The Government of Argentina amended the Workers’ Compensation Insurance Regime yesterday through Decree 54/2017, primarily introducing a mandatory administrative procedure prior to employees filing a labor lawsuit related to work accidents or occupational illnesses.
With this modification, President Macri aims to reduce the growing number of labor litigations related to workplace risks recorded in recent years in Argentina.
The reform, published yesterday in the Official Gazette, was enacted by presidential decree, although a similar bill was currently under discussion in the Argentine Congress (and had been approved by the Senate last year), demonstrating the seriousness with which the new Argentine government is committed to lowering labor costs.
The Decree has been in force since January 24, 2017.
Key points of the Decree are as follows:
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The worker, advised by a lawyer, must undergo a mandatory medical examination conducted by a Medical Commission of the Ministry of Labor in each jurisdiction before filing any labor lawsuit related to work accidents or occupational illnesses.
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The Medical Commission has a term of 60 business days to determine whether the worker suffered a work accident or illness, the degree of disability, and the compensation payable by the Workers’ Compensation Insurer, in accordance with Workers’ Compensation Insurance Law No. 24,557.
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Both the worker (advised by a lawyer) and the workers’ compensation insurer must attend a mandatory hearing in which the resolution of the Medical Commission will be communicated to both parties.
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The worker and the insurer have the right to: (i) accept the Medical Commission’s ruling; (ii) request its review by the Central Medical Commission; or (iii) reject the ruling and file an appeal before a labor court.
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If both the worker and the insurer accept the ruling (whether from the Medical Commission or the Central Medical Commission), or if neither party appeals within the legal deadline, the ruling will be final and unappealable. The parties may also settle the case at that time by agreeing to compensation higher than that established by the Medical Commission (which will also be final and binding after Medical Commission approval).
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The base salary for calculating the compensation payable by the workers’ compensation insurer will be adjusted according to an average wage increase indicator (RIPTE) plus interest accrued from the date of disability until payment, increasing the compensation payable by the insurers as an incentive for employees to accept the compensation and avoid litigation.
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In cases where an employee files a lawsuit before a labor court, the medical expert appointed by the court will be selected from the Forensic Medical Group. This provision also aims to remove litigation incentives by excluding ordinary medical experts appointed by the court, who were only paid fees in cases where rulings were adverse to the workers’ compensation insurers.
