Pay in Lieu of Notice and Month Integration Pay in Argentina
Pay in lieu of notice compensates the lack of advance dismissal notice and equals 15 days, 1 month, or 2 months of salary depending on seniority, plus calendar month integration pay.
Were you dismissed without notice?
Have your notice and integration pay calculated by Dr. Guillermo Conti:
Essential Legal Distinctions
- Notice Pay is NOT Seniority Severance: Notice pay remedies lack of advance warning; Art. 245 compensates service length.
- Notice Pay Accrues Statutory Bonus: Under CNAT binding case law, omitted notice triggers an 8.33% bonus add-on.
- Integration does not apply during probation: Month integration is legally excluded during probationary terms under Art. 233 LCT.
1. Statutory Notice Periods under Argentine Law (Art. 231 LCT)
Article 231 of the Employment Contracts Act mandates written notice prior to termination according to seniority:
- 15 days: During the statutory probationary period.
- 1 month: For employees with seniority under 5 years.
- 2 months: For employees with seniority exceeding 5 years.
2. Pay in Lieu of Notice and Month Integration Pay
If notice is omitted, the employer must disburse pay in lieu of notice (Art. 232 LCT) plus the accrued 1/12th statutory bonus. In addition, when dismissal occurs mid-month, the employer must pay the remaining days to complete the calendar month (Month Integration, Art. 233 LCT).
Frequently Asked Questions
How much notice pay is owed after 5 years of service?
Two full months of gross regular wages, plus one-twelfth (8.33%) for statutory bonus accrual.
Can I take time off to interview if given working notice?
Yes. Employees are entitled to 2 paid hours daily or one full day weekly to search for employment (Article 237 LCT).
Does mid-month dismissal trigger integration pay?
Yes. All days from the dismissal date until the end of the calendar month must be paid under Article 233 LCT.
Is notice pay subject to income tax?
No. Statutory severance items upon dismissal are exempt from income tax withholding.