ARGENTINA Trends and Developments Contributed by: Daniel Rinci, Tomas Cabanelas, Fernando García and Marisa Majul, Rinci & Asociados
predictable and easier to provision for. The scope for employment litigation to produce outsized awards is narrowed. The administrative machinery around employment relationships is simplified That said, the reform is not without complexity. The transitional provisions – particularly around pending court cases and the staggered entry into force of dif - ferent provisions – require careful attention. The politi - cal and legal contestation around the law is not yet fully resolved, with union challenges still working their way through the courts.
One of the key reforms that would end excessive labour litigation appears to have been left behind, however: a soft cap on severance payments based on the employee’s salary, and a hard cap on any amount claimed as severance. Without them, employer’s claims can still become exorbitant budget provisions leading to uncertainty.
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