In recent days, the Second Chamber of the Supreme Court of Justice resolved the contradiction of rulings arising from criteria issued by several Federal Collegiate Courts in connection with the legal validity of the lost wages limitation, which was included within the reformed Article 48 of the Federal Labor Law, and determined that such measure is constitutional and does not affect workers’ human rights.

As part of the arguments to support its decision, said Chamber established that such limitation does not infringe the progressiveness principle that the Constitution protects regarding human rights given that workers who deem to have been subject to a wrongful dismissal are still provided with the possibility to claim either reinstatement or an indemnification, as required by the international treaties on employment minimum standards. Therefore, through the reform, Congress only modified the way to calculate lost wages, which is within its prerogatives.

Likewise, the Second Chamber deemed that the 12 months’ limitation on lost wages plus the respective interest in case the trial exceeds such term, is proportional and reasonable, as the purpose of such limitation is to avoid that proceedings are artificially extended with the sole intention of increasing potential lost wages.

It is important to bear in mind that this resolution was reached to settle contradiction of rulings by Federal Collegiate Courts, therefore, such resolution is binding upon all such Courts, as well as upon all Conciliation and Arbitration Boards in the country.