Employee Leave Policies and Perks for Argentina’s Tech Talent

Argentina is a hub for well-educated professionals, making it an ideal location to complement your workforce with skilled labor or even expand your business. Before hiring from this region, you should know that the Argentine Labor Law aims to protect the interests of workers in the region. This law stipulates how employee contracts are to be handled, even stating the benefits employers are expected to provide. 

One of the most widely talked about employment benefits in Argentina is leave, which describes a period during which employees are allowed to take time off work. While employees are entitled to different types of leave, each of them differs slightly. However, it’s crucial to master Argentina’s leave policies and perks to help you retain your best talent, whether employees or contractors. 

Leave Entitlements for Employees and Contractors 

The first thing to note about Argentina’s leave entitlements is that the country’s twenty-three provinces offer several variations of these benefits. However, internal company rules, individual contracts, and collective bargaining agreements may mention several regulations that’ll further alter these benefits by introducing unique terms and conditions. Hence, creating a somewhat complex framework for leave benefits in the country. 

Before going into leave entitlements, it’s crucial to point out that these benefits are available for employees and contractors. While employee benefits are stipulated by Argentine Labor Law, leave benefits for independent contractors may vary based on contractual agreements. 

Here’s a list of the main leave entitlements available to employees and contractors: 

• Annual Leave
• Maternity Leave
• Paternity Leave
• Sick Leave
• Public Holidays
• Unpaid Leave

Annual or Earned Leave in Argentina

The annual leave refers to a period during which employees are allowed to take time off work to recuperate. It’s also referred to as earned leave because the duration of the break is dependent on how long the employee has worked with the organization. 

Maternity Leave in Argentina

The Argentina maternity leave refers to a duration when female workers are allowed to take time off work after childbirth. This break aims to improve the overall health of female employees while giving them more chances to bond with their newborn. While the entire duration of the maternity leave is 90 days, employees may opt to extend the duration depending on the conditions surrounding childbirth. 

Female employees are entitled to full payment of their salary during their maternity leave. However, if they choose to extend their time off work, the extra time taken will be unpaid for. 

Paternity Leave in Argentina

Like maternity leave, paternity leave aims to ensure that fathers are present at the early stages of their child’s postnatal development. Argentine employers are expected to offer this paid time off to meet global standards. While this leave may not be as long as those for female employees, it offers exciting benefits. Employers have the discretion to lengthen the paternity leave for male employees.

Sick Leave in Argentina

If an employee’s health fails or they suffer an injury related to work, they are entitled to paid time off work to recuperate. The duration of the sick leave is dependent on the duration of the employee’s service with your organization and the presence or absence of dependents. Employee payments during sick leave will be a shared burden between the employer and the insurance company. 

Further reading: Payroll Taxes and Expenses in Argentina

Maternity and Paternity Leaves: Aligning Benefits for a Diverse Workforce 

In the previous section, we highlighted the purpose and benefits of paternity and maternity leaves. Now, we’ll further break down intricate details about each of them. 

Here’s a table showing everything you need to know about maternity leave and paternity leave: 

Sick Leave: Balancing Obligations and Flexibility 

As mentioned earlier, sick leave is a form of support offered by employees to those whose health fails and prevents them from carrying out their roles. If an employee is sick or suffers a work-related injury, they are entitled to some time off work. The employer is supposed to pay for the first fifteen days of sick leave, while the insurance company will pay for the remaining days. 

The duration of the leave is dependent on the length of the employee’s service. Employees with up to five years of service are entitled to three months of paid sick leave. If this same employee has a family and dependents, they will get 6 months of leave. However, employees who have worked with your organization for more than 5 years are entitled to 6 months of sick leave. Those with family and dependents will get a 12-month break. 

If an employee’s sickness or health challenges are not work related, the paid sick leave is covered by the employer. It’s crucial to note that employers are entitled to request an authentic medical examiner’s report or that the employee be examined by a medical examiner they’ve appointed. This step is carried out to verify the health condition of the employee and discourage fraud. If an employee is unable to resume work after the sick leave has elapsed, employers are free to keep the affected employee on the payroll for up to 12 months without paying a salary. 

