Through the Resolution of the Ministry of Labor of the Province of Buenos Aires, sanctions were established in the case of dismissals produced during the validity of the prohibition of dismissal established in the framework of the COVID-19 pandemic.
On May 19, 2020, Resolution No. 174/2020 of the Ministry of Labor was published in the Official Gazette of the Province of Buenos Aires, establishing economic penalties for those employers who carry out dismissals during the validity of the Executive Decree (“DNU”) No. 329/2020 and its amending decrees.
It is important to clarify that dismissals without just cause and suspensions for reasons of force majeure or lack or reduction of work are prohibited (according to DNU No. 329/2020 of the Argentine Executive, extended by DNU No. 487/2020).
Resolution No. 174/2020 qualifies as a “serious” offense, in the terms provided by the Federal Labor Pact, the fact of executing dismissals in violation of the prohibition to dismiss.
The Federal Labor Pact quantifies “serious” penalties as fines of between 30% and 200% of the monthly value of the Minimum Wage (“SMVM”), in force at the time the violation is verified by each affected employee.
As of today, the SMVM amounts to ARS 16,875, so the applicable penalty, in the orbit of the Province of Buenos Aires, in the case of dismissals in contravention of the provisions of Decree 329/2020 (and its extensions) would be of ARS 5,062.50 to ARS 33,750, for each affected employee.
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.