Labor & Social Security Law Department Report | Administrative Decision No. 591/2020 issued by the Chief of the Cabinet of Ministers
Dear Sir or Madam,
On April 21, 2020, the Chief of the Cabinet of Ministers issued the Administrative Decision No. 591/2020 (the “Administrative Decision”), adopting the recommendations made in the Minutes No. 4 (the “Minutes”) issued by the Evaluation and Monitoring Committee (the “Committee”) of the Labor and Production Assistance Program (“ATP”).
In accordance with the Administrative Decision, the Committee has made a series of recommendations, which we will now explain, establishing the criteria to be adopted for the granting of the benefits stipulated in Decree No. 332/2020 amended by Decree No. 376/2020.
Regarding the Complementary Salary, the Committee recommended to grant that benefit with respect to the salaries accrued in April 2020 to the employers that meet the following conditions:
(i) That the activity of the employer as of March 12th, 2020, is among those established to adhere to ATP;
(ii) No nominal increase in invoicing should be recorded between March 12th and April 12th, 2020 with respect to the same period in 2019; and
(iii) Not to exceed 800 employees in relation to the number of employees as of February 29th, 2020.
(iv) With respect to those companies with more than 800 employees, their financial situation will be assessed on the basis of the information collected on the AFIP’s “ATP” website and any other information that may be deemed necessary; and it establishes that they will not be able to:
a) Distribute profits for the fiscal periods closed as of November 2019.
b) Repurchase shares directly or indirectly.
c) Acquire security titles (in Argentinean pesos) for their subsequent and immediate sale in foreign currency or their transfer in custody abroad.
d) Make disbursements of any kind to subjects directly or indirectly related to the beneficiary whose residence or domicile is in a non-cooperative jurisdiction or one with low or zero taxation.
For the purpose of calculating the number of personnel, the terminations that have occurred up to April 20th, 2020 must be deducted.
Furthermore, for the determination of the amount corresponding to the Complementary Salary, the Committee recommends considering the net salary of employees the amount equivalent to 83% of the gross remuneration earned in the month of February 2020.
If the company receives the benefit, the State must exclusively deposit it in a bank account with the employee’s name.
To arrange this assistance, AFIP and various agencies will cross-check financial and economic information of the employers and AFIP will provide a pre-liquidation, which must be subject to appropriate control by ANSES prior to making the disbursement.
Finally, the Administrative Decision recommends that, in addition to the benefits mentioned above, the activities established in the Annex of the Minutes shall be granted the reduction of employers’ contributions up to 95%.
Should you require any further information on this matter, please do not hesitate to contact us.
Alvaro J. Galli
Santiado H. Taboada