Regulation of the Ministry of Labor to the Social, Preventive and Mandatory Isolation

Effective as of March 20, the Ministry of Labor modified the regulation to "social, preventive and mandatory isolation". The new Resolution establishes:

1. Exemption from the duty of physically attending the workplace: Maintains employees’ exemption from the duty of physically attending the workplace for those reached by the "social, preventive and mandatory isolation" and their obligation, when their tasks or other similar tasks can be carried out from the place of isolation, to be agreed on with their employer the conditions in which said work will be carried out, within the context of contractual good faith.

2. Remunerative nature of amounts: The difference made by Resolution 219/2020 between workers who render services and those who do not, in relation to their income, was abrogated retroactively to March 20, 2020. In fact, the Resolution repeals the benefits regarding the exemptions of certain withholdings and contributions (i.e. except for withholdings and contributions to the Argentine health insurance system and to the Argentine Institute of Social Services for Retirees and Pensioners) on the non-remunerative amounts declared by the prior Resolution 219 and received by those employees reached by the isolation could not carry out their tasks from isolation. This new rule could affect the settlements already made on the salaries corresponding to the month of March.

3. Essential personnel: Maintains the qualification as "essential personnel" for employees who provide services in the activities excepted from isolation, in the terms of Resolution 207 of the Ministry of Labor.

4. Non-dependent employees: Maintains among the concept of "employees", people who provide services continuously in a non-dependent capacity (service providers, interns, scholarships, etc.).

5. Ius variandi: Maintains the employers’ power to reorganize of the working day to guarantee the continuity of the production of the activities declared essential as a reasonable exercise of the powers of the employer. However, it repeals the benefits in relation to the reduction of the rate provided in Section 19 of Law No. 27,541 on the overtime needed for guaranteeing the essential services.

6. Extraordinary and temporary hires: The new Resolution repeats that the need to hire personnel while the "social, preventive and mandatory isolation" lasts must be considered extraordinary and temporary under the terms of Section 99 of the Labor Contract Law (Temporary Employment Contract). However, it repeals the benefits mentioned in prior Resolution 219, which established the reduction of the rate provided in Section 19 of Law No. 27,541 (employer contributions) on the salaries.

7. Holidays: States that the prohibition/exemption of assisting to work (apart from the defined exceptions) does not mean having vacations, public holidays or rest days and, during the isolation, no legal or union extra payments or accessories established for "holidays" ("asueto" in Spanish) will apply unless such prohibition coincides with a public holiday. This standard would ratify the contingencies derived from granting vacations to employees during the period of isolation.

8. Certification to authorize movement: According to the new wording of the Resolution, the certification to authorize the movement of essential employees during isolation will no longer be the employer’s responsibility. Each employee must process the relevant certificate from April 6, 2020. Until then, the qualifying certificates provided for each jurisdiction or activity in particular will be valid.

The Resolution is in force in the Argentine Republic since the enforceability of the prior and repealed Resolution 219 (i.e. from March 20, 2020).