The amendment to Art. 23 of Argentina’s Labor Law (by Law 27.804), gives companies clearer ground when hiring freelancers, but it does not cover sham contracting or labor fraud (Art. 14 LCT remains fully active).
If operational daily reality shows technical, economic, or legal dependence, courts will rule it a standard employment relationship. Proactive alignment between HR and Compliance is essential.
Corporate Audit Checklist
1. Documentation & Accounting Audit
- Invoicing & Tax Registration: Confirm all contractors issue valid invoices (active CAE, proper ARCA registration) prior to payment.
- 100% Bank Transfers: Ensure all contractor payments are processed exclusively through official corporate bank accounts.
- Solid Service Agreements: Audit all active agreements to ensure properly drafted Independent Service/Project Contracts are in place.
2. Operational Audit (Preventing Misclassification Risk)
- ⏰ Schedule & Work Autonomy: Keep engagements deliverable-focused with no mandatory work hours or clock-in systems.
- No Direct Direction or Discipline: Independent experts receive project goals, never direct managerial supervision or disciplinary actions.
- Own Equipment & Tools: Confirm contractors supply their own tools, software, and operational setup.
- Non-Exclusivity: Ensure contractors remain free to serve other clients simultaneously.
Legal certainty isn’t assumed; it’s built and audited every day.
How is your organization adapting its contractor management processes?