The Executive published on Friday, December 13 the Emergency Executive Order (“EEO”) Nr. 34/19, which sets forth double severance for employment terminations without cause.

Its Grounds

The EEO explains that unemployment rate climbed to 10.6% this year, it declares the occupational emergency and decides this measure to stop employment crisis.

It is based on the precedent of Law 27,251, whereby Congress had attempted a similar measure in 2016, but it never became effective because former President Macri vetoed it on the spot.

Its Applicability Terms

The EEO becomes effective on the same date it was published, i.e., December 13th, 2019, and will remain effective for 180 days.

Its Scope

It applies to all employees terminated without cause within the EEO’s effective period.

Double severance applies to “all severance items stemming from the employment contract’s termination without cause.” This implies it does not only apply to severance for seniority, but also to the rest of the severance items resulting from termination.

The EEO does not apply to new hires, I.e., those engaged as of December 14th. This is to avoid the EEO’s deterrent effects for reactivation of the employment market.

Legislative Steps

The EEO must now be sent for review to the National Congress, whose Houses must rule whether they accept or reject the EEO.

Both Houses’ rejection of the EEO would represent the EEO’s abrogation. However, all rights acquired since the EEO’s issuance and until its effective rejection by the Congress will be enforceable.