COVID-19 in the Labor Law Field

Both employers and the Argentine Executive (the "PEN", after its acronym in Spanish) are facing the unexpected challenge of re-evaluating employment relationships and adopting relief measures, given the difficulties brought by the outbreak of COVID-19.

 

I.          Remote work

Through Decree 297/2020, the PEN established "preventive and compulsory social isolation" until March 31, 2020, that was later extended until April 12, 2020, according to Decree No. 325/2020.

 

Consequently, except for those employees who are part of "essential services", the rest will continue under the prohibition of providing services in their usual workplace. This means that they will continue to work remotely.   

 

Regarding this way of provision of services, Resolution No. 21/2020 of the Superintendence Labor Risk Office (the “SRT”, after its acronym in Spanish) established the obligation of the employer to report to the Labor Risk Insurance Company (the "ART", after its acronym in Spanish) the employees who are subject to remote work modality. Although this resolution was issued before the establishing of the isolation, as a preventive measure, it seems reasonable to adopt such criteria and inform the insurance company of the workers who are working remotely.

On the other hand, the aforementioned resolution established that Resolution SRT No. 1552/13 is not applicable. In this regard, the employer is not obliged to supply items (e.g. fire extinguisher, ergonomic chair, etc.) for those employees who begin to provide remote work as a consequence of the isolation.

 

On the contrary, the above exemption would not apply to those employees who have been providing services under the remote work modality prior to the measures adopted because of the spread of the virus. If the employer, in due course, did not deliver the corresponding elements, the breach would not be remedied by Resolution 21/2020.

 

II.         Company action in case of detection of a case of COVID-19

 

It is extremely important to keep in mind that Resolution 202/2020 of the Ministry of Labor, Employment and Social Security (“MTEySS”, after its acronym in Spanish) is in force, which requires  the following:

- Facilitate and respect the general preventive actions and the follow-up of the evolution of sick people or those who have been in contact with them.

- Report to the above-mentioned authority any situation that fits within the assumptions provided in Section 7 of Decree 260/2020.

 

Regardless of the warning to the authorities in the event of detection or knowledge of an employee infected with Covid-19, the company must adopt measures aimed to protect the physical and psychological well-being of the rest of the staff due to the security duty (Section 75 of the Labor Contract Law).

This may occur even after the period of isolation. Therefore, it is advisable to analyze the particular case to evaluate measures to be adopted. Drawing up an internal protocol may be a useful instrument to prepare for any possible problem.

 

III.1      Relief, mitigation, and maintenance of employment measures

The Argentine Executive has adopted several measures to mitigate the effects derived from the spread of the Covid-19 and the isolation decreed, and to maintain levels of employment.

 III.1. Prohibition of dismissals without cause, and dismissals and furloughs based on lack of work and force majeure

Upon Decree PEN No. 329/2020, the following are prohibited for the term of 60 days:

-           Dismissals without cause;

-           Dismissals based on lack of work or force majeure;

-           Furloughs based on lack of work or force majeure.

Such prohibition is not applicable to furloughs established in Section 223 bis of the Labor Contract Law

 

 

III.2. Modifications in the payment of contributions

 

Resolution MTEySS 219/2020 and Decree PEN 300/2020 (applicable to health service), established several reductions and exemptions in terms of withholdings and contributions.

 

However, Resolution 219/2020 was later repealed by Resolution MTEySS No. 279/2020, published in the Official Gazette on April 1, 2020.  

 

III.3. REPRO Program

 

Within the named "relief" or "mitigation" measures, the Argentine State has re-launched the so-called Productive Recovery Program (REPRO)

 

Through the registration request, it is possible to apply for the payment of a fixed monthly remunerative amount of up to a sum equivalent to the minimum wage per worker updated to the date of grant, for a period of up to 12 months, intended to complete the salary of the job category.

 

Small and Medium-Sized Enterprises (“Pymes”, after their acronym in Spanish) have no limit to access such measures; moreover, the Argentine State has arranged to streamline the procedure for obtaining benefits.

 

IIII.4. Low-interest loans

Among the relief measures on offer, different banks have launched lines of credit for assistance in paying wages and financing working capital.

 

These credit lines are particularly focused on assisting Pymes.