Coercive, unfair or deceptive recruitment Economic sanctions Minimum wage
Under these provisions, temporary services employment agencies must establish an escrow account and must deposit an amount equivalent to 100 minimum wages.
Additionally, companies must provide a guarantee, in favour of the Ministry of Labour, of at least three times the amount mentioned above. This guarantee may be granted through: a) cash deposit, securities or federal government securities; b) bank guarantee or surety insurance policy; or c) establishment of a mortgage in favour of the Ministry of Labour.
These guarantees are required in order to ensure that employees will not be exploited and will be paid in due time and in the lawful form, as provided in the different laws and decrees.
Article 20 sets out the applicable penalties for failing to comply with the terms of the Decree, such as fines, loss of permit to operate or closure.
Law / Argentina / Decree 1,694/2006 – Temporary Services Employment Agencies Reg
The Decree regulates agencies that exist for the exclusive purpose of supplying specialized personnel to fulfil temporary roles in other companies, establishing safeguards and social security regulations to avoid labour fraud. The Decree establishes limits and exceptions to the situations in which these agencies may provide personnel to other companies and the amount of time they may have personnel out of work per calendar year.