On March 31, 2020, Decree No. 329/2020 of the Argentine Executive (the "Decree") was published in the Official Gazette, which prohibits dismissals without cause as well as dismissals and furloughs due to lack or reduction of work and/or force majeure, for a 60-day term.
The Decree establishes the following:
1. Prohibition to dismiss
As from 00.00 hours of March 31, 2020 dismissals without cause and dismissals and suspensions due to lack or reduction of work and/or force majeure are prohibited for a 60-day term. Those dismissals that occur during the prohibition have no effect, and the existing labor relationships will remain in force according to their current conditions.
2. Prohibition to suspend: exception
During the same term suspensions due to lack or reduction of work and/or force majeure, are prohibited. Dismissal and suspensions in violation of the prohibition have no effect.
However, suspensions decided according to Section 223 bis of the Labor Contract Law are exempted.
Said Section establishes that a monetary allowance can be agreed (in cases of lack or reduction of work for which the employer is not responsible and/or in cases of force majeure duly credited) individually or collectively –"and approved by the relevant authority"- as a compensation for the suspension of the services rendered by employees. Those allowances must be considered as "non-remunerative allowances" and will only be subject to the contributions established under Laws No. 23,660 and 26,661.
3. Date
The Decree is in force from 00.00hs March 31, 2020.
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.