With an improving economic outlook, Argentina is betting on strong growth for the coming years. If you are thinking of doing business in the country, an attractive option is through an employer of record (EOR) in Argentina.
With a gross domestic product (GDP) in 2019 of $449.7 billion, according to the World Bank, Argentina ranks as the third-largest economy in Latin America. Moreover, Argentina has an abundant wealth of natural resources in both energy and agriculture, which are prime for greater development.
The country’s fertile arable lands and status as a major food producer, its significant reserves of gas and lithium, and its enormous potential in renewable energies, all represent major commercial opportunities for investors. Argentina has also emerged as a hub of tech innovation in the region, as well as having a varied industrial sector.
If you are interested in doing business in the South American nation without having to go through company formation in Argentina, finding a reliable EOR could be your best option.
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What is an EOR in Argentina?
An EOR is an organization that supports companies through the provision of human resources (HR) services. That generally means recruiting, hiring, firing, and paying all taxes and benefits to local employees, as part of a comprehensive EOR service. However, a more limited service can also be provided based on your needs.
Essentially, an EOR will manage time-consuming HR tasks, leaving their clients to focus on other aspects of their businesses.
Benefits of contracting through an EOR in Argentina
Besides saving your company time and manpower, other benefits of hiring an EOR in Argentina include:
Profitability: Hiring staff through an EOR reduces administrative and recruiting expenses and saves you money if you want to hire local staff but do not have operations large enough to warrant company incorporation or branch formation.
Recruitment: A reliable EOR will have an established recruitment team with abundant knowledge of the local market, which will quickly be able to find the most suitable and qualified personnel for your company.
Compliance: With their experience and knowledge of the local market, EORs will ensure as a matter of course that you are in full compliance with all Argentine labor laws and regulations.
Argentinian law allows for the following types of contract:
Contract of indefinite duration: There is no legal requirement to have a written agreement. However, signing a contract will clarify the terms and conditions of the employment relationship.
Fixed-term contracts: It is mandatory to have a written employment contract. The period of service cannot exceed five years.
Part-time or temporary contracts: Requires a written employment contract.
An EOR in Argentina will be able to advise on the best type of contract for the employees you are seeking to hire.
Employee benefits and rights in Argentina
The following are some of the most important employee benefits and rights to understand in Argentina:
Hours of work: An employee can work a maximum of 48 hours in a week, with a maximum of eight hours per day.
Extra hours: With the exception of managers and directors, all employees are entitled to receive overtime pay. Any additional hours of work that exceed the maximum workday are paid as overtime. Employees are entitled to their salary plus an additional 50 percent for overtime hours that they fulfill between Monday to Friday and 100 percent (double time) for overtime hours during the weekend. Overtime cannot by law exceed 30 hours per month or 200 hours per year.
Paid holidays: These vary from 14 to 35 consecutive days based on length of service. Employees who have worked for more than six months are entitled to 14 consecutive days of paid vacation. This figure increases with the number of years worked in the company.
Bonuses: Employees receive two annual bonuses, known as Complementary Annual Salary. These bonuses are equivalent to 50 percent of their highest monthly salary within the six month period prior to the bonus. The first bonus is delivered on June 30 and the second on December 18.
Maternity leave: Employees are entitled to 90 days of maternity leave, made up of 45 days before and 45 days after the birth of their child.
Sick Leave: Employees who have worked up to five years are entitled to full compensation (equal to their salary) for a maximum of three months of sick leave per year. The amount of sick leave granted to employees increases with the number of years of service.
Biz Latin Hub: your reliable EOR in Argentina
At Biz Latin Hub, our multilingual recruitment and employment specialists are on hand to offer you a tailored service to cater to your business needs in Argentina, or elsewhere in Latin America and the Caribbean. With our full suite of legal, accounting, and back-office services, we can be your single point of contact to help you to enter the Argentinian market in the shortest possible time.
Contact us now to discuss your expansion options.
Learn more about our team and expert authors.