Labor Law in Argentina: New regulations
Updated: May 31
On December 13 of the year 2019, the Decree of Necessity and Urgency N° 34/2019 was signed by President Alberto Fernandez. The Decree establishes a double compensation for the term of 180 days.
What this Decree proposes is that in the event of the unfair dismissal of the worker, the right to receive a double compensation is obligatory.
In its 4th article, it establishes the moment of applicability and what situations remain extensive. The double compensation will not be applicable to contracts entered into forcer after this Decree. In other words, is applicable to all previous contracts entered into before December 13. This is with the objective of promoting new sources of work and not turning this Decree into a violation of the purposes it seeks to pursue.
Although the Decree has an extension of 180 days, ending on June 10 of the year 2020, many questions had been made about a possible extension. Finally, it was established that the extention was not viable. Anyways, other doubts were made whether the Decree was applicable or not in the Public sector. The new Decree 156/2020 established that the articles of the Decree N° 34/2019 are in no way applicable to the organizations and entities individualized in the article 8 of the Law N° 24.156, including the Centralized and Decentralized National Administration, the different business forms and companies that the National State has full participation, including non-State Public Entities in which the State has a decisional control.