Issue: November 2020

ARGENTINA - Extension of Prohibition of Dismissals and Furloughs

By: Nicolás Grandi, Allende & Brea, Buenos Aires

The Decree 891/2020 extended the prohibition of dismissals: (i) without justified cause, or (ii) due to lack or reduction of work and force majeure, for a period of 60 days as from its original deadline (i.e. the prohibition is now extended until January 30, 2021).

The Decree also extended the prohibition of unilateral furloughs on grounds of force majeure, or lack or reduction of work, also for a period of 60 days as from its original deadline (i.e. the prohibition is now extended until January 30, 2021).

Exceptions to this prohibition are the furloughs in the terms of Section 223 bis of the Labor Contract Law –  this is, furloughs agreed with each employee or the union, approved by the labor authority, for those employees that shall not perform any tasks, due to lack or reduction of work (not attributable to employer) or force majeure (duly evidenced).

The Decree provides that any dismissals and furloughs in breach of the provisions of this Decree shall have no effect, and the labor relationships and its terms and conditions shall remain in force as before.

The Decree will not apply to employees hired after its effective date.