Working for Two Companies with the Same Owner: Joint and Several Liability
Working for related corporate entities under common ownership authorizes enforcing joint and several liability against both companies and directors under Art. 31 LCT.
Did you work for affiliated companies attempting to dodge liabilities?
Enforce joint liability against the entire corporate group with Lead Attorney Dr. Guillermo Conti:
Essential Legal Distinctions
- Joint & Several Liability (Art. 31): All affiliated entities are 100% financially liable for the severance award.
- Direct Claims Against Officers: Corporate directors face personal asset attachment for insolvency maneuvers.
- Joint Summons at SECLO: All companies are summoned simultaneously to the conciliation table.
1. Economic Group Joint Liability (Article 31 LCT)
Article 31 of the Employment Contracts Act establishes that when related corporate entities form a permanent economic group involving fraudulent schemes, they are jointly and severally liable for all employee wage and severance obligations.
2. Piercing the Corporate Veil to Reach Officers (Law 19,550)
When shell companies attempt to evade severance liabilities, Argentine labor courts pierce the corporate veil under Articles 54, 59, and 274 of Corporate Law 19,550, attaching judgment liens directly onto the personal assets of corporate officers and directors.
Frequently Asked Questions
Can I sue both companies if they share the same owner?
Yes. Shared duties or common corporate control triggers joint and several liability under Article 31 LCT.
What if one entity lacks assets?
Joint judgments allow executing 100% of the award against the solvent corporate entity or against directors personally.
How is common corporate ownership proven?
Through corporate registry searches (IGJ), shared addresses, inter-company banking, and witness testimony.
Must all entities be summoned to SECLO?
Yes. All corporate entities must be included in the initial SECLO filing to secure joint procedural liability.