Marval Legal Pulse - Labor Reform: Joint and Several Liability Regime

In this edition of Marval Legal Pulse, we analyze one of the changes introduced by the labor modernization law regarding joint liability, aimed at redefining the scope of liability extension within labor relationships.

Throughout the episode, we address the changes to the joint liability regime under the Argentine Labor Contract Law, in a context where the extension of liability to third parties and corporate groups has been subject to both legal and economic debate.
 

Among the main aspects, the following stand out:

• The limitation of the user company’s liability exclusively to the period during which the employee provided services in its favor.
• The introduction of the possibility to seek recourse against the primary employer, providing a mechanism for allocation among co-defendants.
• The requirement that outsourced activities be carried out within the establishment as a condition for extending liability.
• The relaxation of the user employer’s control obligations, who may be exempt from liability by requesting certain documentation, even if such documentation proves to be inaccurate.

Additionally, the episode analyzes the practical implications of this change within a system where broad interpretations of joint liability and procedural strategies have historically played a central role in labor litigation dynamics in Argentina.