Emergency Labor and Production Assistance Program

1. Employers included

 

The employers included in these benefits are those that comply with one or more of the following requirements:

 

1. economic activities that are critically affected by the geographical areas where they are carried out; and/or

2. those who have a significant number of employees infected with COVID 19 or who must remain in mandatory isolation or with work exemption (e.g. risk group, or in the care of minors); and/or

3. those with significant reduction of their sales after March 20, 2020.

 

Through Decree 347/2020 (O.G 04/05/2020) that modifies Decree 332/2020, employers whose activities are essential and who suffered a negative impact on the development of their activity or service are also included in the benefit.

 

2. Benefits

 

In particular, the employers, provided they meet the requirements mentioned above, will be eligible for the following benefits:

 

1. SOCIAL SECURITY BENEFITS

 

1. Postponement of the deadline to pay employers contributions to the Argentine Integrated Social Security System; or

 

2. Up to 95% of reduction on employers contributions to the Argentine Integrated Social Security System accrued during April 2020.

 

Employers with more than 60 employees must start the Crisis Prevention Procedure in order to enjoy such reduction.

 

2. COMPENSATORY ALLOWANCE FOR COMPANIES WITH UP TO ONE HUNDRED EMPLOYEES INCLUDED IN THE COLLECTIVE BARGAINING REGIME

 

Employers may receive a Compensatory Allowance for the salary paid to the employees. This payment will consist of an amount paid by ANSES (Social Security Authority) of up to 100% of the employee's gross salary, according to the following maximum values:

 

1. In companies with up to 25 employees: the Compensatory Allowance per employee will have a maximum value of one Minimum Wage in force;

2. in companies with up to 60 employees: the Compensatory Allowance per employee will have a maximum value of up to 75% of the Minimum Wage in force; and

3. in companies with 61 and up to 100 employees: the Compensatory Allowance per employee will have a maximum value of up to 50% of the Minimum Wage in force.

 

This Compensatory Allowance will be taken into account for the payment of remunerations. The remaining amount will have to be paid by the employer as remuneration.

In case of suspension of the employment contract, the amount of the allowance will be reduced by 25% and may be considered part of the non-remunerative amount established for cases of suspension (Section 223 bis of the Labor Contract Law).

 

3. REPRO FOR COMPANIES WITH MORE THAN ONE HUNDRED EMPLOYEES INCLUDED IN THE COLLECTIVE BARGAINING REGIME

 

The REPRO Program (“Productive Recovery Program”) will consist of a non-contributory allowance with respect to the Argentine Integrated Social Security System of a minimum of ARS 6,000 and a maximum of ARS 10,000.

 

The Chief of Staff of the Executive Power will be in charge of establishing the objective criteria, activity sectors, and other elements that will allow the determination of the benefits of the decree.

 

The economic results to be taken into account will be those that happened between March 20 and April 30, 2020, inclusive.

 

3. Employers’ obligations

 

Companies must provide and prove to the Argentine Tax Authority (the “AFIP” after its acronym in Spanish) the list of the personnel reached by the benefit and its impact on the activities also reached by it. The Ministry of Labor, Employment and Social Security will consider the information and documentation sent by the company. Moreover, the Ministry may (i) gather additional information to expand and/or verify the information initially provided and request the documentation it considers necessary, and (ii) arrange evaluation visits to the headquarters of the establishment, to ratify and/or rectify conclusions.

 

4. Operability

 

The operation of the Emergency Assistance Program is subject to regulation by the Chief of Staff of the Executive Power, the Tax Authority and, eventually, the Ministry of Labor, Employment and Social Security.

 

In this regard, Decree No. 347/2020 (B.O 05/04/2020) created the “Evaluation and Monitoring Committee of the Emergency Labor and Production Assistance Program”.

 

Among its functions the committee will define the relevant facts that justify the inclusion of the beneficiaries and rule on specific requests that require special treatment.

 

By Administrative Decision 483/2020 (O.G 04/08/2020) of the Chief of the Cabinet of Ministers, the Evaluation and Monitoring Committee of the Emergency Labor and Production Assistance Program recommended the following:

 

1. 1. The AFIP to enable the necessary systemic instruments so that the companies that intend to access the benefits can register.

 

1. 2. The AFIP to evaluate, within the framework of its powers, postponing the payment of employer contributions corresponding to the fiscal period accrued in March 2020 to the included employers.

 

1. 3. The Ministry of Economy and the Ministry of Productive Development to prepare the necessary reports to determine the objective criteria to define the fulfillment of the requirements.