Unregistered Employment. Evolution of Case Law

Labour Department - Beretta Kahale Godoy

According to the data distributed last September 27, by the Institute of Statistics and Census ("INDEC"), 4.8 million Argentine workers are not formally registered by their employers. Although the country’s average was reduced by 0.2%, (from 47.5% to 47.3%), in Buenos Aires this figure increased in relation to the first quarter of 2005, from 36,1% to 38,9%¹. These figures are even higher if we include partial or defective registration cases.

Argentine labor law provides for different mechanisms to prevent unregistered employment, but the extension of liability to the managers and members of companies in the presence of unregistered payments led to a significant jurisprudence and case law discussion, particularly with regard to the construction of Sections 54 (3rd paragraph), 59 and 274 of the Argentine Commercial Companies Law No. 19550 ("LSC").