Argentina’s regulatory framework is one of the most protective in Latin America, shaped by a long history of labour activism and strong union representation. For international employers, understanding and adhering to local labour laws is essential—not only to avoid costly legal issues, but to build trust and stability within your workforce.

From mandatory employee benefits to strict termination rules, Argentine law sets clear expectations for employers. According to the OECD, employment protection legislation in Argentina is among the highest in the region, which means non-compliance can lead to significant reputational and financial risks.

This guide outlines the most important employment laws and practices every employer operating in Argentina should understand.

Quick Tips

• All employment contracts must comply with the Labour Contract Law (Ley de Contrato de Trabajo No. 20.744).

• Employment must be registered with the Federal Administration of Public Revenues (AFIP).

• Terminations without cause trigger mandatory severance pay.

• Annual bonuses (Aguinaldo) and paid vacation are legally required.

• Trade unions play a significant role—collective bargaining agreements apply widely.

Employment Contracts and Registration Under Argentine law, all employees must have a written contract that includes key employment terms. Employers are required to register employees with AFIP and contribute to various social security and pension systems. Unregistered or "off-the-books" employment can result in severe penalties.

Probationary periods are allowed for up to three months, during which termination can occur without severance—though notice is still required. After this period, full employment protections apply.

Termination and Severance Requirements Dismissal without cause is legally permitted, but it must be accompanied by severance pay. Severance includes:

• One month’s salary for each year of service

• Pro-rata vacation and bonus pay

• Additional compensation if the dismissal is deemed discriminatory or improper

In the case of resignation or mutual agreement, different rules apply, but documentation must still follow legal protocols. Many disputes arise from poorly handled terminations—employers should always consult local counsel before proceeding.

Working Hours, Leave, and Benefits The standard workweek in Argentina is 48 hours, with a maximum of 8 hours per day. Overtime must be paid at 50% above regular pay, and 100% on weekends or holidays.

Key statutory benefits include:

• Aguinaldo: A 13th-month salary paid in two instalments each year.

• Paid vacation: Employees are entitled to 14 to 35 days annually, depending on length of service.

• Sick leave: Varies by seniority, generally ranging from 3 to 12 months of paid leave.

• Maternity leave: 90 days paid (45 before and 45 after birth), funded by social security.

Union Representation and Collective Bargaining Unions play a strong role in Argentine labour relations. Most industries are covered by collective bargaining agreements (CBAs) that set minimum conditions for pay, working hours, and benefits.

Even if a company is not directly engaged with a union, CBAs often apply by default. Employers must ensure their internal policies align with sector agreements to avoid conflicts or inspections.

A Real Example: Avoiding Misclassification Risks A US-based tech firm expanding into Buenos Aires engaged ThinkGlobal HR after running into classification issues. They had engaged several remote contractors but were treating them like employees—assigning hours, equipment, and supervision.

We helped them transition compliant contracts, register the workers correctly, and build a scalable local employment model. This avoided fines, improved employee satisfaction, and allowed them to scale up with confidence.

Argentina’s labour laws are designed to protect workers—but with the right planning and local partnerships, they can also help employers create secure, compliant, and motivated teams.

What’s next for your global people strategy? Book a free compliance check-in or HR audit with ThinkGlobal HR. We’ll help you navigate Argentine labour laws, assess your employment model, and build systems that support both people and performance.