If you’re considering hiring a contractor to support a specialized project, Argentina is a promising option for finding these individuals. With a diverse workforce equipped to address different industry needs, the country offers a range of opportunities for companies seeking qualified contractors.
Implement a strategic approach to hiring the right contractors for your company and support your business with the necessary expertise.
Hiring independent contractors in Argentina
Before you hire independent contractors to complete specific projects, you’ll need to know a few critical details about how the process works.
Independent contractors vs. full-time employees
The main difference between employees and contractors is how they function in your company. Rather than being a part of your organization, contractors serve as their own independent business providing a service to you. They are technically self-employed and do not receive most employee benefits.
Penalties for misclassification
You must correctly classify your contractors to protect your company from potential lawsuits, fines, and other penalties. If the Ministerio de Trabajo, Empleo y Seguridad Social (MTEySS), or the Administración Federal de Ingresos Públicos (AFIP) determines that your company has misclassified an employee as a contractor, you may be required to pay all outstanding social security contributions that the worker was entitled to over their duration of service.
How to hire independent contractors in Argentina
Implementing strategic hiring practices can help you find independent contractors who best fit your company’s project needs. To help them be most successful, provide the resources and support they require to fulfill their responsibilities. Whatever projects contractors are completing for your company, the hiring process should involve three key steps.
1. Carefully conduct interviews
Contractors in Argentina may offer specialized skillsets and project experience. As you consider potential professionals to hire, conduct your interactions as a business-to-business engagement. Talk with contractors in the interview process about relevant information such as projects they’ve completed in the past, available services they offer, and current certifications they hold.
2. Create a service agreement
You must ensure both parties understand the terms of your business agreement. Argentinian law does not require that you create a formal written contract, but it’s still best practice to validate your contracting terms in writing, including:
- Pay rates and arrangements
- Length of the contract
- Services the contractor will provide
- Termination conditions
3. Introduce necessities
Offering appropriate training can be foundational to equipping the contractor to complete projects. They will likely have extensive field experience, but they need some form of introduction to your company’s tools and protocols.
How to pay independent contractors in Argentina
Contractors based in Argentina must file their own taxes and pay for their own social security. You do not have an additional responsibility to cover benefits contributions for them. However, you are responsible for providing consistent compensation in Argentine Pesos, as agreed upon in your contract. Consider any restrictions regarding international payment processing.
Terminating independent contractors
Generally, a contractor’s working terms will conclude on a set date or operate on a project-by-project basis. Termination cases are typically straightforward because you and independent contractors are free to set your own terms for ending or extending your contract. At the same time, it’s best practice to detail termination protocol in your contract. That way, you can address any conflicts that might arise with a contractor without legal complications.
Turn to Globalization Partners when hiring independent contractors in Argentina
As an extension of Globalization Partners’ Global Employment Platform™, G-P Contractor allows companies to hire anyone, anywhere, for both short- and long-term projects. Whether you’re hiring employees or contractors, we streamline the process with a single solution for your global workforce. Contact us to learn more.
THIS INFORMATION IS FOR INFORMATIONAL PURPOSES ONLY AND DOES NOT CONSTITUTE LEGAL OR TAX ADVICE. You should always consult with and rely on your own legal and/or tax advisor(s). Globalization Partners does not provide legal or tax advice and the information is not tailored to the specific situations of your company or your workforce. Globalization Partners makes no representations or warranties concerning the accuracy, completeness or timeliness of this information. Globalization Partners shall have no liability arising out of, or in connection with, the information, including any loss caused by use of, or reliance on, the information.