Argentina's Labor Reform Articles Reinstated by Appeals Court

In a significant legal development, Argentina's Chamber of Labor Appeals has breathed new life into a contentious labor reform, reinstating over 80 articles that had been previously halted by a lower court's injunction. The Chamber's decision to grant suspensive effect to the national government's appeal means these provisions are now back in force, pending a final resolution on the merits of the case. This move effectively overrides the initial ruling that had put a significant portion of the reform on hold for three weeks.

The suspended articles covered a wide range of labor regulations, including limitations on the right to strike, changes to severance pay calculations that excluded bonuses and vacation pay, the establishment of a "bank of hours," and modifications to vacation fragmentation. The lower court's injunction had also paused the transfer of national labor courts to the city of Buenos Aires. However, the Chamber of Labor Appeals found that the preliminary injunction's broad suspension of legal provisions warranted the suspensive effect on the appeal itself.

With the reinstatement, several key changes are now active. These include the stipulation that salaries must be paid in legal tender, with the introduction of a "dynamic salary" concept that can be adjusted based on collective bargaining agreements or employer decisions related to merit or productivity. The reform also introduces a cap on the base remuneration for calculating certain benefits and mandates that indemnities be updated by inflation plus an annual 3% increase, with provisions for installment payments for large companies and SMEs. Furthermore, Labor Assistance Funds (FAL) are being established through mandatory employer contributions, intended as specific, unattachable accounts.

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La medida cautelar [presentada por la CGT] suspendió la vigencia de una gran cantidad de artículos de una ley del Congreso y esta circunstancia torna aplicable la norma antes aludida.