Union Agreements

Extension of the agreement between the Industrial Union and the General Labor Confederation

Resolution 475/2020 of the Argentine Ministry of Labor, Employment and Social Security was published in the Official Gazette, which establishes the 60-day extension of the Resolution 397 that had approved the agreement signed between the Argentine Industrial Union (UIA) and the General Labor Confederation (CGT), referring to approval of agreements for suspensions, which are agreed within the context of section 223 bis of the Labor Contract Law.

Also, through the previous Resolution 397, the MTEySS established the procedure applicable to the submission of requests for suspensions made to said ministry, differentiating whether they are made jointly with the union or unilaterally and whether or not they are in full compliance with the agreement between the UIA and CGT.

The agreement concluded between UIA and CGT established the following requirements for personnel suspensions to obtain automatic approval by the Argentine Ministry of Labor, Employment and Social Security:

I. Amount: The amount that employers must pay as a non-remunerative benefit cannot be less than 75% of the net salary that would have corresponded to the worker if he or she had worked. The contributions provided for in Laws 23,660 and 23,661 and the payment of union dues must be paid on that amount.

II. Forms: Suspensions can be simultaneous, alternate, rotating, total or partial, according to productive realities.

III. Term: the period of validity of the suspensions was of 60 days from 1 April 2020 (extended for 60 more days).

IV. Inalterability: Those who implement the scheme of suspensions under the agreement must maintain their staff without alterations for a term equal to the validity of the norm.

V. Excluded subjects: Workers who, within the framework of good faith, have agreed to work from the place of isolation cannot be suspended. This also applies to workers exempted from the duty of attending the workplace because they belong to a risk group or because of their age.