Ban on layoffs in Argentina to end in December

With the economy on the way to recovery, the Country’s government does not intend to continue with the double severance and ban on layoffs beyond 2021


Due to the economic slowdown resulting from the pandemic-induced mobility restrictions and lockdowns, the Government of Argentina had brought into effect two measures — the double severance rule and a ban on dismissals. However, now the economy appears to be on the path to recovery, and therefore, the Government is likely to discontinue these measures after December 2021.

In the initial stages of quarantine, dismissals without just cause were banned in order to protect employees. As for the double compensation rule, employees had to be paid double severance packages on being dismissed. While this rule was brought into effect for only about six months initially, it was extended when the pandemic struck.

Now, the Government has been hinting that these measures were special and were enforced because the situation was also unusual; now that normalcy seems to be returning, these measures are likely to be discontinued at the end of 2021.

Argentina hopes to recover all the jobs that were lost during the pandemic. In fact, the Country anticipates better employment levels in the manufacturing and construction sectors as compared to pre-pandemic times.

Maximum jobs are being created in the software space now. In the past two years, jobs in this sector went up by almost 18 per cent, as reported by Buenos Aires Times. Many jobs and companies were lost in the manufacturing, tourism, construction, transportation and finance sectors. On the whole, jobs in the private sector fell by four per cent as per data from the Productive Development Ministry.

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