In line with the Supreme Court of Argentina's ruling in
"Oliva, Fabio Omar v. COMA S.A. on dismissal," the
National Labour Court of Appeals reduced the interest rate to be
applied in labour lawsuits.
Indeed, in February 2024, the Supreme Court decided to overturn
the annual, regular, and successive capitalization of interest
applied by the National Labour Court of Appeals of the Federal
District, Argentina ("CNAT") according to Act 2764/2022
(the "Act"), which entailed capitalizing interest once a
year, every year, from the date of the complaint's notification
to the date of judgement settlement.
Through this decision, the Court determined that the annual,
regular, and successive interest capitalization based on the
CNAT's Act was inconsistent with the provisions of the National
Civil and Commercial Code and that this practice resulted in a
disproportionate and unsupported economic result that exceeded any
reasonable standard.
