Marval Legal Pulse - Labor modernization: changes to territorial jurisdiction in labor disputes

In this edition of Marval Legal Pulse, we analyze one of the procedural changes introduced by Argentina’s labor modernization reform, aimed at reducing labor litigation.

Throughout the episode, we discuss the amendments to the rules governing territorial jurisdiction in labor disputes before the National Labor Courts, in a context where the volume and characteristics of such litigation have been widely debated from both legal and economic perspectives.
 

Key aspects include:

• The modification of territorial jurisdiction criteria, limiting the available options for filing claims.
• The elimination of the possibility to file claims in the domicile of any co-defendant, restricting jurisdiction to the place of work, the place where the employment contract was executed, or the employer’s domicile.
• The reduction of forum selection flexibility for employees, mitigating forum shopping practices.
• The potential impact on reducing court congestion and increasing predictability in labor litigation.
   

The episode also explores the practical implications of this change in light of historically broad interpretations of liability extension and litigation strategies that have shaped labor disputes in Argentina.

This episode features Guillermo Osorio, partner in the Labor & Employment Department, and Cecilia Avendaño, member of Marval’s labor litigation team, who share their insights on the scope and effects of this reform.