📖 Key articles of the Labor Contract Act (LCT)
Art. 245 — Severance for length of service ▾
Basis: highest normal and regular monthly pay in the last year. Excludes SAC.
One month's pay per year of service (or fraction over 3 months).
Cap: 3 times the average pay under the applicable CCT.
Vizzotti ruling (Supreme Court): the cap cannot reduce the basis below 67% of the actual salary.
Minimum: 2 months' salary.
Fraction of a year: a fraction over 3 months counts as a full year.
Art. 231–232 — Notice ▾
• No notice — probation period (art. 92 bis — Law 27,742): termination requires no notice and no severance
• 1 month — up to 5 years of service
• 2 months — more than 5 years
The notice period starts the day after notification (art. 233 LCT). If notice is not given, the employer pays its equivalent in lieu.
Art. 233 — Remainder of the month of dismissal ▾
If a dismissal without notice does not fall on the last day of the month, the employee is paid for the remaining days until month-end (salary / 30 × remaining days).
Art. 156 — Proportional vacation ▾
• Less than 5 years: 14 calendar days
• 5 to 10 years: 21 calendar days
• 10 to 20 years: 28 calendar days
• More than 20 years: 35 calendar days
Daily value: salary / 25. Proportional = vacation_days × days_worked_in_year / 365.
Art. 121–122 — Proportional SAC (13th-month salary) ▾
Half of the highest monthly pay of each semester, paid in June and December. On termination, the proportional amount for the current semester is paid.
SAC is not part of the art. 245 severance basis.
Art. 92 bis — Probation period ▾
Duration (Law 27,742 — in force since 07/09/2024):
• 6 months — general rule
• 8 months — if the CCT extends it, in companies with 6 to 100 employees
• 1 year — if the CCT extends it, in companies with up to 5 employees
Either party may end the relationship without stating a cause, without severance and without notice.
Key rules:
• An employer cannot hire the same employee on probation more than once.
• The period counts as length of service for all labor and social security purposes.
• The employer must register the employee from day one; otherwise it is deemed to have waived the probation period.
• The employee is entitled to occupational accident and illness coverage during the period.
Art. 103 bis — Social benefits (non-salary) ▾
They are not salary and are excluded from the severance and contribution basis:
• Canteen / meal services
• Food vouchers (up to the legal limit)
• Daycare and kindergarten
• Work clothing
• Scholarships and training courses
What is included in the art. 245 basis?
| Item | Included? | Legal basis |
|---|
| Base salary + CCT supplements | Yes | Art. 245 LCT |
| Regular commissions | Yes | Regularity — Supreme Court |
| Regular overtime | Yes | Regularity — Supreme Court |
| SAC / Aguinaldo | No | Art. 245 in fine |
| Travel expenses with receipts | No | Art. 106 LCT |
| Family allowances | No | Law 24,714 |
| Art. 103 bis benefits | No | Art. 103 bis LCT |
| Occasional overtime | Debated | Lack of regularity |