If the employee has developed a permanent disability that prevents them from carrying out the same roles as before, the employer can offer any work that fits their current condition. However, if the employer can’t find suitable work for the affected employee, they can terminate their employment and pay them a severance fee.  

Special Leave Considerations: From Bereavement to Adoption

Aside from the benefits mentioned above, there are several other alternatives available to employees. While these leaves are not mandated by law, they create rewarding work conditions to attract the best talent. So, you have the discretion to decide whether or not to offer these benefits and how much time to offer.

Here’s a list of special leave considerations available to employees and contractors: 

• Adoption Leave: Employers can offer two days off work for employees who have recently adopted. 
• Bereavement Leave: This refers to the time employees take off work to mourn the death of close family. If the employee loses a spouse, they are entitled to three days off work. However, if they lose a child or parent, they get 3 days off work. On the other hand, an employee who suffers the death of a sibling is granted one day off work. 
• Marriage Leave: If an employee gets married, they are entitled to 10 days off work. 
• Educating Leave: Employees who have educational commitments to improve their skills and grow their careers can get up to 10 consecutive days off work. 

Annual Leave: Crafting Policies for Maximum Impact

Now, let’s further discuss the details of the Argentine annual leave. While employees who have worked for up to five years are entitled to a 14-day annual leave, those who have served between five and ten years will get a 21-day leave. On the other hand, employees with ten to twenty years of service will get 28 days off work. However, those with over 20 years of employment with the organization will earn 35 days of annual leave. 

You’d do well to note that Argentine labor laws stipulate that employees should be fully compensated during their annual leave. This leave period for Argentine organizations should occur between October 1st and April 30th annually. The leaves may be broken into three intervals, with one falling during the summer. The Argentine Labor Law also makes no provisions for the rollover of unused annual leave days to the following year. 

Perks and Benefits: Bridging Gaps Between Employees and Contractors 

While Argentine Labor Law makes a clear distinction between employees and independent contractors, many employers are tempted to offer them similar work benefits to ensure competitiveness. Let’s review the unique perks Argentine employers can offer to their employees and contractors based on their discretion and available resources. 

• Health Insurance: Depending on the nature of your work, you may offer health insurance to your employees. A good way to do this is by designing health coverage plans for employees and including negotiated health discounts in your agreement with contractors. 
• Equity and Stock Options: Employers can also offer employees and contractors part of the company’s equity and stock. This benefit creates a sense of belonging in your workers, allowing them to share in company profit too. However, the stocks are sold back to the company when the employee or contractor leaves. 
• Lifestyle Benefits: Lifestyle benefits are another interesting perk employers can offer to employees and contractors. These benefits may include meal vouchers, gym access, free transport, vacations, or free tech equipment. 

Read more: Employee Benefits in Argentina

Crafting Custom Benefits Packages: Employee and Contractor Perspectives 

No doubt, leaves and employment benefits are an effective way to attract the best talent to work for you. To craft a custom benefits package, follow these tips: 

• Study what’s stipulated by labor law. 
• Study any available industry standards.
• Check what your competitors are doing. 
• Check the current or projected profit margin and determine how these benefits may affect them. 
• Recreate your employee and contractor agreements to contain these new benefits. 

Navigating Compliance and Flexibility in Benefits Provision

Argentine employers are expected to ensure legal compliance by offering employees the minimum acceptable leave benefits. While employees have the contractual freedom to alter contractor benefits, it’s crucial to ensure your perks match competitors and global standards. Globy is a digital solution that will connect you with the best talent in Argentina. This hiring service handles most HR processes, including recruitment, payment, and rewarding employees, allowing you to focus on other core aspects of your business. 

Further reading: Work Hours in Argentina

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Article author

Vit Koval

Co-founder at Globy

A top Global Hiring voice on LinkedIn, co-founder of Globy, and host of Default Global. Using deep expertise in global hiring, remote work, and global business expansion to help companies excel worldwide with innovative strategies.