---
title: "Argentina Termination & Severance 2026"
description: "Argentina termination 2026: mandatory severance from day one, 1 month salary per year of service, notice 1 month or 2 months, final pay within 4 days."
canonical: https://www.teamed.global/country-hiring-guides/argentina/termination-and-severance
---

Argentina · Termination child

Served by Teamed vetted partner-entity network in Argentina

# How do you *terminate an employee in Argentina* in 2026?

Argentina's [Ley de Contrato de Trabajo](https://servicios.infoleg.gob.ar/infolegInternet/anexos/25000-29999/25552/texact.htm) (LCT) requires mandatory severance from the first day of employment: 1 month of salary per year of service, with no minimum tenure before it's owed. Dismiss without cause and the bill arrives immediately.

Last reviewed 12 June 2026 · Argentina guide

![A warm view of Buenos Aires streets at dusk, with colourful buildings and a plaza in soft evening light.](/images/country-guides/argentina-termination-severance.webp)

Illustration · Buenos Aires, Argentina

Answer.cite this

Dismiss any employee without cause and severance is owed immediately. The law requires **1 month of last salary per year of service**. There is no minimum tenure. An employee dismissed after one month still gets a proportional payment ([LCT Art. 245](https://servicios.infoleg.gob.ar/infolegInternet/anexos/25000-29999/25552/texact.htm)).

Notice is **1 month for under five years of service, 2 months for five years or more**. You can pay it out instead of requiring the employee to work it. The minimum resignation notice an employee must give is 15 days ([Ley 27.802](https://www.argentina.gob.ar/normativa/nacional/ley-27802-423680/texto)).

The salary base used in the severance formula is capped. It cannot exceed **3 months times the average collective-agreement (CCT) monthly wage for your sector**. Final pay must be settled within 4 days of the termination date.

![An open labour law textbook on a wooden desk in a Buenos Aires office, with a pen resting on the page.](/images/country-guides/argentina-termination-polaroid-1.webp)

Day one obligation

## What grounds and procedure govern Argentina terminations?

Argentina has no at-will employment. Every dismissal is either **with cause (justa causa)** or **without cause**. Without cause means mandatory severance from the first day of employment ([LCT Art. 245](https://servicios.infoleg.gob.ar/infolegInternet/anexos/25000-29999/25552/texact.htm)).

All dismissals must be in writing and sent by registered telegram. Verbal dismissals have no legal weight. Miss the written form and the dismissal is treated as without cause, regardless of the reason.

Under the [Ley de Contrato de Trabajo](https://servicios.infoleg.gob.ar/infolegInternet/anexos/25000-29999/25552/texact.htm), just cause typically covers:

- **Gross misconduct**, serious breach of contractual duties, dishonesty, or violence
- **Repeated insubordination** after documented warnings
- **Abandonment of post**, where the employee fails to appear and does not respond to a formal telegram requiring their return
- **Fraudulent acts** against the employer or colleagues

Redundancy is not a free-standing cause that avoids Art. 245 severance. Economic restructuring still triggers the full formula unless the Procedimiento Preventivo de Crisis de Empresa (PPCE) process applies.

### Protected categories

Argentine law prohibits dismissal on grounds of pregnancy, maternity leave, union activity, whistleblowing, disability, and political or religious affiliation. Dismissals found discriminatory under [Ley 23.592](https://servicios.infoleg.gob.ar/infolegInternet/anexos/0-4999/638/texact.htm) or LCT Art. 182 carry additional remedies that sources differ on; those remedies exceed the standard Art. 245 formula and should be modelled separately.

### Probation terminations

During the standard 6 months probation period (extendable to 8 months for companies with collective agreements), the employer may terminate with **no notice and no severance** under LCT Art. 231(b) as amended by [Ley 27.802](https://www.argentina.gob.ar/normativa/nacional/ley-27802-423680/texto). The 6 months mark ends this window: full protections apply once the employee passes probation.

### Dismissal procedure

Every step must be documented and delivered by *telegrama laboral* (the statutory registered telegram) or notarised letter. The cause stated in the initial telegram is the only cause available at tribunal. For a without-cause dismissal: issue the telegram, state *sin invocacion de causa*, calculate the Art. 245 severance plus notice pay, and settle the liquidacion final within 4 days. ARCA (formerly AFIP) deregistration must follow; late filing generates penalties.

