Labor law
The same task, done by an employed engineer or by one who invoices as a freelancer, is subject to completely different rules. What decides which applies is the reality of the relationship, not what the paper says.
01Employee or independent contractor
An engineer can work in two very different ways as far as the law is concerned. In an employment relationship (relación de dependencia), they make their work available to an employer who organizes and directs it, in exchange for pay: the Ley de Contrato de Trabajo (Employment Contract Act, Law 20,744) and the applicable collective bargaining agreement govern. As an independent contractor, they provide services or works to their clients on their own account and at their own risk, issue invoices, and the Civil and Commercial Code applies.
What decides which is which is not the name of the contract but the reality of the relationship. Subordination is the central indicator: who sets the schedule, the place and the manner of the work, what tools are used, whether there is exclusivity, whether the income is fixed and monthly. Article 23 of the Act presumes that providing services for another is an employment contract, unless proven otherwise; the 2024 reform (Law 27,742) narrowed that presumption when professional services are contracted with invoicing and bank payment, but the principle of the primacy of reality (substance over form) remains in force.
Argentine labor law underwent major changes in 2024. The figures on this page follow the text of the Employment Contract Act with those reforms, but for a real case you have to read the current text and the applicable collective bargaining agreement, and consult a labor lawyer.
02The principles of labor law
- Protection: the worker is the weaker party to the contract, and the law compensates for it. If there is doubt about how to interpret a rule, the one most favorable to the worker applies (Article 9).
- Non-waivability (Article 12): any waiver of the rights granted by the law and by collective agreements is void, even if the worker signs it.
- Primacy of reality: what happens counts, not what the papers say.
- Continuity: in case of doubt, the contract is presumed to be of indefinite duration.
03Working conditions
| Topic | General rule |
|---|---|
| Working hours | 8 hours a day or 48 a week (Law 11,544); 7 hours for night work |
| Vacations | 14 calendar days up to 5 years of seniority, 21 up to 10, 28 up to 20 and 35 thereafter (Article 150) |
| Supplementary annual salary (aguinaldo) | Half of the highest monthly pay in each half-year, paid in June and December |
| Probationary period | Six months since the 2024 reform, extendable by collective agreement in small companies; during this period the employee can be dismissed without seniority severance pay, with 15 days’ notice |
| Collective bargaining agreement | An agreement between the union and the employers’ chambers (Law 14,250) that sets minimum wages, job categories and conditions for the industry; what is agreed in the individual contract cannot be lower |
04The end of the relationship and severance pay
The contract ends by the worker’s resignation, by agreement, by dismissal for just cause —a serious breach (“injuria”) that makes it impossible to continue the relationship— or by dismissal without cause. In the latter case the employer must pay three main items:
| Item | Article | How it is calculated |
|---|---|---|
| Seniority severance pay | 245 | One month of the best normal and regular monthly pay of the last year for each year of service or fraction greater than three months; never less than one month; the base is capped according to the collective agreement |
| Omitted notice | 231 and 232 | If advance notice was not given: one month’s salary with up to 5 years of seniority, two months with more |
| Integration of the month of dismissal | 233 | If the dismissal is without notice before the last day of the month, the days remaining to complete it |
Estimate of the three main items under the general rules of the Employment Contract Act. It does not include the collective agreement cap, the aguinaldo on the notice and the integration, unused vacation or other items: it is for understanding how the calculation is built, not for making a claim.
05Occupational risks, health and safety
Every employer must contract a workers’ compensation insurer (aseguradora de riesgos del trabajo, ART; Law 24,557), which covers accidents and occupational diseases. And the employer must comply with the health and safety conditions of Law 19,587 and its implementing Decree 351/79; in construction, Decree 911/96 also applies. For an electronic engineer this has two sides: as the employer of a workshop or of a crew of installers, they are responsible for ensuring compliance; and as a professional, they are often the one who designs the electrical protections, the switchboards and the safe work procedures.
06Where it shows up in electronics
| Situation | The labor issues it brings |
|---|---|
| A company “hires” technicians as simplified-regime taxpayers (monotributistas) with fixed hours | Risk of their being considered unregistered employees |
| Live work on a switchboard | Decree 351/79, protective equipment and procedures |
| After-hours maintenance on-call duty | Working hours, overtime and rest according to law and collective agreement |
| An engineer who develops a product as an employee | Ownership of what is created and confidentiality agreements |
07Activities
For three work situations of engineers you know, list the indicators of subordination and decide whether it is an employment relationship or independent work.
Find the collective bargaining agreement of an industry where technicians or electronic engineers work and identify the job categories, working hours and additional payments.
Walk through an electronics laboratory and list what Decree 351/79 requires for its electrical installation, fire protection and personal protective equipment.
08Common mistakes
- Disguising an employment relationship with invoices. The reality of the relationship prevails.
- Having someone sign a waiver of rights. It is void.
- Believing that seniority counts only in whole years. A fraction of more than three months counts as a year.
- Forgetting the workers’ compensation insurer. Without one, the employer is directly liable for accidents.
- Calculating with old rules. The 2024 reform changed the probationary period and other points.
09Self-assessment
What central indicator distinguishes an employment relationship?
Subordination: the employer organizes and directs the work.
With 7 years and 2 months of seniority, how many months of seniority severance pay are due?
Seven: the additional two months do not exceed three months.
How long is the notice period with 8 years of seniority?
Two months, because it exceeds five years.
Which law requires contracting a workers’ compensation insurer?
Law 24,557.
10Further reading
- Julio Armando Grisolía. Manual de derecho laboral. Abeledo Perrot (in Spanish). The most widely used reference textbook, with each institution explained and the main rulings.
- Ley de Contrato de Trabajo (Employment Contract Act, Law 20,744) and Law 27,742. Updated texts. InfoLEG (in Spanish). The general regime and the 2024 reform, which must be read together.
- Law 19,587 and Decree 351/79. Occupational health and safety. InfoLEG (in Spanish). The conditions for electrical safety and for work facilities.