Necessity and Urgency Decree No. 332/2020 of the National Executive Branch: Program of Emergency Assistance to Labor and Production.
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Labor & Social Security Law Department Report | Necessity and Urgency Decree No. 332/2020 of the National Executive Branch: Program of Emergency Assistance to Labor and Production.
On April 1st, 2020 The President issued the Necessity and Urgency Decree (“DNU“) No. 332/220 creating the Program of Emergency Assistance to Labor and Production in the framework of the health emergency decreed by DNU No. 260/2020.
The DNU No. 332/2020 decrees:
I. Establishing the Emergency Labor and Production Assistance Program for employers and workers affected by the health emergency to obtain one or more benefits stipulated in this DNU.
II. Benefits:
a) Argentine Integrated Social Security System
1- Postponement of the due dates for the payment of the employer’s contributions to the Argentine Integrated Social Security System. The AFIP will provide special maturities and payment facilities.
2- Reduction of up to 95% of the employer contributions to the Argentine Integrated Social Security System accrued during the month of April, 2020.
This benefit will be for those employers who, as of February 29th, 2020, will not exceed 60 workers in a dependent relationship.
Employers with more than 60 dependent employees as of February 29th, 2020, must initiate a Crisis Prevention Procedure (“CPP“) in order to receive this benefit.
b) Compensatory Salary Allocation:
The allocation shall consist of a sum paid by the State to the workers in a relationship of dependence on the private sector included in the negotiation regime and for companies with up to 100 workers:
1- Employers with up to 25 workers, 100% of the gross salary is established, with a maximum value of 1 minimum vital and mobile salary in force.
2- Employers of 26 to 6) workers, 100% of the gross salary is established, with a maximum value of up to 75% of the minimum vital and mobile salary in force.
3- Employers of 61 to 100 workers, 100% of the gross salary is established, with a maximum value of up to 50% of the minimum vital and mobile salary in force.
This allocation is considered on account of the payment of the salaries of the personnel affected, with the employers having to pay the remaining balance until these salaries are completed. The remaining balance is considered remuneration for all legal and conventional purposes.
Employers must withhold the part corresponding to the contributions to the Argentine Integrated Social Security System and social work and the contribution to the INSSJP.
Finally, in the event that employers carry out suspensions of labor benefits, the amount of the allocation shall be reduced by 25% and may be considered as part of the non-remunerative benefit defined in the terms of section 223 bis of the LCT.
c) REPRO Emergency Health Assistance
Non-contributory amount with respect to the Argentine Integrated Social Security System paid by the State for workers in a dependent relationship with the private sector, included in the collective bargaining regime, for those employers who exceed 100 workers.
The benefit per worker will have a minimum of AR$ 6,000 and a maximum of AR$ 10,000.
A new differentiated and simplified Productive Recovery Program will be established, maintaining Resolution No. 25 dated September 28th, 2018 of the Ministry of Labor and Employment as soon as it is compatible.
d) Comprehensive system of unemployment benefits for workers who meet the requirements of Laws No. 24,013 and 25,371.
The amounts of unemployment benefits are to be increased to a minimum of $6,000 and a maximum of $10,000 for a period of 60 days.
III. To apply for the above-mentioned benefits (a), (b) and (c), the subjects covered by the DNU must comply with one or more of the following criteria:
a) They are critically affected economic activities in the geographical areas where they are carried out.
b) They have a relevant number of confirmed workers with COVID-19 or in obligatory isolation or with a work dispensation for being in a risk group or family care obligations related to COVID-19.
c) Demonstrate a substantial reduction in sales after March 20th, 2020.
IV. They will not be eligible for benefits under the DNU:
a) Companies that carry out essential activities and services in accordance with Decree No. 297/2020, Article 6, Administrative Decision No. 429/20 and its possible extensions.
b) Those who do not give concrete indications that allow inferring a representative decrease of their activity level.
V. The Chief of Cabinet will establish the objective criteria, activity sectors and other elements that will allow to determine the assistance established in the DNU.
VI. Employers who have received benefits from the DNU shall prove to AFIP: (i) the list of personnel received and (ii) their assignment to the activities carried out.
The Ministry of Labor, Employment and Social Security will carry out the following tasks:
a) Consider the information and documentation sent by the company.
b) To gather additional data that will allow the extension and/or verification of those initially provided, requesting the documentation it deems necessary.
c) It may arrange for evaluation visits to be made to the establishment’s headquarters, for the purpose of ratifying and/or rectifying conclusions.
VII. The Ministry of Labor, Employment and Social Security may issue operating rules for the effective application of the DNU.
VIII. The DNU shall be applicable to the economic results of companies that occurred between March 20th and April 30th, 2020, inclusive.
IX. It entered into force on April 1st, 2020.
Should you require any further information on this matter, please do not hesitate to contact us.
Álvaro J. Galli
Santiago Taboada