Employer of Record Argentina: Costs, Risks, IP, and Compliance

An Employer of Record (EOR) offers a foreign business a straightforward option to employ workers in Argentina before it is able to form a local entity. The EOR signs the agreement with the employee and registers their work relationship. It processes pay, provides mandatory benefits, and files required local paperwork. The client, in turn, controls the daily tasks the employee performs. Splitting these functions helps, but it does not protect a client from risks. As Argentina's current Labour Contract Law stands, the business that registers the worker is deemed the employer.

The user company remains solidarily liable for labour and social-security obligations accrued while the employee performs services for it. A buyer therefore must view any EOR both as a service company and as a regulated employment entity. Argentina's labour laws changed materially in 2024 and 2026. Law No. 27,742 set a new general trial period and created a narrow regime for collaborating with independent workers. Law No. 27,802 subsequently amended intermediary liability, severance formulas, contributions to sectoral bargaining agreements, and the financing structure for certain severance duties. This report reflects the statutes and regulations available as of 13 July 2026. We are offering business guidance only; nothing here substitutes for counsel on Argentina employment, tax, IP, or immigration matters.

How an Employer of Record Works in Argentina

An Argentine Employer of Record is a third-party entity that becomes the legal employer of a worker on behalf of a client company. In a full-service engagement, the EOR signs the employment contract, registers the employee with the Revenue and Customs Control Agency (ARCA), handles payroll processing and applicable income tax withholdings, pays social-security contributions, enrolls the employee in the obra social health plan and in the employer's work-accident insurer (ART), and applies the relevant convenio colectivo de trabajo (CCT) and worker category.

This set-up is often oversimplified in the market. Law No. 20,744, as amended, designates the entity that registers the employment relationship as the employer. Article 29 of that law also subjects the user company to joint liability for labour and social-security obligations accrued while the employee performed services for it.

The user company may ultimately claim reimbursement from the party primarily responsible, but a contract for services cannot strip the employee of statutory rights. For buyers, therefore, everything the EOR does should be traceable and verifiable. The contract must address who sets the relevant CCT and worker classification, when payroll must be funded, which filings the client receives, and how the parties handle errors, claims, or provider non-performance.

EOR, payroll, contractors, and a local entity

Commercial labels don't determine the legal status. First, determine if the work is employment or genuinely independent services. Second, determine if the client needs its own Argentine corporate presence.

EOR models can be useful when entering the market, building an initial team, or hiring before the local setup is complete. An Argentine entity becomes important when the company needs to invoice locally, manage assets, obtain licences, or maintain a durable operating presence. Headcount can affect the economics of the choice, but there is no general employee threshold that determines the legal structure.

Independent contracting requires a separate assessment. Law No. 27,742 allows an independent worker to collaborate with up to three other independent workers on a specific productive undertaking. However, Decree No. 847/2024 requires each person to remain genuinely independent and prohibits using the arrangement to disguise employment.

This three-person limit applies to that particular collaboration model; it is not a company-wide cap on contractors. Nor does hiring a fourth contractor automatically make that person an employee. The classification really depends on how the relationship operates in practice, including the contractor’s autonomy, the client’s control, and the worker’s integration into the business.

When an EOR makes sense

An EOR allows an overseas company to hire in Argentina before establishing its own local entity and payroll operation. This can be useful when testing the market, securing a particular candidate, or assembling an initial team before committing to a permanent local presence. It reduces the initial administrative burden while leaving the company free to establish an Argentine entity later if the operation grows.

There is no standard statutory cost or national timeframe for incorporation. An SA or SRL follows General Companies Law No. 19,550 and usually requires at least 25 percent of cash contributions to be paid up and evidenced by a deposit in an official bank. Costs and timing depend on the entity type, jurisdiction, and registry requirements.

There is no law requiring that any specific dollar figure be “frozen” at Banco Nación in the hands of a company for any standard time period.

The EOR turns much of the initial company administration and payroll management into a recurring service. It does not make hiring instant. The timing still depends on worker documentation, contract approval, CCT analysis, benefits and leave, the payroll cutoff, immigration status, and the EOR’s own internal controls. Ask for a dated onboarding schedule confirming that registration will be completed before work starts.

Services vary by provider. An EOR may offer:

• Full employment, payroll, statutory benefits, leave and terminations administration

• Payroll management and tax compliance for a company that already has an Argentine entity

• Contractor invoicing and tax document administration for workers who are truly autonomous

• Migrant worker residency and employer documents coordination

• Additional health, insurance and other benefits administration

• A planned transition from EOR employment to the client's future entity

This last point should be considered before signing. A later transition may require employee consent, recognition of seniority and accrued benefits, transfer of data and documents, and either a new employment arrangement or a termination process. Some providers offer that transition; others do not.

