RECRUITING TOP TALENT IN ARGENTINA

Finding and then recruiting top talent in an overseas territory that is maybe thousands of miles away is a significant task for companies setting their sights on Global Expansion – and it is a venture that faces many obstacles. Recruiting in Argentina is no different.

Argentina’s attraction as a destination for International Expansion is growing. The country is the third largest economy in Latin America behind Brazil and Mexico, and the 31st in the world. It is assessed by leading international investment research organisations as an emerging global player. Argentina is a fascinating destination for incoming companies, whether they bring in their staff or recruit in-country. Argentina’s inverted triangle shape stretches 2,360 miles from its sub-tropical north along the Atlantic coastline to the sub-Antarctic region of Tierra del Fuego at its southern tip.

Argentina’s eighth-largest landmass in the world includes the most extended above-water mountain range, the Andes, with the Patagonia Desert lying in its shadow. Argentina is a land of contrasts, from its cosmopolitan capital, Buenos Aries, to the gaucho cowboys who still ride the Pampas plains. Recruiting staff in this extraordinary land is a challenge. Where to begin? Bradford Jacobs’ benchmark platforms as a Professional Employer Organisation (PEO) have worldwide reach and include a total understanding of the complexities of Argentina’s employment market. You can trust Bradford Jacobs to put your company’s brightest talent in place.

Recruiting in Argentina

Foreign employers recruiting in Argentina will become used to many speculative applications and CVs from job seekers. This reflects a surplus of well-educated and skilled young people looking for work from a labour pool affected by relatively high unemployment. The recruitment process is a mix of traditional newspaper advertising and a growing influence from job boards and sites such as LinkedIn plus; of course, those CVs appear in the manager’s inbox.

Recruitment is the first stage of making your company operational and competitive in Argentina, while complications surround moving staff into the country and obtaining work visas and permits. Knowing where to locate the finest candidates for your company’s expansion plans is vital to avoid these issues.

Once recruited, companies must consider the implications of handling payroll for their staff and deal with the Federal Administration of Public Revenues, the Administración Federal de Ingresos Públicos (AFIP) and the National Administration of Social Security (Nacional de la Seguridad Social, ANSES). Employers must deal with the following:

  • Registering employees with the AFIP and obtaining the employer’s 11-digit Unique Tax Identification Code (CUIT).
  • Obtaining the Unified Labor Identification Code (CUIL) for social security transactions of the company and employees with ANSES.
  • Obtaining their DNI number (Documento Nacional de Identidad) is required when opening bank accounts and registering for the internet and other services.
  • Logging the employment relationship in the Special Payroll Book, which the Ministry of Labor may examiner.
  • Although there is no mandatory requirement for contracts to be either in writing or oral, unless specified under a specific law or collective agreement, it is safest to conclude written contracts with employees.

Employees' Legal Checks in Argentina

Medical history: If an employee is not required to undergo a medical check, they will be deemed fit and healthy for the role. Therefore any subsequent conditions may be considered work-related. The employer should consequently require pre-employment medical examinations to ascertain the candidate’s health at the start of the relationship.

Criminal records are necessary for foreign workers to obtain a work visa. In other cases, they are typical for senior managerial roles, but the individual must request the information from the Criminal Records Registry and provide it to the employer.

Education and References:  Allowed with the consent of the applicant.

Basic Facts when Recruiting in Argentina

The primary legislation governing the employer-employee relationship in Argentina is the Employment Contracts Law, which establishes the contractual requirements when hiring staff.

  • There is no legal requirement for a written contract for full-time, permanent employees, as legislation covers every aspect of the employment relationship.
  • There must be written contracts for fixed-term contracts
  • Strict requirements apply to entering a fixed-term contract, which cannot exceed five years
  • Temporary contracts are permitted when necessitated by exceptional production demands
  • The maximum permissible trial period is three months, after which the employee becomes permanent
  • Employers must give two months’ notice of dismissal to employees who have worked more than five years, one month for being employed for less than five years, and 15 days for those on probation
  • Employers must take out accident and life insurance policies for the employee
  • Register employees with the Federal Administration of Public Revenues, the Administración Federal de Ingresos Públicos within 48 hours of starting work
  • Register the employment relationship in the Special Payroll Book, which is subject to inspection by the Ministry of Labor

After hiring and onboarding, employers must comply with all the provisions laid down by the Employment Contracts Law. Minimum standards include wages, sick leave, working hours, maternity allowances, paid vacations, termination and severance, notice periods and social insurance payments. Other rules regulate workplace discrimination. Examples include:

  • Employees are entitled to up to three months of paid sick leave if they have five years of seniority, increasing to six months after working more than five years. The benefit is 100% of the salary paid by the employer.
  • The Employment Contracts Law restricts working hours to eight per day and 48 a week. Exceptions include managers, executives and directors, and those engaged in ‘teamwork’, as long as their average over three weeks does not exceed the limits.
  • Employees are free to agree to overtime. They receive 50% above their regular rate for working on business days; 100% for working after 1 pm on a Saturday or any time on a Sunday. Overtime hours cannot exceed three a day, 30 a month or 200 in a calendar year.
  • Pregnant employees receive 45 days maternity leave before the due date and 45 days post-natal, with a mandatory minimum of 30 days before birth. If the pre-natal allowance is not fully used due to premature delivery, the balance can be added to the post-natal allowance. Employees receive 100% of their salary as a benefit, paid by the National Administration of Social Security (Nacional de la Seguridad Social, ANSES)

LOOKING TO EXPAND INTO ARGENTINA?

For more information, download our free guide or get in touch with our consultants here