The interest rate in labor lawsuits

Regarding the interest rate that is applied in labor lawsuits, for several years the 2658/2017 rate has been applied which, with the galloping inflation in our country, has become obsolete, and workers who were going through years litigating in the labor court at the National level.

In order to remedy this situation, the Labor Appeals Chamber published the controversial CNAT Act 2764 that enables anatocism, authorizing the capitalization of interest on an annual basis from the date of notification of the transfer of the demand. The Judges who have decided not to apply it, opted for a hybrid between this new Act and a calculation between an interest rate whose result is higher than that of the previous Act, in order not to fall into anatocism, but trying to adapt to economic reality. where the results end up being devastating for the companies and with results that are counterproductive to their purpose.

In other words, we are faced with a scenario in which only companies with sufficient backing can, firstly, pay the sentences, and, secondly, get out of that situation alive after paying the sentence together with the payment of legal costs. .

Given this circumstance, and not finding a Law that allows the applicable interest rate to be set, the result of said Act generates the continuity of the judicial processes, even in some cases, until the Supreme Court of Justice for being a violation of the rights of defense and owned by employers, while said rule is unconstitutional.

We are convinced that, although the previous Act of the outside does not adapt to the current panorama, the truth is that the application of Act 2764 is largely excessive, but at the same time contrary to law, insofar as anatocism is prohibited by Law Therefore, faced with this situation, we believe that an intermediate interest rate should be applied between Act 2658 and Act 2764, without consenting to anatocism.

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