Argentina: government extends ban on layoffs for 60 days

Initially introduced via a decree from the beginning of April until the end of May (see article n°11793), the ban on layoffs has now been extended until 31 July, under a new decree published last week. First implemented on 20 March, lockdown in Argentina has also been extended until 7 June. However, there is greater scope for variations on a regional level, with Buenos Aires and its surrounding area subject to more stringent restrictions on activities. It is in this part of the country where a large proportion of Argentina’s industries are located. However, since 9 May sectors have been allowed to resume business provided that they comply with health recommendations and provide transport for workers. The latest decree states that it is essential to ensure job preservation for a reasonable period of time so as to ensure “social peace” in the country. Argentina’s economy saw a decline of 11.5% in March compared to the previous year, according to the latest findings from the INDEC (National Institute of Statistics and Census of Argentina), marking the sharpest fall for 10 years. According to reports by specialised press, the CGT trade union organisation estimated that the expiry of the first decree banning layoffs would have led to 600,000 job losses across the country by June. This ban on dismissals is linked to a series of measures that have been put in place since the start of lockdown, in particular the work and production assistance (ATP) programme, whereby the state covers 50% of wages (see article n°11894). According to the Ministry of Productive Development, 420,000 companies have signed up to this scheme.