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The Government will extend the prohibition of dismissals and double compensation


The regime was due next Monday. Companies will not be able to fire for 90 days and the double severance will be in force until the end of the year.

01/21/2021 20:15

  • Clarí

  • Economy

Updated 01/21/2021 20:15

Finally, and despite the doubts, the Government will

extend once again for another 90 days

the regime that provides for the prohibition of dismissals for 90 days and the double compensation in the case of layoffs without cause will govern until the end of the year.

Considered an emergency measure to counteract the impact of the pandemic, the deadline expired this Monday.

Business and industry sectors criticize the new extension because, they say, it

discourages the creation of new jobs and increases labor costs


With the endorsement of Alberto Fernández, the economic cabinet decided on Thursday afternoon to

continue with the anti-dismissal coverage

, which the Government applied by decree to

face the crisis and the lack of activity during the quarantine


"There is no justification for that, since suspensions fell and the hiring curve changed and the industry is recovering,"

Daniel Funes de Rioja, vice president of the UIA and head of COPAL, the food chamber

, told



Regarding this last aspect, the Indec effectively reported that in November of last year, the use of the industry's installed capacity

stood at 63.3%

, which represents a 3% year-on-year growth.

However, specialized consultants agree that the service sector (tourism, gastronomy and entertainment, among others), which are labor intensive,

continues to be semi-paralyzed

by the restrictions imposed by the second wave of infections.

Funes de Rioja says that the extension of the measure "

distorts the concept of emergency

" and that although "wage costs in Argentina are lower than in Mexico and Brazil, they make labor costs more expensive and take away our competitiveness."

For the manager, the ban on firing staff discourages the creation of new formal jobs and "increases informality."

And he concluded that this would be the third time that "what I consider is a triple labor force: layoffs, suspensions and double compensation" has been extended.

Source: clarin

All business articles on 2021-01-21

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