San Juan court increases severance payout 27-fold via labor reform

A labor court ruling in San Juan, Argentina, has significantly increased a severance payment from approximately 5.8 million pesos to 158 million pesos. The decision by the second chamber of the San Juan Labor Court applied Article 55 of Law 27.802, known as the Labor Reform, to a dismissal case dating back to 2014.

Judges Susana Raed and Germán Parra determined that the new law is of public order and applies immediately to ongoing legal processes that do not yet have a final sentence. This interpretation allows for the recalculation of interests in pending labor lawsuits. The companies involved have appealed the decision to the local Court of Justice.