The Government establishes the schedule to bring the double severance to an end and does not extend the ban on dismissals

On December 24, 2021, Decree No. 886/2021 (the "Decree") was published in the Official Gazette, extending until June 30, 2022 the public emergency in occupational matters declared by Emergency Decree No. 34/19 and extended by similar Decrees Nos. 528/20, 961/20 and 39/21.

Within such framework, the Government establishes a progressive reduction of the duplication of severance payments. As from January 1, 2022, the employee dismissed without cause will be entitled to receive an increase of 75% of the severance, which shall be gradually reduced until its elimination effective as from July 1, 2022.

The Decree maintains the cap of AR$500,000 on the severance incremental, and it also keeps the universe of covered employees (i.e. those hired before December 13, 2019).

On the other hand, we highlight that the Decree does not extend the prohibition of dismissals. Consequently, except for new supervening regulations, as from January 1, 2022, the above-mentioned prohibition will cease to apply.