I thought I would add a side comment regarding this. I received a letter from a former employee this week who is planning on suing me for wrongful termination (even though he quit). Funny enough, I was talking about it with a good friend and his comment to me was "You hire them in blanco - and they sue you. You hire them in negro - and they sue you. And in both cases, chances are you'll pay out. So why bother in blanco - it just winds up costing you more because you're out all those taxes on top of whatever the employees try to sue you for." And I'm starting to see his viewpoint.
The sad thing is - when we received the letter - my lawyer said "Look, I know it's bullshit and so does he. Just pay him a month or two worth of salary and it will go away quickly. Otherwise we'll have to go to court and it's going to take time and be expensive."
The system is set up so that even if you're 100% in the right - as we are - it's cheaper to pay off the employee than defend yourself. And that's just sad.
FWIW - we are going to court with him because I refuse to pay out. It's wrong and I will defend myself in court. And we will win. It will however cost me a large amount of time and money to defend myself over a completely friviolous lawsuit.
For me personally, the saddest thing is that because of this and after looking at the amount of money we paid out last year - the salaries, cargas sociales, private healthcare costs for employees, the cost of doing business here (legal fees, accounting fees, bank fees, etc, etc), IVA and then the 35% corp income tax on whatever profit we have left over - I've made the decision that it just makes no sense to have the business here in Argentina.
We'll starting to look for a new hub for LATAM operations. Right now Brasil, Chile and Uruguay are the top three. And you know -it makes me sad. Will my small business leaving affect anyone? No one except my 10 or so employees, my providers who will lose a client, etc. But it sucks because Argentina is my home and I truly wanted to have the project here because I believe(d) in this country. We went in with our eyes wide open, did all the due diligence and we are still make money at the end of the day. But its simply too hard here and when faced with a gov't that makes it almost impossible and very financially punitive to do the right thing, (some) employees that have a very distrustful relationship with their managers and are quick to sue, a banking system that is convoluted at best and a disaster at worst and constantly rising costs - well, it's just no longer worth it for us. There are too many better, safer, cheaper, more efficient options elsewhere in LATAM.
Anyway.. just wanted to share my at the moment very bitter viewpoint. And say that while I'm glad I did/do everything en blanco because at least I can defend myself - it really at the end of the day didn't help me one bit. It cost me time, it cost me money and in the end, there was no benefit.