Hiring a new employee is a big step for both the employer and the employee. The employee positions themselves as the best candidate through CVs, references, and interviews. While the recruitment process can help shortlist and attract the best talent, employers can’t fully predict how it will turn out in real-world experience. Likewise, the talent might start the role enthusiastically but will only get to know the culture, expectations, and management style when the work begins. 

The probation period gives both parties a trial run to determine whether the employment relationship is the right fit. However, Argentina’s Ley de Contrato de Trabajo (LCT: Labor Contract Law) offers essential protection and flexibility for hiring or starting a new role. 

In this guide, we’ll explain how probation periods work in Argentina, what the legal framework requires, and what employers and employees should consider.

Definition of a Probation Period in Argentina

Under Argentine law (LCT Article 91 bis), the probation period (período de prueba) is the initial stage of the employment relationship expressly agreed to in writing within the contract. It is a legally permitted window during which the employer evaluates the employee’s ability, behavior, and compatibility with the company while the employee assesses the role, the work environment, and the conditions of employment. The primary purpose of this period is mutual assessment.

According to Argentina’s Ley Bases (Law 27.744), the employer must register the employee from the first day of work. If not, it means the employee has skipped the probation period.

During this time, both parties have the option to terminate the contract more flexibly than they would after the probationary period ends. In Argentina, there is no need for formal confirmation of acceptance at the end of the probation. If neither party terminates the contract before the probation period expires, the employment relationship automatically becomes a permanent contract.

Lengths of Probationary Periods in Argentina

Under the Ley Bases (Law 27.742), effective from July 9, 2024, the standard probationary period for indefinite-term (permanent) employment in Argentina has been:

Employment Type
Probationary Period
Indefinite-term (Permanent) Employment
6 months

An employer and union can extend this period through collective bargaining agreements.

Company Size
Maximum Probationary Period
6 to 100 employees
Up to 8 months
Up to 5 employees
Up to 12 months (1 year)

Legal Considerations of Probation Periods in Argentina

Probation periods in Argentina are governed by the national Employment Contract Law (Ley de Contrato de Trabajo, Law No. 20.744), specifically Article 92 bis, which was replaced and updated by Article 91 under the Ley Bases reform in 2024. This reform extended the standard probationary period and clarified employer and employee obligations during this phase.

Pay and Working Conditions

Workers on probation are entitled to the same pay and working conditions as any other employee. The standard work week remains at eight hours per day and forty-eight hours per week, and overtime is subject to legal regulations that require higher rates of pay. Minimum wage laws apply equally, regardless of probationary status, and employers must uphold occupational safety standards. Social security benefits, including health insurance and pension contributions, are also guaranteed from day one.

The law requires employers to register all probationary employees with the Federal Public Revenue Administration (AFIP). Failure to complete this registration invalidates the probationary arrangement and can result in the employee being granted the full protections of permanent employment from the outset. This protection would include entitlement to severance payments if the employment is terminated.

Termination and Notice

Either the employer or the employee may end the employment relationship during this time without needing to provide a reason. In such cases, the employer does not have to make a severance payment.

Although the law provides greater flexibility, a notice period still applies. Under Article 231 of Argentina’s Labor Law, a notice of fifteen days is generally expected even during the probation period.

If the employer does not register the employee with AFIP or attempts to manipulate the system by rehiring the same person multiple times to restart the probation period, it constitutes a breach of the law. In these cases, it means the employer has effectively waived the probation period, and the employee has gained the full rights and protections associated with permanent employment. Any dismissal would then require just cause or a severance package.

Vacation / Holidays

Employees on probation also accrue vacation leave and are entitled to public holidays, although they may not be able to use vacation days until after the probationary period ends. Argentina recognizes fifteen national public holidays each year. If any of these occur while an employee is on probation, the employee is entitled to the day off with regular pay. If an employee is required to work on a public holiday, the employer must compensate them at twice their regular pay rate.

Also, an absence by the employee during probation does not automatically extend the probation period. 

Although vacation time starts to accrue from the first day of work, employees generally cannot take vacation during the probationary period. According to Article 150 of the Labor Law, they must complete at least six months of continuous service before becoming eligible to use their accrued vacation days. If employment ends during probation, the employee is entitled to a proportional cash payment for the accumulated but unused vacation days they earned during their employment.

Social Security and Benefits

From the very first day of employment, regardless of whether the employee is on probation, the employer must enroll them in the national social security system. It ensures the employee is covered by a health insurance plan (known as “obra social”), contributing toward their pension, and protecting them through risk coverage in case of workplace accidents or occupational illness.

Employers must also make regular monthly contributions to government programs, including the Argentine Integrated Social Security System (SIPA), the National Social Security Administration (ANSES), and the occupational risk insurance scheme (ART). With these contributions, the employees on probation will still get the full range of protections and benefits the Argentine labor law offers.

Benefits of Probation Periods in Argentina

While it’s a legal requirement in some employment types, the probation period also serves practical purposes for both sides. Here are the advantages:

  • Pros

They can leave the position easily and quickly if the role or company is not as expected. (especially in the first month).

They enjoy fundamental labor rights and compensation protection from the first day of employment.

  • Cons

Employers can thoroughly assess workers’ performance before the commitment and costs associated with permanent employment.

They can terminate a worker’s employment without proving the cause or incurring severance liabilities.

They can create a structured timeframe focused on onboarding and training needs. 

Conclusion

Understanding the ins and outs of the probationary period in Argentina is crucial for your business to expand into the country compliantly. At Remote People, we offer services to help you get it right so you can avoid any issues and start hiring efficiently in Argentina. 

Frequently Asked Questions

As of July 9, 2024, the standard probationary period for all indefinite-term (permanent) employment contracts in Argentina is six months. This law replaces the previous 90-day limit.

Yes, but with conditions. During the first 30 days, either party can end the employment without notice or reason. After 30 days, the employer/employee needs to provide a 15-day notice. There is no need to pay a severance fee at any point during the probationary period.

Yes, collective agreements can extend it, up to 8 months for companies with 6 to 100 employees and up to 12 months for those with five or fewer. However, the extension must be in the agreement to be valid.

Employees get vacation time during probation, but cannot use it until they have completed 6 months of continuous service with the same employer. So, the employee cannot take any vacation leave, but their time still counts toward their entitlement.