Garrido Law Firm

On June 29, Decree 576/2020 (the “Decree”) was published in the Official Gazette, extending the term of the “Social, Preventive and Mandatory Isolation” up to and including July 17, 2020, for the Metropolitan Area of Buenos Aires, the Province of Chaco, the Departments of General Roca of the Province of Río Negro and the Province of Neuquén, with the same limitations that have been in force since March 20, 2020 by order of Decree 297/2020. 

For the remaining cities and provinces, the Decree establishes the Social, Preventive and Mandatory Distancing, which implies that people can circulate, work and carry out their activities as long as they stay two meters away from each other. All the activities that reopen must be reorganized to guarantee compliance with the Social Distancing and the mandatory use of facemasks, hand hygiene, room ventilation and surface disinfection. In closed places, no more than 10 people may meet, complying with the distancing, and never exceeding the cap of occupation of 50% of the capacity of the respective place and following protocols for each activity, as applicable. Tourism activities may not be carried out, and the use of public transport will be allowed only for people who must carry out an essential activity. 

For the entire country, on-site classes have been suspended at all levels, anyone who is a suspected or confirmed case of COVID-19 may not circulate, certain people at risk are exempted from attending their workplace, and non-resident foreigners are prohibited from entering the country until July 17.

The Executive Power also extended, through Decree 577/2020, the suspension administrative deadlines, from June 29 to July 17, 2020, notwithstanding the validity of the acts effectively carried out or that are fulfilled, excepting all administrative procedures related to the health emergency by COVID-19 and the National Administration contracts that are processed under the "COMPR.AR" electronic system.

Through Decree 528/2020, the Executive Power extended the validity of the duplication of compensation for 180 days which had been originally instated on December 13, 2019 by Decree 34/2019. Through Decree 34/2019, an occupational emergency had been declared for a term of one hundred and eighty days, establishing that in the event of dismissals without just cause, the affected employee would be entitled to receive the duplication of the corresponding compensation in accordance with current legislation. This “duplication” does not apply to employees employed after December 13, 2019.

Additionally, Decree 487/2020 provides the prohibition of carrying out dismissals without just cause and dismissals and suspensions of employees on the grounds of lack or reduction of work and force majeure, for the term of 60 days, as from June 1, 2020 (i.e., until July 31, 2020). 

On June 27, 2020, Administrative Decision 1133/2020 and AFIP Resolution 4746 were published in the Official Gazette, extending the ATP Program and establishing new limits and requirements to access benefits. Registration for those who qualify is open until July 3, 2020. 

Through DECAD 1133/2020, the Chief of the Cabinet of Ministers extended the ATP Program according to the recommendations made by the Assessment and Monitoring Committee of the Emergency Assistance Program for Work and Production in Act No. 15, in accordance with the following parameters. 

• Reduction of employer contributions destined to the retirement plan corresponding to June salaries: For companies that carry out critically affected activities. 

• Postponement of employer contributions corresponding to June salaries: For companies that, regardless of the number of workers, carry out as their main activity any of the those included in the Committee Minutes as per the Administrative Decisions issued to date.

• Complementary salary June 2020:

✓ Critically affected companies: It will consist of 50% of the net remuneration received in April 2020, with a minimum of one Minimum Wage and a maximum of two. 

✓ Companies that conduct business in areas affected by the Social, Mandatory and Preventive Isolation: As in the prior case, it will consist of 50% of the net remuneration received in April 2020, with a minimum of one Minimum Wage and a maximum of two. 

✓ Companies that conduct business in areas affected by the Social, Mandatory and Preventive Distancing: It will consist of 50% of the net remuneration received in April 2020, with a minimum and maximum of a Minimum Living and Mobile Salary.

In all cases, remunerations above ARS 140,000 are excluded. The requirements remain the same as those that were established for prior stages of the Program. The comparison of the invoicing will be made with respect to the month of May 2019. Additionally, with respect to companies with more than eight hundred (800) workers as of 02/29/20, the fees, salaries or advance payments for the members of the board of directors must not be increased in more than five percent in pesos. Additional payments, bonuses or extraordinary fees related to the fulfillment of results are included within the same limitation. 

2. AFIP GR. 4746/2020

In accordance with the provisions of DECAD 1133/2020, the Argentine Tax Authority reopened the registration of beneficiaries until July 3, 2020, for all of those who seek access to the extension of the benefits of the ATP Program.