1. Establish and document the cause Assemble contemporaneous evidence before issuing any dismissal communication. In Argentina, the cause stated in the initial telegram is the only cause available at tribunal.
2. Issue the telegrama laboral Send the statutory registered telegram to the employee's registered address, stating the cause, the effective date, and the amounts owed. Verbal or informal notice carries no legal weight.
3. Calculate the liquidacion final Prepare the full settlement: Art. 245 severance, notice pay or worked notice, proportional aguinaldo, accrued holiday, and outstanding salary. Settlement is due within 4 days.
4. Obtain signed receipt The employee signs a recibo de haberes final confirming amounts paid. A dispute on the amount does not delay the employer's obligation to settle within the statutory deadline.
5. File ARCA deregistration Notify ARCA (formerly AFIP) and process final social security contributions through SIPA. Delays generate penalties and block the employee's benefit entitlements.

## How much notice is required in Argentina?

Notice is **1 month for under five years of service, 2 months for five years or more**. This has been the rule since 6 March 2026 ([Ley 27.802](https://www.argentina.gob.ar/normativa/nacional/ley-27802-423680/texto)).

The employee can work the notice period or you can pay it out. Either way, it is included in the final pay settlement.

| Length of continuous service | Statutory employer notice |
| --- | --- |
| During probation | None (0 days required) |
| Under 5 years | 1 month |
| 5 years or more | 2 months |

The employee's statutory resignation notice floor is 15 days regardless of tenure. Collective agreements (convenios colectivos de trabajo, CCTs) frequently impose longer contractual notice on both sides, particularly for professional or managerial grades. The contract cannot go below the statutory floor.

### Integration of notice with the severance calculation

When terminating without cause, the employer pays both the notice pay and the Art. 245 severance. They are separate obligations: notice compensates for the loss of the working period; severance compensates for the end of employment itself. Paying one does not reduce the other.

During probation, where the employer terminates with no notice or severance obligation, the employee must still give 15 days to resign.

## How is severance calculated in Argentina?

Severance is **1 month of last monthly salary per year of service**, or a fraction for a part year ([LCT Art. 245](https://servicios.infoleg.gob.ar/infolegInternet/anexos/25000-29999/25552/texact.htm)).

There is no minimum tenure. An employee dismissed in their first year gets a proportional amount based on months actually worked.

Argentina.gob.ar · Ministerio de Trabajo · LCT Art. 245

Severance formula: **1 month of last monthly salary per year of service**, with the salary base capped at **3 months times the average CCT monthly wage** for the applicable sector. No minimum tenure applies: every employee dismissed without cause is entitled from their first working day. Final pay must be settled within 4 days of termination.

Source: [Ley de Contrato de Trabajo No. 20.744, Art. 245 (texto actualizado)](https://servicios.infoleg.gob.ar/infolegInternet/anexos/25000-29999/25552/texact.htm)

### The salary base cap

The most important constraint in the formula is the salary base cap: the monthly salary used in the calculation cannot exceed **3 months times the average collective-agreement (CCT) wage for the sector**. Each industry has its own CCT, so the effective cap varies. A technology or financial-services employee on a high salary will be subject to a lower multiple than their headline salary suggests. Confirm the applicable CCT rate for each hire before modelling severance exposure.

### What the liquidacion final includes

Beyond the Art. 245 severance, the final settlement typically covers:

- **Notice pay**: the 1 month or 2 months notice period if not worked
- **Proportional aguinaldo (SAC)**: the fraction of the annual supplementary salary accrued to the termination date
- **Accrued unused holiday**: calculated on the employee's daily salary rate
- **Outstanding salary**: for the days worked in the final pay period

Tax treatment: Art. 245 severance paid for termination without cause is exempt from income tax under Argentine tax law. Notice pay is treated as taxable income. Confirm current treatment with a local adviser, as ARCA (formerly AFIP) guidance on the Ley 27.802 changes was still being published at the time of this review.

## What happens with collective dismissals in Argentina?

Argentina does not use a fixed headcount trigger like the UK or EU. The law creates the Procedimiento Preventivo de Crisis de Empresa (PPCE): a government conciliation process. It activates when layoffs exceed a proportional share of the employer's total workforce ([Ley 24.013 Art. 98 to 105](https://servicios.infoleg.gob.ar/infolegInternet/anexos/0-4999/412/texact.htm)).

The trigger is proportional, not a fixed number. Companies with fewer than 400 employees follow different rules than larger employers.

