How to stay compliant

Employer-of-Record (EOR) in Argentina: Do You Need One?

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How to stay compliant

Employer-of-Record (EOR) in Argentina: Do You Need One?

So you want to hire someone in Argentina. Problem is, your company is located somewhere else.

If you’ve done some research, you’ve probably been told you should be using an Employer-of-Record (EOR). Why? Well, if your company isn’t located in Argentina, using an EOR can help you bypass the traditional obstacles to hiring full-time employees.

But there’s a catch: EOR solutions in Argentina are expensive—usually at least $500 per month per employee—and can take time to setup. And because you’re complying with a different set of labor laws, logistics and benefits can end up costing you lots of time and money. While they will save you time from setting up your own Argentinian entity, they’re rarely cheap or fast.

The good news? There’s another way to hire remote workers in Argentina, and it doesn’t involve forking out huge amounts of money for an EOR.

The solution: Hire your teammates in Argentina as contractors. If you’re hiring remotely and your teammates have autonomy, there’s a good chance you can make compliant contractor hires. You still have to use locally-compliant contracts, but the process is a lot easier, more affordable, and faster.

We built Thera to help you make contractor hires, in 150+ countries (like Argentina). So you can hire the people you want on your team, without paying thousands for an EOR. You can get set up in a couple of clicks—and you’ll only pay $49 per contractor per month.

It’s just as easy as it sounds. No catch. Here’s what Thera looks like vs. an EOR in Argentina:

Everything you should know about using an EOR in Argentina

Are you considering expanding your business to Argentina and are unsure about the legal and regulatory requirements for hiring employees? You're not alone. In this post, we'll break down everything you need to know about using an Employer of Record (EOR) in Argentina, including any legal or regulatory conditions specific to the country.

What is an EOR?

An EOR is a third-party company that acts as the employer of record for your employees in a foreign country. This means that the EOR takes care of all the legal and administrative tasks related to hiring and managing employees, including payroll, taxes, benefits, and compliance with local labor laws.

Why use an EOR in Argentina?

Argentina has complex labor laws and regulations that can be difficult for foreign companies to navigate. Using an EOR can help you comply with these laws and avoid any legal or financial risks. Additionally, an EOR can help you save time and money by handling all the administrative tasks related to hiring and managing employees, allowing you to focus on your core business activities.

Legal and regulatory conditions specific to Argentina

In Argentina, there are several legal and regulatory conditions that you need to be aware of when using an EOR. For example, all employees in Argentina are entitled to a minimum of 14 paid vacation days per year, and employers must contribute to a social security fund that provides benefits such as healthcare and retirement pensions. Additionally, there are strict regulations around terminating employees, including mandatory severance payments and notice periods.

Why hiring an independent contractor might be easier than using an EOR

While using an EOR can help you comply with local labor laws and regulations, it may not be the best option for every situation. For example, if you only need to hire a few employees in Argentina, it may be more cost-effective to hire independent contractors instead of using an EOR. Independent contractors are not considered employees, so you do not need to comply with the same labor laws and regulations. However, it's important to note that there are still legal and tax implications to consider when hiring independent contractors in Argentina.

What if I accidentally misclassify my contractors?

We’ve got two pieces of good news for you. For one, if you’re hiring remotely, it’s unlikely you’ll misclassify your contractors. Many of the things that qualify people as employees, such as company equipment and set working hours, don’t typically apply to remote work.

Still, it’s helpful to have the comfort of knowing you’re not at risk for misclassification. That’s why, at Thera, we’ve launched Misclassification Assurance: so you can hire contractors abroad, worry-free. Learn more about hiring with Thera below.

Hiring contractors? Thera can save you a ton of time

If you’re hiring contractors, you’re probably spending too much time on their payroll, contracts, and tax documents. Which is why we built Thera, which saves you 90% the time you spend on contractor paperwork each month.

With Thera, you can compliantly hire your contractors in 150+ countries, onboard them in minutes, and pay them all at once (in a click). It’s global contractor payroll, finally simplified.

Sound interesting? Click here to book a demo and see the platform firsthand

Run your global workforce on autopilot with Thera

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