New resolutions in Argentine Labor Law protecting employees from COVID-19
Updated: May 31
Given the extraordinary situation that exists, not only in Argentina but also in the whole world, the national executive government issued a Decree of Necessity and Urgency for a period of 60 days, where dismiss and furlough are prohibited.
Everything arises as a result of DNU N° 297/2020 in which "social, preventive and obligatory isolation" was dictated. This measurement achieved many expected consequences, creating a devastating panorama and uncertain effects in all areas, not only in the workplace.
The government saw the need to adopt measures to guarantee the employment position of Argentine workers and their corresponding salary in order to cope with the current times. The government tended to create transitional, proportionate and reasonable measures in order to guarantee their rights, sheltering in the article number 14 bis of the Argentine National Constitution where protection of work must be guaranteed and protected, in all its forms.
For this, the Decree of Need and Urgency No. 329/2020 was published in the Official Gazette on March 31, 2020. In its second article, it establishes the prohibition of dismissals without just cause and furloughs due to lack or reduction of work and/or force majeure for a 60-day term. Then, in its third article, during the same term furloughs due to lack or reduction of work and/or force majeure, are also prohibited. However, furloughs decided according to Section 223 bis of the Labor Contract Law are exempted (agreed individually or collectively or approved by the labor authority, and when under grounds of lack or decrease of work, not attributable to the employer, or force majeure probably verified, the worker does not carry out the work authorization at his load).
The decree establishes that deserts or suspensions that do not suit those affected will remain without effect, violating the provisions of the decree, making all existing employment relationships in force continue and with the same conditions. The Decree has a term of 60 (sixty) days, so having it entered into force on March 31, it remains in force and fully effective until May 31, 2020