NATIONAL LABOR REGULARIZATION PLAN (PNRT)

1. NATIONAL LABOR REGULARIZATION PLAN (PNRT) Ministry of Labor, Employment and Social Security Argentine Republic

2. UNDERSECRETARIAT OF LABOR INSPECTION AND SOCIAL SECURITY NATIONAL DIRECTORATE OF INSPECTION DISTRIBUTION OF POWERS IN THE AREA OF LABOR INSPECTION AND SOCIAL SECURITY National Labor Regularization Plan (PNRT)

3. UNDERSECRETARIAT OF LABOR INSPECTION AND SOCIAL SECURITY NATIONALDIRECTORATE OF INSPECTION DISTRIBUTION OF POWERS IN THE AREA OFLABOR INSPECTION AND SOCIAL SECURITY National Labor Regularization Plan (PNRT)

4. UNDERSECRETARIAT OF LABOR INSPECTION AND SOCIAL SECURITY NATIONAL DIRECTORATE OF INSPECTION DISTRIBUTION OF POWERS IN THE AREA OFLABOR INSPECTION AND SOCIAL SECURITY National Labor Regularization Plan (PNRT)

5. National Labor Regularization Plan (PNRT) UNDERSECRETARIAT OF LABOR INSPECTION AND SOCIAL SECURITY NATIONALDIRECTORATE OF INSPECTION PURPOSE OF THE PLAN The National Labor Regularization Plan (PNRT) has been underway nationwide since 2003. Its objectives are: • To regularize the status of Unregistered workers • To promote decent work as prescribed by the ILO • To eradicate evasion of taxes and contributions • To sustain the Social Security System • To raise public awareness about the ills of Unregistered Labor National Labor Regularization Plan (PNRT)

6. UNDERSECRETARIAT OF LABOR INSPECTION AND SOCIAL SECURITY NATIONALDIRECTORATE OF INSPECTION National Labor Regularization Plan (PNRT) TOTAL INSPECTIONS, 2003-2009 639.222Establishments. 2.016.945 Workers. (*)Data current as of August 28, 2008 National Labor Regularization Plan (PNRT)

7. UNDERSECRETARIAT OF LABOR INSPECTION AND SOCIAL SECURITY NATIONAL DIRECTORATE OF INSPECTION National Labor Regularization Plan (PNRT) ORGANIZATION CHART Minister of Labor, Employment and Social Security Secretariat of Labor Undersecretariat of Labor Inspection and Social Security Regional Delegations National Directorate of Inspection Offices of the representatives of the Secretariat of Labor in different jurisdictions in the country. They carry out the Plan within their jurisdictions according to guidelines imparted by the National Directorate of Inspection. Federal Directorate of Inspection (DFI) Directorate of Inspection Decisions (DRF) Directorate of Operational Programming (DPO) Directorate of Follow-Up and Control (DSyC) In charge of operational implementation of the Plan (inspection and investigation stages) within the jurisdiction of the City of Buenos Aires and in activities under federal jurisdiction. Adopts rulings on all proceedings initiated as a result of inspections that disclosed violations, as well as on administrative appeals. Administrative tribunal. Involved in pre-inspection intelligence gathering stages. Territorial planning and fiscal intelligence. Performs controls on all inspection processes, interacting with the different areas concerned, in order to improve and optimize Plan performance. National Labor Regularization Plan (PNRT)

8. UNDERSECRETARIAT OF LABOR INSPECTION AND SOCIAL SECURITY NATIONAL DIRECTORATE OF INSPECTION National Labor Regularization Plan (PNRT) STAGES OF AN INSPECTION Inspection Stage Investigation Stage Decision Stage DIF-DR DRF DPO-DIF-DR Administrative appeal Judicial appeal Inspection – Worker Survey Verification of alleged violations Hearings to answer charges Decision Payment or initation of attachment proceedings by DAJ Planning Referral to AFIP to ascertain existence of unpaid Social Security contribution. Control and Follow-up on all proceedings DSyC National Labor Regularization Plan (PNRT)

9. UNDERSECRETARIAT OF LABOR INSPECTION AND SOCIAL SECURITY NATIONALDIRECTORATE OF INSPECTION National Labor Regularization Plan (PNRT) PLANNING PROCESS FISCAL INTELLIGENCE Planning Financial investigations on activities to be inspected Official statistics (INDEC) Inspection Information Process Results Other Agency Databases History of inspection targets (PNRT) Feedback to planning ensures better targeting National Labor Regularization Plan (PNRT)

10. UNDERSECRETARIAT OF LABOR INSPECTION AND SOCIAL SECURITY NATIONALDIRECTORATE OF INSPECTION PNRT CIRCUIT CONTROL PNRT PROCESSES DESIGN AND IMPLEMENTATION OF CONTROL MECHANISMS FOR: • FIELDWORK THROUGHOUT THE COUNTRY • ALL ADMINISTRATIVE STAGES IN THE PNRT PROCEDURE PURPOSE • TO ANALYZE QUALITY OF WORK AND DESCRIBE THE PLAN GUIDELINES AT EACH ESTABLISHMENT. • TO DETECT POSSIBLE DEVIATIONS, INCONSISTENCIES OR PROBLEMS AND PROPOSE THE CORRECTIONS OR CHANGES DEEMED NECESSARY. National Labor Regularization Plan (PNRT)

11. UNDERSECRETARIAT OF LABOR INSPECTION AND SOCIAL SECURITY NATIONAL DIRECTORATE OF INSPECTION INSPECTION CONTROL RE-INSPECTION • Selection of previously surveyed objectives, covering areas with a high density of establishments on the basis of a variety of management indicators. • Quality control surveys on employers and workers. THE RELEVANT CONTROLS ARE PERFORMED TO VERIFY THE WORK IN THE FIELD OF INSPECTORS AT EACH DELEGATION AS WELL AS THE QUALITY OF THEIR WORK. INDICATORS • % IN ORDER • % UNREGISTERED WORKERS • CONTROLS AT DELEGATIONS • COVERAGE (VOLUME OF INSPECTIONS) OF THE REGION BY THE DELEGATION National Labor Regularization Plan (PNRT)

12. UNDERSECRETARIAT OF LABOR INSPECTION AND SOCIAL SECURITY NATIONALDIRECTORATE OF INSPECTION INSPECTION CONTROL INVESTIGATION STAGE THE NECESSARY CONTROLS ARE PERFORMED AT THE INVESTIGATION STAGE OF THE PROCEEDINGS IN ORDER TO AVOID DELAYS IN THE PROCESS AND UNNECESSARY ADMINISTRATIVE COSTS. • Selection of case records from each stage of the Plan based on management indicators. • Preparation of Procedure Guides. • Training for delegations based on the above Guides. INDICATORS • CONSULTATIONS PREPARED BASED ON THE MANAGEMENT SYSTEM • TIME DIFFERENCES BETWEEN THE VARIOUS STAGES OF THE PROCEDURE. National Labor Regularization Plan (PNRT)

13. UNDERSECRETARIAT OF LABOR INSPECTION AND SOCIAL SECURITY NATIONALDIRECTORATE OF INSPECTION REGISTERED LABOR IS QUALITY, SAFE AND PROTECTED LABOR National Labor Regularization Plan (PNRT)