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Buenos Aires High Court Moves to Set Single Index for Severance and Penalty Updates

The move aims to end years of divergent adjustments in national labor rulings.

Overview

  • The city’s Superior Court (TSJ) is drafting a precedent to standardize updates in dismissal awards across thousands of pending cases.
  • Judges are weighing three formulas: IPC plus a 3% pure rate, the wage-based RIPTE, or a hybrid with a floor and ceiling around inflation.
  • Court leaders aim for a strong, preferably unanimous ruling after consolidating appellate review over national cases through the Levinas decisions.
  • The tribunal has already set RIPTE as the update index for workplace-accident indemnities, including retroactive application to pre-2019 cases.
  • The national labor-reform bill reintroduces IPC+3% and bans interest on interest, creating potential overlap with the court’s forthcoming criteria.