The judge of Labor Court No. 63, Raúl Ojeda, reinstated Article 55 of the Labor Modernization Law (27.802), which states that indemnification interests will be calculated using the Central Bank's (BCRA) passive rate as a base, but with a maximum ceiling equivalent to the Stabilization Coefficient (CER) + 3% annually. The goal is to update judicialized labor credits. According to the labor reform, this combination (CER + 3%) serves as the legal maximum limit for calculations in labor processes and aims to prevent the excessive capitalization of interests, which previously occurred with other mechanisms. This measure was included to give companies predictability about the final cost of labor lawsuits and to eliminate debts, as many entrepreneurs had pointed out that previous judicial interest rates made them "unpayable." "A new analysis of the issue leads me to revoke by contrary empire the measure adopted provisionally and to reiterate that the analysis of the merits is deferred until the final sentence," explained the judge in the recent ruling. Ojeda detailed that a study by the Academic Network of Judges of Labor of the Argentine Republic considered that the measure he took harmed workers, as there are several provinces where legal doctrine establishes debt update systems with a lesser impact than the one established in the new law. The reform also allows that, in certain judicial sentences, indemnifications can be paid in up to 12 installments for SMEs or individuals, and up to 6 installments for large firms or multinationals. From now on, the BCRA will enable an official calculator to apply these new parameters in labor lawsuits for indemnifications. Days ago, Ojeda had suspended 82 articles of this new legislation, an action that was celebrated by the General Confederation of Labor (CGT) after the sanction of the Labor Modernization Law on February 27, promoted by the government of President Javier Milei.
