Argentina: Extension of the prohibition of terminations and suspensions

Bizar Male

In brief

The executive has extended the prohibition to dismiss without just cause, as well as to perform terminations or suspensions for lack or reduction of work, or for force majeure, until 31 May 2021.


In depth

Within the framework of the economic emergency in occupational matters, currently in force at least until 31 December 2021, the executive has enacted Emergency Decree (DNU) No. 266/2021, by which it has extended the prohibition to dismiss without just cause, as well as to perform terminations or suspensions for lack or reduction of work, or for force majeure, until 31 May 2021.

Likewise, as a new measure, the referred DNU has exempted all employees encompassed in the construction industry regime (ruled by Law No. 22,250) from the referred prohibitions. Until the present day, the only exception that had been promoted by the executive was suspensions performed under the terms of Section 223 enc. of the Employment Contract Law. Section 223 enc. regulates the payment of a non-remunerative allowance, agreed either individually or collectively, and only with the proper authorization granted by the Ministry of Labor.

Finally, we would like to highlight that payment of double severance in case of terminations without cause will continue in force until 31 December 2021, and that since 22 January 2021 such amount has a maximum cap of ARS 500,000.

Spanish version

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