Corporate Email as Proof of Employment Relationship

On July 10, 2017, Room VII of the Argentine Labor Court of Appeals, in the García Díaz Decoud, Marcelo Eduardo v. K.J.A. and other about dismissal case, confirmed the judgement of first instance, confirming the existence of an unregistered employment relationship alleged by the plaintiff.

Tribunal VII held that the typical characteristics of a labor contract (technical, economical and legal subordination) were proved in this case, by considering the following:

• Defendant acknowledged the provision of services and the payment of an amount of money in exchange for them;

• Witness statements according to which the plaintiff had an office in the premises of the defendant; and

• Most importantly, the plaintiff had a corporate email provided by the defendant.

The judgment also confirms the joint liability of the President of the Company pursuant to the application of Sections 59 and 274 of the General Company Act.

It should be borne in mind that, although the rendering of services by independent contractors is a valid modality, under certain circumstances it may give rise to labor, administrative and social security contingencies.

Although the ruling by Room VII is part of existing case law criteria, it is a timely reminder to analyze contracting circumstances and preventive measures or recommendations that may be applied to minimize potential contingencies on a case-by-case basis. These include the review of internal criterion for the provision of corporate email, provision of a physical working place, correlative invoicing and benefits that could be assimilated to an employee.