Growing judicial crisis impacts employment in Argentina

The lack of implementation of Forensic Medical Corps is causing an alarming increase in labor lawsuits in Argentina, affecting the creation of quality jobs.


Growing judicial crisis impacts employment in Argentina

The population of workers in Argentina could double if we consider independents (both registered and unregistered) and informal wage earners. Since 2017, Law 27.348 established the obligation to create Forensic Medical Bodies (Cuerpo Médico Forense or CMF) by the Justice system, a measure that is still pending in most provinces, except for Mendoza which has made progress in its implementation. In the case of the Autonomous City of Buenos Aires, since it does not have its own labor jurisdiction, this responsibility falls on the Supreme Court of Justice of the Nation.

In Argentina, provinces like Buenos Aires, CABA, and Santa Fe lead in the number of labor lawsuits filed, with figures rising to 42,550, 19,206, and 13,968 cases respectively in the last year. In comparison to other countries, in 2023 Argentina registered 114.2 lawsuits per 10,000 covered workers, while countries like Spain and Chile barely reached 9.5 and 5.8 respectively.

The Union of Work Risk Insurers (UART) has urged the Judicial Powers of the provinces that adhered to the Law to comply with the constitution of the Forensic Medical Bodies with the aim of reducing the number of lawsuits to more reasonable levels and promoting the creation of quality jobs. According to UART, the delay in the implementation of these medical bodies has generated an alarming increase in work risk lawsuits, exceeding 100,000 annual cases.

In October, 11,851 new lawsuits were initiated, a 14.3% increase compared to the same month of the previous year. In the first ten months of the year, there is a 7.6% increase, surpassing the 25% growth registered in 2023. UART warns that it is expected that in the two remaining months of the year, another 22,000 cases will enter the system, which would lead to a closure of 2024 with around 128,000 new lawsuits.

The ART covers more than 10 million formal wage earners and 1.06 million employers, and at a time when the generation of formal employment is crucial for the country's economy, this high litigation becomes an obstacle to the creation of quality jobs. It is estimated that this year, the number of lawsuits will return to levels close to the 130,000 registered in 2017, the year in which the reform designed to solve this issue was sanctioned.

The Forensic Medical Bodies are presented as a fundamental tool to objectively assess damages in labor cases, while also unifying criteria between administrative and judicial instances. The implementation of this expert figure would not only contribute to reducing costs associated with lawsuits but would also provide equity for workers and efficiency in the insurance system.