Through Resolution No. 444/2020, the Ministry of Labor, Employment and Social Security established that the prohibition of dismissals must not be an obstacle so that, if they occur, the dismissed employees may access unemployment benefits.
On May 26, 2020, Resolution No. 444/2020 of the Ministry of Labor, Employment and Social Security (the “Resolution”) was published in the Official Gazette of Argentina, authorizing the National Administration of Social Security and the National Registry of Rural Workers and Employers (RENATRE) to establish all the necessary proceedings for the access, option of payment method and suspension of unemployment benefits, in a virtual manner.
The Resolution establishes that, in the event of dismissals occurred during the validity of the prohibition imposed by Decree No. 329/2020 and its extension (in principle, until next July 28, 2020), the proceedings for unemployment benefits will be processed and granted without prejudice to the civil, administrative or any other kind of liabilities that may be attributable to the employer, against whom the reinstatement, compensation and penalizing actions will proceed.
In this regard, it should be mentioned that the Federal Labor Pact is applicable to actions or omissions in violation of labor, health, hygiene and safety at work laws and regulations, as well as the normative clauses of collective bargaining agreements. Said law quantifies “serious” penalties for violation of laws, with fines ranging between 30% and 200% of the monthly value of the Minimum Wage (“SMVM”) in force at the time the violation is verified, per each affected employee.
As of today, the SMVM amounts to ARS 16,875, so the applicable penalty in the case of dismissals in contravention of the provisions of Decree 329/2020 (and its extensions) would be of ARS 5,062.50 to ARS 33,750, per each affected employee.
This insight is a brief comment on legal news in Argentina; it does not purport to be an exhaustive analysis or to provide legal advice.