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Strong rejection of the Industrial Union to the prohibition of dismissals and double compensation


In a letter sent to the Executive Power, the entity maintains that these measures "are detrimental to the necessary expansion of the workers' endowments."

01/23/2021 12:08 PM

  • Clarí

  • Economy

Updated 01/23/2021 12:08 PM

After the Government extended the ban on dismissals for 90 days and until the end of 2021 the double compensation, now with a ceiling of 500 thousand pesos, the Argentine Industrial Union released a statement this Saturday in rejection of the decision of the Executive Power.


facing the challenge of recovering formal employment and sustainable growth

", is the title chosen by the entity that represents the business community to lead its position before the extension of the

presidential decree, published this Saturday

in the Official Gazette.

The UIA maintains that "in order to move towards an economic cycle that turns industrial policy and productivity improvements into assets in the country, it

is essential to normalize the situation in the labor market


In the opinion of the employers, neither of the two measures that were sustained in the context of the coronavirus pandemic with the argument of protecting employment, contribute to those objectives that they consider essential in the face of the economic crisis and the retraction of industrial activity.

Through DNU No. 39/2021, the Government extended 90 days the

prohibition of dismissals without cause


due to lack of work or force majeure

and until the end of the year the payment of double compensation also for dismissals without cause with a cap of $ 500,000 for the plus or duplication of compensation.

Miguel Acevedo, president of the Argentine Industrial Union.

This limit acts to the detriment of the highest salaries or those that have more seniority in a company.

For example, a worker who is entitled to compensation of $ 1,000,000, will receive $ 1,500,000 instead of double, resigning half a million pesos. 

The Government also extended by 90 days the prohibition of suspensions due to force majeure or lack or reduction of work, unless they are agreed with the union organizations.

"Argentina needs to start building

a scenario of


economic reactivation

, and the recovery of the level of formal employment in general and industrial in particular is the most important challenge," defines the statement from the entity chaired by Miguel Acevedo.

"Measures such as the prohibition of dismissals and suspensions or the double compensation regime do not point in this direction", warns in its response the UIA, which also emphasizes the undesired consequences in the labor market, since in its opinion, they constitute a

obstacle to combat black employment

and promote informality.

A long line in Independencia in 2000, in the City of Buenos Aires, to get a job in a restaurant during October (Photo: TV capture)

The decision to extend the decree, the businessmen conclude, goes "to the detriment of the necessary expansion of worker endowments with a view to boosting economic growth and

impacts on the objective of formalization


The conditions on dismissals do not apply to the hiring of workers made after December 13, 2019, when the dismissals were suspended for the first time with DNU 34/2019, nor to the Public Sector regardless of the legal regime to which it is subject agency staff.

Nor to companies, companies or entities that comprise it, as clarified in article 9 of the decree.

Despite these measures in force since the government took office or the outbreak of the pandemic, official data indicate

a significant drop in

formal salaried


in the private sector.

The most current data from the Ministry of Labor show that in October there were 5,795,171 formal private wage earners compared to 5,994,191 in March, when the pandemic broke out.

The drop in employment was due to the fact that companies do not replace the personnel who resign or retire and the "agreements" or "voluntary retirements" agreed with the laid-off personnel to avoid the prohibition of dismissal.

Look also

Alberto Fernández extends the ban on dismissals and double compensation

Rent freeze extended and evictions suspended until March 31

Source: clarin

All business articles on 2021-01-23

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