The PPCE is administered by the Ministerio de Trabajo and follows this sequence:

- The employer files a crisis petition, including the planned dismissal scope and grounds
- Employee representatives (union or elected committee) are notified and join a conciliation table
- The Ministry convenes the parties and mediates
- The process runs until the Ministry issues a resolution or the parties reach an agreement; there is no fixed statutory deadline, making planning difficult

If the employer proceeds with dismissals before or without the PPCE where it was required, the dismissed employees can seek reinstatement or a court-ordered uplift on the standard Art. 245 severance. The financial exposure from a procedurally defective collective redundancy is material.

### Proportional triggers

The workforce-percentage thresholds that activate the PPCE vary by employer size and are set in Ley 24.013 rather than by fixed headcounts. You cannot apply a simple rule such as "dismiss more than 20 people and the PPCE applies": the applicable percentage depends on the employer's total registered headcount. Take specialist advice before any multi-person restructuring.

### Works councils and union involvement

Argentina has no works-council system equivalent to Germany or the Netherlands. Union involvement in individual dismissals is limited to union delegates and officials, who carry specific protection under Ley de Asociaciones Sindicales (Ley 23.551). Dismissing a union delegate without following the exclusion-from-protection (*desafuero*) process is automatically null. The *desafuero* requires a court order, not just an internal process.

## Can you end employment by mutual agreement in Argentina?

Yes. Both parties can end employment by written agreement. Both must sign a notarised agreement or a Ministry of Labour conciliation act settling all claims ([LCT Art. 241](https://servicios.infoleg.gob.ar/infolegInternet/anexos/25000-29999/25552/texact.htm)).

Get the formalities right. A poorly documented mutual exit can be treated by a tribunal as a dismissal without cause. That means the full severance formula applies anyway.

The formal routes for a clean mutual exit are:

- **Notarised agreement**: both parties sign before a notary public (*escribano*). The agreement must confirm the final amounts paid and state that all employment claims are settled.
- **SECLO conciliation**: settle through the Servicio de Conciliacion Laboral Obligatoria (SECLO) in Buenos Aires, or the equivalent provincial labour conciliation service. A SECLO-endorsed agreement is binding and cannot normally be challenged. This is the preferred route when there is any dispute about amounts.

There is no statutory provision for a tax-exempt payment analogous to the UK settlement-agreement structure. The agreed severance is typically structured to match or exceed the Art. 245 formula, and the tax treatment follows the character of each component.

### Resignation

An employee may resign by giving 15 days notice in writing. Resignation requires no payment of Art. 245 severance from the employer. Accrued holiday, proportional SAC, and outstanding salary must still be settled in the liquidacion final within 4 days.

Argentine courts scrutinise whether a resignation was genuinely voluntary. An employer who pressures an employee to sign a resignation letter risks a tribunal finding of forced dismissal, converting the resignation into an Art. 245 event.

## How Teamed runs Argentina terminations

Teamed becomes your legal [employer of record](/lp/employer-of-record) in Argentina for [**from $599 per employee per month**](/pricing), with **zero FX mark-up** in any currency. The severance formula, PPCE thresholds, and final pay all run through Teamed's Argentina operations.

We handle the dismissal paperwork, telegram drafting, severance calculation, final-pay reconciliation, and ARCA deregistration on **one platform**. The decision to dismiss, on what grounds, and on what timeline stays with you.

**Real HR and legal experts** handle your Argentina hires, from offer letter through every SIPA contribution and year-end reconciliation. **An actual person**, not a pooled queue. There is **no setup fee** and **no exit fee**, and employer cost **passes through at cost, itemised** on every invoice.

The split of responsibilities under EOR for Argentina terminations:

| What Teamed handles | What the client decides |
| --- | --- |
| Art. 245 severance calculation against the applicable CCT base | Whether to dismiss, why, and when |
| Telegrama laboral drafting and dispatch | The grounds and the supporting documentation |
| Liquidacion final calculation and settlement within 4 days | Whether to offer an enhanced settlement above the statutory minimum |
| ARCA (AFIP) deregistration and final SIPA contributions | Communication with the wider team |
| PPCE filing and Ministry conciliation coordination for collective events | The business rationale for any restructuring |
| SECLO or notarised mutual-agreement process where a clean exit is preferred | The commercial terms of any mutual exit |

The economic case for EOR in Argentina depends on headcount. Teamed carries the procedural risk and the severance exposure modelling at scale across many employers; for a single employer, Argentine tribunal defence is expensive, particularly when union-delegate protection or discrimination claims arise.