What an EOR Costs

Comparing EOR providers in Argentina is not as simple as comparing setup costs and monthly fees. Providers package their services in a variety of ways, and some costs may sit outside the advertised price. Ask for a complete breakdown showing:

• Gross salary and variable compensation

• Employer social security and health contributions

• Aguinaldo, paid vacation and CCT items

• ART, statutory insurance and supplementary benefits

• Service and deposit costs

• Invoice currency, exchange-rate methodology, and banking fees

• Immigration, equity or other specialist fees

• Severance pay and other termination and offboarding costs

A regional or country “burden percentage” can hide assumptions that matter in Argentina. The worker’s CCT and category, salary scale, employer classification, payment structure, benefits, and schedule can all change the result. Building the estimate line by line takes longer, but it allows the buyer to verify the basis for every cost.

The currency terms need to be just as explicit. Wage currency, indexation, invoicing currency, the exchange-rate source and conversion date, the payment channel, and responsibility for exchange differences are all separate decisions. There are no automatic exemptions from Argentine wage, tax, banking, or foreign-exchange rules with an EOR. Dollar-linked terms should be tailored to the specific worker and payment method.

Ask the provider how it recalculates costs when salaries, CCT pay scales, benefits, exchange rates, or termination instructions change. The quote should also explain what happens if payroll is funded late. This makes it easier to distinguish predictable employment costs from provider-controlled charges.

How the Employment Process Works

The EOR relationship is an ongoing operating process rather than a one-time hiring transaction.

1. Scope the role and legal relationship. The client supplies the role, duties, work location, schedule, compensation, and reporting structure. The provider identifies the likely CCT and category and flags facts inconsistent with the proposed model.

2. Agree the services and employment documents. The parties define funding, reporting, audit rights, claims handling, confidentiality, IP, benefits, and transition terms. The EOR prepares the local employment agreement.

3. Register before work begins. To register employees, the EOR completes the applicable ARCA employment registration and arranges social-security, health, and occupational-risk coverage. The client should receive evidence of registration.

4. Run and reconcile payroll. The EOR issues the recibo de sueldo, files F.931, remits amounts due, and accounts for aguinaldo, leave, CCT items, deductions, and ART. The client funds payroll and reviews the reconciliation and exceptions.

5. Manage changes and offboarding. The provider administers leave, salary and CCT updates, payroll changes, and employment documentation. It handles the termination procedures and prepares the calculation and documents, but the client makes the termination decision and funds the resulting costs.

The trial period does not remove those operating duties. Article 92 bis provides a six-month general trial period for an indefinite employment contract. A CCT may extend it to eight months for employers with six to 100 workers and to one year for employers with up to five workers. These rules came from Law No. 27,742, not the 2026 reform, and the worker must be registered from the first day for the employer to rely on the trial period.

If the employee is a foreign national, some providers coordinate the residence and employer-document process under Law No. 25,871. Argentina's official temporary-residence process for migrant workers requires specified worker documents, employer evidence, and a pre-contract containing information such as the role, hours, duration, location, and remuneration. Nationality and residence status affect the route, so there is no universal immigration timeline.

The Legal and Payroll Issues Buyers Need to Understand

The EOR should handle these requirements, but the client needs enough visibility to budget for and audit them.

Employment Contracts, Registration, and Worker Classification

Law No. 27,742 repealed certain indemnity increases connected with deficient registration; it did not remove the duty to register workers or all related sanctions. Argentina's general labour-infringement regime under Law No. 25,212 continues to classify missing or defective registration as an offence, and unpaid contributions, interest, and applicable penalties can still be collected.

Article 29 does not govern every multi-company arrangement. Article 30 contains a separate document-control rule for qualifying subcontracting, while Article 31 limits related-company solidarity to cases involving fraudulent manoeuvres. The contract and audit plan need to reflect the provision that applies to the actual arrangement.

Managing a contractor won't resolve a relationship that is actually an employer-employee one. Each role should be analysed based on the level of direction and integration, the worker's autonomy, the economic structure of the arrangement, and the contractual duty to deliver a product or service. The provider should not hesitate to decline a contractor relationship if the facts point towards employment.

Payroll, Employee Benefits, Working Time, and Leave

Salaries, items included in the CCT, overtime, paid leaves, and the statutory aguinaldo all fall under payroll. Aguinaldo is a statutory supplementary annual salary paid in two installments, due June 30 and December 18. Each installment is calculated at 50% of the highest monthly remuneration earned within the corresponding semester under Law No. 23,041 and Law No. 27,073, and is prorated for those working for only part of a semester.

