On March 14, 2024, the National Appellate Court issued a resolution introducing a new method to calculate interest rate in labor disputes in the city of Buenos Aires.

This came shortly after the Supreme Court ruled that the method of calculation being used by the Labor Appellate Courts contradicts the general principle established by the Civil and Commercial Code, creating an exception that lacks legal grounds (*)

Through Resolution 3/2024, the National Appellate Court:

• Replaced the previous criterion providing, as a recommendation, that labor credits without a legal rate should be adjusted based on the CER rate (Reference Stabilization Coefficient) regulated by the Argentine Central Bank, plus a fixed 6% annual rate.
• Established that capitalization of interests can occur only once, from the date the defendant is served with the claim, using only the fixed annual rate of 6%.

It is expected that this new standard will provide both employers and employees with greater certainty regarding the credits disputed in labor conflicts.

(*) "Recent decision made by the Supreme Court reducing interests in labor claims," Dentons Insights, March 1, 2024