Amendments to Labor Contract Law

On May 5, 2010, Law No. 26,590 was published in the Official Gazette amending Section 124 of the Labor Contract Law prohibiting the payment of commissions and expenses to banks in operations and money withdrawals by means of the salary account.  

Notice that this kind of account was created in July 2001, obliging employers to pay the salary of their dependants into bank accounts personalized for each employee. The regulation that provided it was Resolution No. 360/01 of the Ministry of Labor, Employment and Human Resources Formation. Pursuant to the regulation of the Central Bank of the Argentine Republic it has been established that banks were obliged to grant to said users a minimum of 4 monthly cash withdrawals from their accounts with no charge, only when those withdrawals were made from cash machines from the same banking entity.     

By means of this new regulation, it is settled that the salary account "under no circumstances shall have limited money withdrawals, nor any cost for any employee, regarding its constitution, maintenance or money withdrawals in all the banking system, whatever the withdrawal method might be."