The Supreme Court of Justice declares Act 2764/2022 of the Labor Chamber unconstitutional

The Supreme Court of Justice of the Nation has issued a highly significant ruling that invalidates the criteria for updating labor credits established by the National Chamber of Appeals of Labor through Act 2764/2022 within the scope of the National Labor Justice.

This ruling, stemming from the case “Oliva, Fabio Omar c/ COMA S.A. s/ dismissal,” highlights several crucial points:

It has been pointed out that the periodic capitalization of interests established in Act 2764 CNAT and ordered by the Chamber contradicts Article 770 of the Civil and Commercial Code of the Nation, which prohibits interest on interest.

The periodic and successive capitalization set forth in Act 2764/2022 of the CNAT lacks a legal basis in the provisions invoked by the court.

Although judges have some discretion in applying interest in labor cases, this discretion does not justify disproportionate results that ignore economic reality.

Article 770 clearly states that interest on interest should not be charged, except in very specific circumstances, which do not apply in this case.

The challenged ruling and the act in question have ignored the general principle established by the legislator, creating an exception not legally contemplated.

The periodic and successive capitalization of interests has resulted in an unreasonable increase in debt, which lacks economic justification.

These accumulations of interest have unjustifiably exceeded the reasonable limits established by the law.

The ruling in question is not based on a reasonable interpretation of current law, so it must be dismissed in accordance with the doctrine established by the Supreme Court in cases of arbitrary judgments.

This ruling marks a milestone in jurisprudence, questioning entrenched legal principles and establishing new parameters for the updating of labor credits.

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