Double Severance Payments for Termination without Cause

By means of Decree 34/2019 (the “Decree”), the Argentine Executive declared a public emergency with regard to employment for the term of one hundred and eighty (180) days as of December 13, 2019, the date of its publication in the Official Gazette.

According to the explanations provided in the Decree’s recitals, the Argentine Executive aims to prevent the crisis in unemployment from becoming any worse. Meanwhile a working group will be set up to reach basic agreements to contribute to stopping Argentina’s economic and social downturn.

Within that scope, the Decree establishes that employees dismissed without cause have the right to double the legal severance payment. With the aim of generating new employment opportunities, those employees hired after the Decree comes into force are not affected by the Decree.

In relation to the duplicated items, the Decree refers to all severance payments due as a consequence of the termination of the employment contract without cause.