Compliance Guide to Hiring Employees in Argentina in 2023

1. Compliance Guide to Hiring Employees in Argentina in 2023 In our post-pandemic global work culture, the myriad benefits of employment abroad are being realized on a greater scale than ever before. As remote work continues to increase both in terms of popularity and efficacy, employers are enjoying access to international talent pools previously inaccessible. In this article, we’ll tackle all of the most crucial considerations business leaders must make, as well as the regulations to be aware of, in order to successfully hire employees in Argentina. Why hire abroad? And why Argentina?

2. There are many benefits to hiring abroad, most of which you are already likely familiar with. These include: Around-the-clock synchronous work International business expansion opportunities Access to foreign language markets Greater pool of talent to hire from Hiring employees in Argentina specifically grants business leaders a foothold in the largest Spanish-speaking country on earth, whose strong middle class of skilled workers has the highest literacy rates of any country in Latin America. The difference between hiring employees and independent contractors in Argentina It is important to be aware of the distinctions between an ‘employee’ and an ‘independent contractor’ (also known in some countries as freelancers, 1099-contractors, or non-contract employees),

3. In Argentina, the distinction between an employee and independent contractor is far less tangible than in most other countries. Under Argentine law, the assumption is that any relationship in which a person performs a service in exchange for money is first and foremost an employee-employer relationship. In practice, this means that it is very difficult for both local and international employers to prove that they have engaged the services of an independent contractor, rather than a non-registered employee. The crux of the distinction between the two, in Argentina, rests primarily in the existence (or lack thereof) of subordination of the individual to the employing company. Independent contractors: Must not work exclusively for a single employer Must not be subordinate to the employer in any economic, technical or legal sense, nor may their relationship exhibit any other signs of being a “labor relationship” Must not have their schedule, nor method of work, dictated or created by the employer

4. Must assume the risks of the services rendered May only offer their services to individual employers for up to 5 years Argentine labour laws, work culture, and hiring best practices We’ll now spend some time familiarizing ourselves with the various labour laws and regulations – including tax and work culture – which employers must comply with when hiring in Argentina. But first, some basic business facts about Argentina: The capital of Argentina is Buenos Aires The currency of Argentina is the Argentine Peso ($, ARS) The population of Argentina is around 46,166,500 (as of October 2022) Argentina is rates as 126th on the World Bank’s Ease of Doing Business Index Candidate background screening

5. As when hiring locally, one of the most useful and often necessary stages of the hiring process is conducting background checks on potential candidates. Background screenings help to reassure employers that the candidates they are considering for an open position are reliable individuals whose CVs are accurate, and backgrounds are trustworthy. Argentine labour laws, work culture, and hiring best practices Elements assessed and identified by background screening providers typically include: Criminal records Past addresses Reference checks (both professional and personal) Drug screening Bankruptcy checks Whilst especially necessary when hiring employees in a country you may be unfamiliar with, background screening can be tricky to implement internationally. In such a case, it is always best to defer the process to a trusted international background screening provider. Wages and salaries Argentina has a few unusual laws surrounding employee wages which may be quite different to those you’ve come across elsewhere. Tax and employer contributions Argentina’s tax system is progressive, meaning that higher earners pay more. Employers hiring in Argentina must contribute to their employees’ pension funds, health insurance, life insurance, labour risk insurance, family allowances, and the National Unemployment Fund.

6. Leave Employees in Argentina are legally entitled to a scalable number of leave days depending on their length of service at a given company, and their particular situation. Non-compete and equality laws in Argentina Any non-compete agreement which an employer makes with a former employee may last no longer than 2 years and must include sufficient ‘consideration’ as compensation for the former employee. Though the rate of consideration is undefined in law, it is generally assumed to be 60-70% of the employee’s former salary. Hiring employees in Argentina can be a fantastic means for a business to expand into the Latinx world, as well as accessing a large pool of highly- literate and intelligent Spanish-speaking talent. However, it has been made clear in the previous section that compliance with Argentine labour and tax laws can be extremely complex at the best of times. Key takeaways Hiring employees in Argentina requires strict compliance with a number of labour laws and regulations not found elsewhere in the world. Get In Touch With Us: Follow Us: global-background-screening-new +1 8555615890 globalbackgroundscreening/ www.globalbackgroundscreening.com Also Find Us On: https://tinyurl.com/y33hxuch https://tinyurl.com/3zp8u6b9