Business

Argentina — Business: Hiring Employees

Argentine employment is governed by Ley de Contrato de Trabajo No. 20.744. Indefinite contracts are the legal default; fixed-term contracts require written justification and are capped at 5 years. Since the Ley 27.742 reform (effective July 2024), standard probation extends to 6 months (up to 8-12 months under some CBAs for companies with under 50 employees), with no-notice termination allowed only in the first 30 days. Notice periods and tenure-based severance apply after probation for termination without cause.

Why this matters

The 2024 reform materially lengthened probation (from the older 3-month standard to 6 months) and changed the no-notice termination window to just the first 30 days -- employers relying on older guides will misjudge both the probation length and the point at which notice/severance obligations kick in.

Key facts

  • Indefinite (open-ended) contracts are the default; fixed-term contracts must be justified in writing and cannot exceed 5 years.
  • Standard probation period is 6 months (extendable to 8-12 months under some collective bargaining agreements for employers with fewer than 50 employees) since the July 2024 reform (Ley 27.742).
  • During the first 30 days of probation, employment can be terminated without notice or severance; from day 31 to the end of probation, 15 days' written notice is required.
  • For termination without cause after probation: notice is 1 month for under 5 years of tenure, 2 months for 5+ years; severance is roughly one month's highest normal salary per year of service (or fraction over 3 months).

Steps

  1. Step 1: Draft a compliant written contract — Prepare a written employment contract in Spanish specifying job title, compensation, working conditions, and any applicable collective bargaining agreement (CBA) terms; default to an indefinite contract unless a fixed-term arrangement is specifically justified.
  2. Step 2: Register the employee before their start date — Register the new hire with AFIP/ARCA's payroll systems using the company's CUIT before the employee begins work, as required by Argentine labor law.
  3. Step 3: Track probation obligations — Track the 6-month (or CBA-extended) probation period; note that no-notice termination is only available in the first 30 days, with 15 days' notice required afterward.

Costs

  • Severance (termination without cause, post-probation): ~1 month's highest normal salary per year of service (or fraction exceeding 3 months)
  • Employer social security contributions: 24%-26.4% of gross salary (see the Social Security and Payroll documents)

Timelines

  • Standard probation period: 6 months (up to 8-12 months under some CBAs for employers with under 50 employees)
  • Notice period for termination without cause: 1 month (under 5 years' tenure) or 2 months (5+ years' tenure); 15 days during days 31+ of probation

Required documents

  • Written employment contract (in Spanish)
  • Employee's DNI/passport
  • Employer CUIT and AFIP payroll registration

Common mistakes

  • Assuming the old 3-month probation standard still applies -- it's now 6 months by default since the July 2024 reform.
  • Terminating after day 30 of probation without the required 15 days' written notice.
  • Underbudgeting severance and notice obligations for terminations without cause after probation ends.

← Back to Argentina guides