EOR payroll, contractor onboarding, and entity setup all live on **one platform**. A contractor who converts to employment under the LCT keeps their record, and that same employee can **graduate** from EOR to your own Argentine entity without switching systems. Run the [Crossover Calculator](https://www.teamed.global/tools/crossover-calculator) to see the month the model flips. EOR is the right model for an early Argentina hire, **until it isn't**. Start from the Argentina hiring overview; each guide takes one layer of Argentine employment law.

Key sources: [LCT (Ley 20.744, InfoLeg)](https://servicios.infoleg.gob.ar/infolegInternet/anexos/25000-29999/25552/texact.htm), [Ley 27.802 (Argentina.gob.ar)](https://www.argentina.gob.ar/normativa/nacional/ley-27802-423680/texto), and [Ministerio de Trabajo](https://www.argentina.gob.ar/trabajo).

## Frequently asked questions

Is severance mandatory in Argentina even without misconduct?

Yes. Under LCT Art. 245, any dismissal without just cause triggers mandatory severance of 1 month of last monthly salary per year of service, with no minimum tenure. Even an employee dismissed in their first months of work is entitled to a proportional payment.

How much notice does an employer give in Argentina?

Under LCT Art. 231 as amended by Ley 27.802, employers must give 1 month notice for employees with less than five years' service, and 2 months for five or more years. During probation, no notice is required. The employee's resignation notice floor is 15 days.

What is the salary base cap on Argentine severance?

The monthly salary used in the Art. 245 calculation is capped at 3 months times the average monthly wage set in the applicable collective agreement (convenio colectivo de trabajo, CCT) for the employee's sector. Each industry has a different CCT, so the effective cap varies. Confirm the applicable CCT rate with a local adviser before modelling exposure.

When must final pay be settled after termination in Argentina?

LCT Art. 128 requires the liquidacion final, covering severance, notice, proportional aguinaldo, accrued holiday, and outstanding salary, to be paid within 4 days of the effective termination date. Missing this deadline creates additional liability.

Does Argentina have collective redundancy rules like the UK?

Not in the same fixed-headcount form. Argentina's Procedimiento Preventivo de Crisis de Empresa (PPCE) under Ley 24.013 applies when layoffs exceed proportional workforce thresholds, which vary by employer size. Companies with fewer than 400 employees on payroll follow different rules. There is no fixed consultation timetable: the Ministry of Labour runs the conciliation until it concludes.

Can you terminate by mutual agreement in Argentina?

Yes. LCT Art. 241 allows a notarised mutual termination agreement or a settlement through the SECLO conciliation service. Agreements must be in writing and formally executed. A poorly documented mutual exit can be recharacterised by a tribunal as a dismissal without cause, triggering the full Art. 245 severance obligation.

Teamed Legal Operations

The most common Argentina termination mistake is treating it like a UK-style process: building a performance file and dismissing after warnings. That sequence matters here too, but it doesn't remove the Art. 245 obligation if the cause doesn't hold at tribunal. You can do everything right procedurally and still owe the full severance formula if the cause wasn't legally watertight. Budget for it either way.

A note from Tom Price-Daniel

Argentina's Art. 245 severance accrues from the first day of employment. There is no qualifying period, no minimum tenure, no phased-in protection.  
Dismiss without cause and the bill is immediate: 1 month of salary per year worked, plus notice, plus the liquidacion final within 4 days.  
Model the cost before you make the call.

Tom Price-Daniel · Co-founder, Teamed

## Related Argentina guides

- Hiring in Argentina, overviewparent
- [Employer of Record overview](/lp/employer-of-record)core
- [Pricing, Zero FX Fixed](/pricing)core
- [EOR vs Entity Crossover Calculator](https://www.teamed.global/tools/crossover-calculator)tool
- [Run the Employer Cost Calculator](https://www.teamed.global/tools/employer-cost)tool
- [Talk to an expert](https://www.teamed.global/contact)CTA

A note on this page.

This is a guide, not legal, tax, or accounting advice. Rules change and vary by jurisdiction, so verify current requirements with the relevant authorities, the Ministerio de Trabajo and ARCA (formerly AFIP) for Argentina, or speak to a qualified professional, before relying on any specific framework. Ley 27.802 (in force from 6 March 2026) amended notice periods and the severance cap calculation: confirm the current CCT rates for your sector before modelling any dismissal cost. The PPCE proportional thresholds under Ley 24.013 are company-size dependent and require specialist advice.