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First Ruling Against Labor Reform: Justice Rejected the Cap on Compensation

Summary by Infobae
A Cordoban judge annulled the mechanism that established the recalculation of sums in labour disputes initiated prior to the regulatory change and determined that the previous system to update the amounts should be applied.

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A Cordoban judge annulled the mechanism that established the recalculation of sums in labour disputes initiated prior to the regulatory change and determined that the previous system to update the amounts should be applied.

·Buenos Aires, Argentina
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The government will appeal the ruling of the Cordoban Justice that suspended the article of the labor reform that set limits on compensation, with the aim of bringing the debate to the Supreme Court and achieving constitutional validity. The point in question is article 55 of the so-called "Labour Modernization Law", which establishes a recalculation mechanism to update labor credits in trials that were pending prior to the approval of the initi…

The judge of the First Chamber of the Chamber of Labor of Cordoba, Ricardo Giletta, declared unconstitutional the article 55 of the labor reform that advances on labor trials and reduces between 20% and 60% the compensation corresponding to the workers dismissed. The mentioned article establishes how the debts are updated in ongoing labor trials, using interests of the Central Bank (BCRA), but with a maximum limit of inflation + 3% per year and …

A labor judge in Córdoba declared one of the articles of the so-called Labor Modernization Law unconstitutional in a legal case concerning the calculation of severance pay for a worker's dismissal a decade ago. The decision was made by Judge Ricardo Giletta, who ruled that Article 55 of the labor reform violates constitutional principles by establishing a new formula for calculating interest on labor claims related to dismissals that occurred be…

This is a key point of the initiative that aims to moriger up-to-date lay-offs payments.

·Buenos Aires, Argentina
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A labor judge in Córdoba declared unconstitutional article 55 of the labor reform, considering that the mechanism for updating claims in pending trials could significantly reduce what workers receive. On Thursday, the labor reform law had its first ruling against it, which came through a labor judge in Córdoba who declared the unconstitutionality of article 55 of the law, which regulates the way labor claims should be updated in trials that were…

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Ámbito broke the news in Argentina on Thursday, March 12, 2026.
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