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Argentina’s Labor Reform Hit by First Court Setback as Córdoba Judge Invalidates Article 55

The government is preparing an extraordinary appeal to seek a Supreme Court ruling on the law’s key mechanism for updating labor credits.

Overview

  • Judge Ricardo Giletta of Córdoba’s Labor Chamber struck down Article 55 for violating equality by giving different update formulas to pending and new labor cases.
  • Article 55 ties updates in new suits to inflation plus 3% annually, but for cases already filed uses the Central Bank passive rate with a floor set at 67% of the inflation-based calculation.
  • The Procuración del Tesoro plans an extraordinary federal appeal to move the dispute toward a definitive Supreme Court decision on the provision’s constitutionality.
  • The CGT appealed the rejection of its injunction against transferring the national labor jurisdiction to Buenos Aires City, and the Association of Magistrates signaled it will file its own challenge.
  • In the underlying case, the court upheld the worker’s dismissal as justified but ordered payment of days worked, year-end bonus, and proportional vacation due to missing employer receipts.