Hello! I'm a local and a close relative is asking me about a job posting currently open on one of the most popular job portals in Argentina (I don't know if I can put the link here). Is it legal for a US-based law firm to offer a job to someone who lives outside the US and is not allowed to work in the US? I'm not familiar with the labor laws there, but I understand that this is not legal. Any opinions?
Obligatory
I'm not a lawyer/accountant:
Legal Answers
Note: What the law says, and what the reality is are two different things.
What does the law say about these types of jobs? They're
technically illegal (for the employers) in Argentina, because they are a dependency relationship masked as a contractor/monotributista relationship. The legal requirement for foreign companies is to create an Argentine division to manage, pay, and make social security benefit contributions for these types of employees, but of course this rarely, if ever, happens, especially since COVID, and the explosion in remote work amongst Argentines.
The area where your relative, and other Argentines or expats can get in trouble is via working totally en negro. There are some stupid people who work remotely as let's say devs, never pay a centavo to AFIP (now ARCA) and then when repatriating funds to Argentina, wonder why their MercadoPago or bank accounts gets locked and they have messages informing them that they have been banned by the platform or bank either for violating tax obligations, or due to a freeze imposed on their assets by the UIF
You have to pay ARCA something, and you now have up to 36K a year you can bring in from abroad without having to pesify, so it's getting better, but the other area people get in trouble with is not pesifying their dollars according to the BCRA rules when exceeding this limit. It's per calendar year, and increasing, but the requirement is still there.
Reality
This sort of work happens all the time with tens of thousands of people. I have a friend who works as a lawyer for a US company from here, and they haven't had any issues, but they, like everyone else, works in gris: they pay taxes to ARCA, they don't pesify over the previous and current limits 24K and 36K limits, and they haven't had any problems.
The government knows people do this, the only problem is as I mentioned, when people don't pay
any taxes. Even then, AFIP/ARCA has, as far as I know, never prosecuted anyone and has given people warnings and time to regularize their situation (i.e. become monotributistas). I do know of once case where the UIF has blacklisted someone from having bank accounts, but they admitted they were a serial tax evader and kept their paycheck in a bank account abroad anyways.
TL;DR: your relative needs to become a monotributista, pay some taxes to ARCA, and things should be fine.