Labor Insertion Program

ARTICLE
Labor Insertion Program

On May 3, 2017, the Labor Insertion Program called "Plan Empalme”, was published in the Official Gazette. Private companies adhering to the program may include the State´s economic support as part of their employees’ monthly net salary.

May 31, 2017
Labor Insertion Program

On May 3, Decree No. 304/2017 was published in the Official Gazette, launching a Labor Insertion Program called "Plan Empalme", ​​which was announced by the President on May 1.

The program promotes the transformation of social programs, which currently operate under the orbit of the Labor and Social Development ministries, into genuine work.

In its recitals, the decree states that "the extension until 31 December 2019 of the social emergency under the terms of Law No. 27.200 extended the effects of various regulations aimed at allowing the Federal Government to intervene and reverse the negative effects which the successive economic and social crisis have caused on the employment situation, poverty and income of our country's families."

It also includes that "In order to promote and make labor insertion possible, it is necessary to implement measures of articulation, coordination and continuity between the state economic aid received by participants in national employment and social development programs and the economic stimulus offered to the employers by the Labor Ministry for the hiring of workers affected by employment problems".

Accordingly, in Section 1, the decree establishes that "workers affected by employment problems included in national programs implemented by the Labor and Social Development Ministries, who gain employment under an employment relationship in the private sector, may receive or continue to receive monthly financial assistance from the Labor Ministry under the terms of this decree".

“The monthly financial assistance to be paid to participants in national employment and social development programs during the new employment relationship will be a subsidy to employment and may be accounted for by employers as part of their monthly net labor remuneration," determines Section 2 of the Decree.

The program aims to ensure that the beneficiaries of the different programs, such as "Ellas Hacen" and "Argentina Trabaja" - which depend on the Social Development portfolio - and "Construir Empleo" – from Labor Ministry - continue to receive state aid for a maximum of two (2) years, with the possibility of adding that amount to the salary they receive for becoming workers in a working relationship in the private sector, with all the benefits that this implies.

Also included in the scope of the new program are those currently in the " Jóvenes con más y mejor trabajo", "Promover", "Intercosecha", " Trabajo autogestionado ", graduates of vocational training courses dictated by the labor portfolio as well as those who receive training and employment insurance under the unemployment benefit program.

The decree also specifies that those who are incorporated into the program may receive the employment subsidy for a period of 24 months, "only in the cases where the employment relationship continues". To access the plan, employers and workers must join the Labor Insertion Program of the Labor Ministry.

According to official statistics, today around 400.000 people receive one of the national programs that depend on the portfolios of Labor and Social Development.