In accordance with working-time laws in Argentina, hours are generally limited to 8 hours per day and 48 hours per week. Overtime carries a 50% premium on ordinary days and a 100% premium on Saturdays after 1 PM, Sundays, and official holidays. The EOR can determine the overtime rate based on correct hours worked submitted by the client.

Minimum paid vacation entitlement starts at 14 calendar days and increases to 35 calendar days after more than 20 years of service:

Collective Bargaining Agreements and Job Classification

Under Law No. 27,802, contributions and payments established by a CCT in favour of worker associations, applicable to covered members and non-members, cannot exceed 2% of employee remuneration. Union membership dues and special benefits linked to membership fall outside that cap. The EOR should be able to explain the legal basis for each payment instead of treating every item as a generic union deduction.

Termination and the Fondo de Asistencia Laboral

When an employer dismisses an employee without cause after the probationary period, revised Article 245 provides one month's salary for each year of service or fraction greater than three months. The amount is based on the best normal and habitual monthly remuneration earned within the year before termination, or the actual period worked if shorter than a year.

However, the calculation base may not exceed three times the average monthly remuneration established by the corresponding CCT, excluding seniority. Applying this cap cannot reduce the worker's calculated remuneration base below 67%. The statutory Article 245 compensation cannot be less than one month of salary determined by the statutory method. Notice, accrued remuneration and vacation, protected employee status, documentation, interest, and procedural requirements may add to the final cost.

Law No. 27,802 established the "Fondo de Asistencia Laboral" (FAL), whose launch was delayed until 1 November 2026 by Decree No. 408/2026. The monthly contribution is 1% of the SIPA base for large companies and 2.5% for MiPyMEs (small and medium-sized enterprises). Employers qualifying for the FAL receive a corresponding reduction in certain employer social-security contributions, subject to exclusions. The contribution should not simply be added to the cost model as an unexplained percentage.

Eligibility is limited. The worker must be registered for at least 12 months prior to termination, and the Fund applies a waiting period of no less than six full monthly contribution periods. While FAL may cover specified termination obligations, a lack of funding in the Fund does not diminish the employer's statutory responsibility to fully compensate the employee.

IP and Data Protection

Argentina's Law No. 25,036 governs IP rights regarding software developed by workers, but the EOR arrangement adds another contractual layer between the worker and the end client. Consequently, the employment contract and the client's service agreement with the EOR must align on confidentiality, invention rights, software development, documentation, background IP, and the assignment or licensing of deliverables to the client. A generic EOR clause may not meet the client's product, investor, or customer requirements. Material or regulated work should undergo a specific review by Argentine IP counsel.

Similar considerations apply to personal data under Law No. 25,326. Payroll, benefits, immigration, and performance administration can place confidential employee information in the databases of the EOR and its subprocessors. The contract must specify authorised use, security standards, breach notification, data retention, disposal, cross-border transfers, and the documentation the client can expect.

Evaluating an EOR Provider

The provider's legal reasoning is important, but so is its operational evidence.

What EOR Compliance Support Should Include

Before executing an agreement, the client should ask the EOR to demonstrate:

1. The identity of the proposed employer entity, its registration details, applicable collective bargaining agreements, the proposed job category, and the corresponding salary grade

2. Its internal procedures for rejecting disguised employment relationships

3. A sample payroll breakdown separating gross compensation, statutory employee withholdings, employer-side contributions, benefits, and the provider's management fee

4. Proof of registration, tax filings, reconciliation statements, and the client's right to audit

5. The interplay between exposure under Article 29, indemnity terms, coverage limits, and claims administration

6. A projection of severance liabilities identifying the Article 245 calculation base, CCT cap, 67% floor, one-month minimum, notice periods, accrued obligations, and the model's underlying assumptions

7. Matching confidentiality and IP clauses in the employment and services agreements

8. Currencies used for payroll and invoicing, currency conversion mechanics, banking procedures, and the party bearing exchange rate risk

9. A wind-down strategy addressing consent requirements, continuity of tenure, transfer of accrued entitlements, data migration, and potential exit costs

Financial due diligence is essential, as provider insolvency can disrupt payroll, statutory filings, and record-keeping while leaving the user company responsible for its legal obligations.

The client should also test response times, establish who handles escalations, confirm its data-access rights, and understand how mistakes are corrected after payroll closes. The final decision comes down to three questions:

• Is the engagement truly an employment relationship and not an independent service?

• Does the company require the establishment of a corporate entity within Argentina at this time?

• Can the selected EOR provide proof of adequate registration, timely payroll, financial sufficiency, proper records, and an orderly claims process?

If the work is employment, the client lacks an entity, and the provider passes this review, an EOR could be a practical temporary or permanent solution. However, if the company must issue local invoices, obtain licences, hold assets, or operate continuously on the ground, direct entity formation may be the better option.