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ECONOMY | 26-11-2021 01:37

Argentina's government won't extend ban on lay-offs into next year

Government will not extend double severance rule and ban on dismissals beyond end of year, says Labour Minister Claudio Moroni.

Argentina’s government believes that it is "highly probable" that its decrees ordering double severance and a ban on dismissals will not be extended into the new year, given that the economic situation is "returning to normal with Argentina growing," according to Labour Minister Claudio Moroni.

"They were two extraordinary measures for an extraordinary situation," said Moroni, speaking on Thursday at a public event.

"When we can measure the situation in December, which will be published in February, we will be recovering the totality of the jobs lost during the pandemic at the very least,” the minister said during a lecture at the Escuela Técnica Roberto Rocca of the Techint Group in Campana.

“There will be sectors like manufacturing and construction running employment levels above those before the pandemic," he added.

The ordering of double severance payments to dismissed workers was among the first measures adopted by the Frente de Todos government upon taking office in late 2019 – originally announced for six months, the rule has been extended through to the end of this year due to the coronavirus pandemic, although the last time double severance was prolonged, a cap of half a million pesos extra was set.

The ban on dismissals without just cause began from the start of quarantine and remains in force until now. Last month, President Alberto Fernández hinted that neither measure would be extended.

"The exceptional decisions we took [the ban on dismissals and double severance] should be understood as such. They were applied at an exceptional moment and they will not be sustained in time," said the president.



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