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Source and scope of regulations - 2018    

  • o Labour Contract Law [LCL], Law No. 20.744 promulgated by Decree 390/1976 of 13 May 1976, as last amended by Laws No. 27.320, 27.321, 27.322, 27.323 and 27.325 of 13 December 2016, (Ley del Contrato de Trabajo - available only in Spanish)
    Date: 13 Dec 2016; view website » (view in NATLEX »)
  • National Employment Law [NEL], Law No. 24.013 of 5 December 1991, Law No. 26.727 of 21 December 2011, Ley Nacional del Empleo - available only in Spanish)
    Date: 27 Dec 2011; view website » (view in NATLEX »)
  • Organization and Procedures of National labour Justice, Act No. 18.345, consolidated version approved by Decree 106/98 of 26 January 1998, last amended by Law No. 25.999 of 16 December 2004 and (Organización y Procedimiento de la Justicia Nacional del Trabajo, available only in Spanish)
    Date: 16 Dec 2004; view website » (view in NATLEX »)
  • Trade Unions Act, Law No. 23551 of 23 March 1988, (Ley de Asociaciones Sindicales – available only in Spanish)
    Date: 22 Apr 1988; view website » (view in NATLEX »)
  • Agricultural Employment Law, Law No. 26.727 of 21 December 2011, (Ley del Trabajo Agrario – available only in Spanish)
    Date: 05 Jan 2012; view website » (view in NATLEX »)
  • Labour Procedure and Mandatory Conciliation Act, Law No. 24.635 of 10 April 1996, complementing Law 18.345. (Procedimiento Laboral. Conciliación obligatoria previa. Modificación de la ley 18.345 – Ley 24.645, available only in Spanish)
    Date: 01 Aug 1997; view website » (view in NATLEX »)
  • Small and Medium Enterprises Law [SMEL], Law No. 24467 of 15 March 1995, as last amended by Law No. 26496 (B.O. 7/5/2009)(Pequeña y Mediana Empresa - Ley 24.467, available only in Spanish)
    Date: 15 Apr 2009; view website » (view in NATLEX »)
Size of enterprises excluded (≤): none
Workers' categories excluded: civil/public servants; agricultural workers; domestic workers

Types of employment contracts - 2018    

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Maximum probationary (trial) period: 3 month(s)

Fixed term contract (FTC):
  • FTC regulated: Yes
  • Valid reasons for FTC use: objective and material reasons
  • Maximum number of successive FTCs: no limitation
  • Maximum cumulative duration of successive FTCs: 5 year(s)

Substantive requirements for dismissals (justified and prohibited grounds) - 2018    

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Obligation to provide reasons to the employee: Yes

Valid grounds (justified dismissal): any fair reasons; economic reasons

Prohibited grounds: marital status; pregnancy; race; sex; religion; political opinion; nationality/national origin; age; trade union membership and activities

Workers enjoying special protection: workers' representatives; pregnant women and/or women on maternity leave; confirmed injured workers; older workers/workers on the verge of retirement; workers performing military/alternative service; workers on temporary leave following an occupational disease or a work injury; workers holding an elected position or discharging a public function

Procedural requirements for individual dismissals - 2018    

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Notification to the worker to be dismissed: written

Notice period:
    • tenure ≥ 6 months
      • 1 month(s).
    • tenure ≥ 9 months
      • 1 month(s).
    • tenure ≥ 2 years
      • 1 month(s).
    • tenure ≥ 4 years
      • 1 month(s).
    • tenure ≥ 5 years
      • 2 month(s).
    • tenure ≥ 10 years
      • 2 month(s).
    • tenure ≥ 20 years
      • 2 month(s).

    Pay in lieu of notice: Yes

    Notification to the public administration: No

    Notification to workers' representatives: No

    Approval by public administration or judicial bodies: No

    Approval by workers' representatives: No

    Notes / Remarks
    The notice period requirements do not apply to dismissals for "just cause".
    The only procedural requirement for dismissal for "just cause" is the submission of written notice of the fact of dismissal with a clear indication of the grounds invoked for the termination of the contract. There is no legally prescribed time limit for the submission of this notice.

    Procedural requirements for collective dismissals for economic reasons (redundancy, retrenchment) - 2018    

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    Definition of collective dismissal (number of employees concerned):
    Art. 98 NEL:
    Dismissal on the grounds of force majeure, economic or technological reasons concerning:
    - more than 15% of workers in undertakings employing less than 400 workers;
    - more than 10% of workers in undertakings employing between 400 and 1000 workers;
    - more than 5% of workers in undertakings employing more than 1000 workers.

    Prior consultations with trade unions (workers' representatives): Yes

    Notification to the public administration: Yes

    Notification to workers' representatives: Yes

    Approval by public administration or judicial bodies: Yes

    Approval by workers' representatives: No

    Priority rules for collective dismissals (social considerations, age, job tenure): Yes

    Employer's obligation to consider alternatives to dismissal (transfers, retraining...): No

    Priority rules for re-employment: No

    Severance pay and redundancy payment - 2018    

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    Redundancy payment:
    • tenure ≥ 6 months: 0.5 month(s)
    • tenure ≥ 9 months: 0.5 month(s)
    • tenure ≥ 1 year: 0.5 month(s)
    • tenure ≥ 2 years: 1 month(s)
    • tenure ≥ 4 years: 2 month(s)
    • tenure ≥ 5 years: 2.5 month(s)
    • tenure ≥ 10 years: 5 month(s)
    • tenure ≥ 20 years: 10 month(s)

    Notes / Remarks
    1) dismissal with cause (reference to valid grounds): no severance pay
    2) dismissal for economic reasons: redundancy payment
    3) dismissal without cause: compensation for unfair dismissal (art. 245 LCL)

    Avenues for redress (penalties, remedies) and litigation procedure for individual complaints - 2018    

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    Compensation for unfair dismissal - free determination by court: No

    Compensation for unfair dismissal - Legal limits (ceiling in months or calculation method):
    An employer who orders a worker's dismissal without good cause must pay the worker compensation equal to: one month's wages for every year of service and every fraction of a year greater than three months, taking as a basis for the calculation the highest monthly remuneration normally and regularly received during the last year or during the period for which the services were performed, whichever is less.

    Reinstatement available: No

    Preliminary mandatory conciliation: Yes

    Competent court(s) / tribunal(s): labour court

    Existing arbitration: Yes

    Source of additional information - 2018    

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    Ministry of Labour - Legislation (only in Spanish) »