To conclude, both an “Employee” and an “Independent Contractor” is submitted to a specific regulation.
The Employee engaged in a subordinate relationship with the Employer will actually be given more advantages and protection while the Independent Contractor’s regime, although much more flexible is undoubtedly less favourable in some ways. Due to the lack of a legal framework of the Independent Contractor, it is a preferred option in particular for foreign companies with no local presence in Argentina.
Nevertheless, without prior and qualified advice the risk of misclassifying an independent contractor relationship into a subordination relationship is high and the consequences are severe. In view of that, it is important to bear in mind: i) the special protective characteristic of the Argentinean labor regulation; and ii) the subordinations notes which are the key element to construct and prove the statute of Employee to minimize the risk of misclassification of the Independent Contractor.