200% of the minimum mandatory wage, that as from December 1, 2018, will be AR$ 11,300, currently equal to U$S 310.

For further information on this topic please contact Nicolás Grandi