Lawsuits Over Work-Related Risks Rise in Argentina, Driven by Key Jurisdictions

The number of labor lawsuits filed against work-risk insurance companies (ART) in Argentina saw a 2% year-on-year increase between January and July, according to a statement from the Union of ART. During this period, 72,525 lawsuits were initiated, reinforcing projections that the year will conclude with approximately 138,000 new claims.

While July saw a slight decrease in new cases compared to June, attributed to judicial recess, the overall trend indicates a persistent high volume of litigation. Over the last 12 months, 135,400 notifications were recorded, described as a "disproportionate volume." The increase in cases is notably concentrated in specific jurisdictions. Santa Fe province experienced an 18% surge compared to the previous year, while Buenos Aires province and the City of Buenos Aires each saw a 3% rise.

In contrast, the rest of the country registered a 9% decrease in the number of cases. The report highlights the importance of implementing a forensic medical body, as mandated by a 2017 law, to evaluate damages from occupational accidents or illnesses. This body's role is crucial in determining eligibility and the amount of compensation, aiming to reduce judicial intervention.

Despite agreements signed with provinces like Santa Fe, San Luis, and Jujuy to establish these medical bodies, full implementation has faced challenges. In Santa Fe, a medical body was formed but later expanded and is currently not operational. Authorities are in discussions with several other provinces and the City of Buenos Aires to fulfill this legal requirement. The high rate of litigation significantly impacts employer costs, particularly for small and medium-sized businesses, and consequently affects employment.