The Supreme Court Puts the Brakes on the Update of Labor Credits
It revoked a ruling issued by Room IX of the National Chamber of Labor Appeals that applied the annual compounding of interest calculated at an active interest rate.
In a ruling issued today, the highest court considered that “interest is not owed on interest”, that the annual compounding of interest “entails a disproportionate financial consequence”, generates “enrichment without just cause” of labor creditors and produces an unreasonable distortion that threatens legal certainty.
It is a significant ruling that invalidates the system for updating labor credits adopted by Act 2764 of the National Chamber of Labor Appeals in September 2022 and which significantly multiplied labor liabilities for companies.
CNT N° 23403/2016/1/RH1 “Oliva, Fabio Omar v COMA S.A. s/ dismissal”, 2/29/24.
This insight is a brief comment on legal news in Argentina; it does not purport to be an exhaustive analysis or to provide legal advice.