Argentina: further extension to job support programme

As the coronavirus pandemic continues to advance in Argentina, the country’s government has extended the pillars of its employment and business support programme (see article n°11960). At the same time, lockdown in Buenos Aires and its wider region imposed on 20 March is ongoing, until at least 30 August, while other localities in the country have had to go back into lockdown. Although the majority of industries have resumed production, with health protocols in place, the population’s level of consumption is slowing and some sectors have not been authorised to recommence activity. As such, the ban on dismissals “without just cause and for reasons of lack or reduction of work and for force majeure” has been extended until 30 September, as stipulated in the decree. Dismissals or “suspensions” that are enacted in violation of the law will remain invalid. This ban does not apply to contracts signed after the law came into force on 31 March 2020. The work and production assistance programme (ATP) has also been extended once again, but this time with amendments. Under the wage subsidy system, so-called “critical” sectors – tourism, entertainment, culture, health and sports – will benefit from state aid that amounts to the equivalent of two minimum wages, the latter amounting to 16,875 pesos (229 euros). For other sectors, the upper limit will be the equivalent of one and a half minimum wages. In addition, the extension of the scheme provides for a range of loans at preferential rates for companies in difficulty and a staggering or reduction of employer contributions by up to 95% for critical sectors.