The Supreme Court of Argentina has annulled a ruling made by the Labor Chamber concerning a dismissal case, in which the calculation of compensation included a method known as capitalized interest or anatocism. This method, which the Supreme Court had already rejected in a previous ruling last year, was applied in a decision that not only contradicted established legal standards but also exceeded the compensation amount that the employee, Verónica Mabel Décima, had requested. The ruling involved her case against MTV Networks Argentina S.R.L. (now Paramount Media Networks) and Iss Argentina S.A.

The annulment demonstrates the Supreme Court's commitment to maintaining consistency in labor law regarding compensation calculations. By reinforcing its rejection of interest capitalization in dismissal cases, the Court aims to protect the integrity of labor rights and ensure that compensations are calculated fairly, without excessive burden on employers. This decision underscores the judicial push against practices that can lead to inflated compensation amounts, which might harm the viability of businesses.

Overall, this ruling is significant not only for the parties involved but also for the broader implications it has on labor law in Argentina. It promotes a more standardized approach to calculating dismissals and sends a message about the boundaries of compensation claims in labor disputes, potentially influencing future cases and employer-employee relationships within the country.