Upcoming changes in labor court proceedings

The Plenary of Congress of the Republic approved the opinion of the draft law (00930/2021-PJ), which modifies the rules applicable to the appeal in cassation in labor court proceedings. As recalled, these processes have two judicial instances, however, the controversy could be definitively resolved in the Supreme Courtif certain conditions are met and an appeal is filed.

The parties are able to present the said appeal; it is formed for disagreement with the second instance judgment and consideration of the rules of origin of the appeal; and, who will be responsible for examining and resolving them is the supreme court of justicehighest body of Judicial authority.

One of the main changes contained in said notice is that there will be a greater quantitative requirement for filing appeals. The current rule states that the amounts discussed in the second instance must be at least 100 URP (Procedural reference unit), which is equivalent to S/49,500.00 for this year, since the URP is 10% of the OUT which is updated annually. With the change, said minimum amount will increase to 500 URP, which currently equals S/247,500.00.

In this way, the approved project aims to appeal high amount cases, reduce the burden of appeals that the company currently has Supreme Court and that sentences can be handed down within shorter timeframes. Today, between the presentation of said appeals and the publication of a resolution analyzing their origin, approximately one year can pass; and another year, for the issuance of the judgment that resolves the merits, approx.

The ace court convictions who resolve the controversy with a lower amount will be defined in the second instance; Consequently, if the appeals are filed, they will be qualified as inadmissible and may be considered as dilatory procedural acts by the party filing them.

In this respect, it is recommended to examine whether the changes will have an impact on the legal processes that are in progress and audit or update the strategy for defending new legal cases, taking into account the regulatory changes that will come into force after the publication of the law. Likewise, it is suggested to review and strengthen the defense strategies in first and second instances, as there will be cases that cannot be appealed. And, finally, it is recommended that, where appropriate, practical and timely, alternative mechanisms for resolving legal processes be assessed, such as reconciliationthat put an end to it.

He Executive power may enact the rule or observe it and send it back to Parliament or not issue a response. In these latter cases, the Congress is empowered to promulgate the said initiative.