News in labor matters

1.    Formalization of the Taxation and Social Security System, Promotion and Protection of Formal Employment – Extension of Term

On July 31, 2009 Decree No 018/2009 (the “Decree”) extending the term established by section 14 of the Law on the Formalization of the Taxation and Social Security System and the Promotion and Protection of Formal Employment - Law No 26,476 – (the “Law”) was published in the Official Gazette on July 31, 2009.

The Law established

(i) a regime for the payment of outstanding tax and Social Security obligations,

(ii) a regime for the regularization of informal employment, and

(iii) a regime for the promotion and protection of formal employment.

Pursuant to the provisions of section 14 of the Law, any informal employment situation should be formalized within a term of 180 calendar days computed as from February 2, 2009.

In order to facilitate access to the benefits generated by the Law and the resulting increase in formal employment, the Decree has extended the term set forth in section 14 of the Law for an additional term of 180 calendar days computed as from August 1, 2009.

It should be noted that said extension applies to all the provisions of Chapter I Title II (related to the formalization of employment) including the Payment Terms Plan and the benefits thereof.

2.    Adjustable Minimum Living Wage

Resolution No 2/2009 of the National Employment, Productivity and Adjustable Minimum Living Wage Council -published in the Official Gazette on August 4, 2009- establishes the following Adjustable Minimum Living Wage – excluding family contributions - for all the workers under the scope of the Employment Contract Law, employed by the National Public Administration and other National entities and agencies:

(i) As from August 1, 2009, AR$ 1,400 per month for full time employees and AR$ 7 per hour for those employees who work on an hourly basis.

(ii) As from October 1, 2009, AR$ 1,440 per month for full time employees and AR$ 7.20 per hour for those employees that work on an hourly basis.

(iii) As from January 1, 2010, AR$ 1,500 per month for full time employees and AR$ 7.50 per hour for those employees who work on an hourly basis.

In the case of part time employees and those working reduced hours, said Adjustable Minimum Living Wage shall be paid pro rata for the hours worked.

3.    Online Register of Employers

On July 15, 2009, Decree No 625/2009 (the “Decree”) passed by the Government of the Autonomous City of Buenos Aires setting forth the creation of an Online Register of Employers was published in the Official Gazette

All employers with legal domicile or head office in the Autonomous City of Buenos Aires are required to provide the information indicated in the mentioned register between January 1 and March 31 of each year. The information corresponding to calendar year 2008 should be entered between August 1 and September 30, 2009. The information shall be provided as a sworn affidavit on the website of the Government of the City of Buenos Aires.

Annex I to the Decree describes the information to be provided by the employers. Full details of their employees are required, including personal information about addictions. Later, the Ministry of Economic Development of the City of Buenos Aires issued a release informing its decision not to require private information about the employees such as addictions (smoking, alcoholism and drug abuse).

In the event of failure to enter the required information, the nonperforming employer shall be subject to the applicable penalties.