In Argentina, a validemployment contract must be written and signed by both parties. The contract should include essential details such as the employee’s job title, salary, working hours, start date, and probation period (if applicable). Specific clauses may be required depending on the nature of the job, including confidentiality agreements, non-compete clauses, and terms regarding the use of company equipment.
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Globaine takes care of all compliance matters, including payroll, taxes, and legal obligations, while providing seamless hiring processes. Our platform ensures that every aspect of employee management in Argentina is handled efficiently and in full compliance with local regulations.
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in Argentina
A written employment contract is mandatory from the start of employment in Argentina. While verbal agreements may hold in some informal sectors, a written contract provides clear protection for both employers and employees, outlining their rights and obligations clearly.
In Argentina, salary should be clearly specified in the employment contract, indicating the monthly gross salary, payment frequency (typically monthly), and whether it includes benefits such as commissions or bonuses. Salary should be quoted in Argentine Pesos (ARS).
Special clauses in Argentine employment contracts may include:
Non-compete clauses: Restricting employees from joining competitors post-employment.
Confidentiality clauses: Ensuring the protection of sensitive company information.
Telecommuting clauses: Outlining terms for remote work, if applicable.
in Argentina
1. What are the key steps in employee onboarding in Argentina?
Onboarding in Argentina includes registering employees with the National Social Security system and ensuring they have a valid tax ID. New hires must provide proof of identification, proof of eligibility to work, and banking information for salary deposits. Employees also need to undergo a health check in certain sectors, particularly for physically demanding roles.
2. When should employees complete pre-hire medical checks in Argentina?
Pre-hire medical checks are required for jobs that involve physical exertion or handling hazardous materials. These checks ensure that employees are fit to perform the job without risking their health or safety.
3.What documents are required for onboarding in Argentina?
The necessary documents for onboarding in Argentina include:
- Proof of identity (National ID or passport).
- Argentine tax ID (CUIT) for taxation purposes.
- Signed employment contract.
- Medical certificate (if required).
in Argentina
In Argentina, the salary structure typically includes a monthly gross salary and may include additional benefits such as meal vouchers, transportation allowances, or bonuses. Salary payments are generally made monthly through direct bank transfer.
For remote employees in Argentina, employers must ensure compliance with labor laws, including ensuring that salaries are paid on time, benefits are provided, and remote workers receive allowances for home office equipment or utilities, if applicable.
The minimum wage in Argentina is set by the government and is reviewed periodically. As of 2024, the minimum monthly wage is approximately ARS 350,000, although this amount may vary based on the employee’s sector and the cost of living adjustments.
In Argentina, the 13th salary, known as the aguinaldo, is mandatory and paid twice a year—once in June and once in December. The 14th salary is not mandatory but may be negotiated as part of company-specific benefits.
in Argentina
1.What are the income tax rates in Argentina?
Argentina uses a progressive income tax system. Tax rates range from 5% to 35% based on income levels. For example, income up to ARS 250,000 is taxed at a 5% rate, and income above ARS 6,000,000 is taxed at a 35% rate.
2. How does the tax system apply to non-residents Argentina?
Non-residents in Argentina are subject to a flat tax rate of 24.5% on income earned within Argentina. Non-residents may also be subject to additional taxes on income from Argentina-related activities.
3. When should tax returns be submitted in Argentina?
Tax returns for employees must be submitted by the end of June each year. Employers are responsible for withholding the appropriate amount of taxes from their employees’ salaries and submitting these payments to the Argentine tax authorities (AFIP).
4. What social security contributions are required in Argentina?
Employers must contribute 27% of an employee’s gross salary towards social security (AFIP contributions), which includes retirement, health, and unemployment insurance. Employees also contribute 17% for social security.
in Argentina
Employees in Argentina are entitled to a minimum of 14 calendar days of paid annual leave after one year of continuous employment. The leave entitlement increases with length of service, and employees with over five years of service are entitled to 21 days of paid leave.
Employees can start using their accrued leave once they have completed one full year of continuous service with the employer. During the first year, leave is accumulated at a rate of 1.17 days per month.
Maternity leave in Argentina is 90 days, with 45 days taken before the birth and 45 days after the birth. Paternity leave is 2 days. Both benefits are partially funded by the government.
Argentina has several public holidays throughout the year, and employees are entitled to time off on these days. If employees work on a public holiday, they are entitled to receive a premium pay rate.
in Argentina
1.What benefits are mandatory in Argentina?
Mandatory benefits in Argentina include:
- Annual paid leave.
- Maternity and paternity leave.
- Public holiday leave.
- Social security contributions (healthcare and pension).
2. How is the home office allowance structured in Argentina?
While there is no official national scheme for home office allowances, many employers offer stipends to cover home office-related expenses such as utilities and office equipment for remote workers.
3. When should meal allowances be provided in Argentina?
Meal allowances are generally provided when employees are required to work overtime or are traveling for work purposes. These allowances are not mandatory but may be included in the company’s benefits policy.
4. What additional benefits are common in Argentina?
Common additional benefits in Argentina include private healthcare, life insurance, meal vouchers, transportation allowances, and performance-based bonuses.
TERMINATIONS
in Argentina
The statutory notice period for termination in Argentina depends on the employee’s length of service. It ranges from 15 days for employees with less than one year of service to 2 months for employees with more than 5 years of service.
An employee can be terminated without notice in cases of gross misconduct, such as theft, violence, or severe breaches of company policies. However, fair procedures must be followed, and the employer must have evidence of the misconduct.
Severance pay in Argentina is regulated by labor laws, with the minimum payment being one month’s salary for each year of service, capped at 12 months. Employees may also receive any unpaid salary and accrued benefits.
Mutual termination occurs when both the employer and employee agree to end the employment relationship. This usually involves a written agreement specifying the terms, including severance payments, the final working date, and any post-termination clauses.
FAQs
1. How does Globaine ensure full compliance with Argentina's labor laws when hiring and managing employees through the EOR solution?
Globaine ensures compliance by following Argentina’s strict labor regulations, including the correct payment of wages, mandatory benefits, and tax contributions. We manage employment contracts, social security, and termination processes according to Argentine labor laws.
2. What specific cost savings can our company expect by using Globaine's EOR solution compared to setting up a local entity in Argentina?
By using Globaine’s EOR solution, companies avoid the costs of setting up and maintaining a local entity in Argentina, such as registration fees, office space, and legal compliance. This solution also eliminates the need for a dedicated HR team.
3. How does Globaine guarantee fast onboarding within 12 hours, and what processes are in place to maintain this speed?
Globaine guarantees quick onboarding by utilizing a streamlined process that includes pre-established agreements, automated systems for document management, and a local expert team ready to onboard employees efficiently.
4. Can Globaine handle complex employment scenarios in Argentina, such as drafting bilingual contracts and managing terminations?
Yes, Globaine can manage complex scenarios like drafting bilingual contracts (Spanish and English) and handling terminations in compliance with Argentina’s labor laws, ensuring all legal requirements are met.
5. What are the key risks of hiring in Argentina without an EOR, and how does Globaine mitigate these risks?
Without an EOR, risks include non-compliance with Argentina’s labor laws, potential fines, and wrongful termination claims. Globaine mitigates these risks by managing compliance, employment contracts, and terminations according to local regulations.