Argentina: Transfer of National Labor Justice System to the City of Buenos Aires

In brief

On 10 February 2026, the National Government and the City of Buenos Aires executed an agreement to transfer jurisdiction over the National Labor Courts to the local judiciary of the City, titled the "Acuerdo de Transferencia de la Función Judicial en Materia Laboral del Ámbito Nacional a la Justicia del Trabajo de la Ciudad Autónoma de Buenos Aires" (the "Agreement").

In order for the Agreement to enter into force it must first be approved by the National Congress and the City of Buenos Aires’ local Parliament. The Agreement provides for the transfer to be carried out in progressive manner, assigning new cases to the City’s labor courts, while maintaining ongoing case-files before the National Labor Courts. These will maintain their historic jurisdiction until the two‑instance review process is exhausted.

The debate for the Agreement’s approval has been included within the Congress’ debate of the new Employment Reform Bill. On 11 February  2026, Senate passed its initial approval.
This transfer is particularly significant as it addresses a longstanding institutional debt pending since the 1994 constitutional reform. It also reignites the dispute over judicial jurisdiction in Buenos Aires City, which intensified following the "Levinas" ruling. Moreover, its implementation will directly impact where and how future labor disputes are litigated.

In focus

Key provisions of the Agreement

• New jurisdictional framework: The City of Buenos Aires’ Justice System will be in charge of those disputes filed after the Agreement enters into force; the National Jurisdiction will retain prior cases until their conclusion. The Agreement provides that the City’s Labor Courts will have exclusive jurisdiction over individual labor disputes initiated after implementation — i.e., disputes arising between employers and employees from private employment relationships. These new cases will be processed entirely before the City’s labor courts.
• Excluded matters: Collective disputes, union‑related negotiations, and cases involving the National Government will remain under Federal Jurisdiction and will be processed before the Federal Administrative Litigation Courts.
• Pending approvals: The Agreement was approved by the Senate through Article 91 of the Employment Reform Bill — thus obtaining initial legislative approval. It must still be sent to the House of Representatives for debate and voting, and must subsequently be ratified by the City’s local Parliament.
• Implementation: Once in force, The City will have 180 days to appoint judges and prepare the infrastructure for the new labor‑court system.

Analysis of key points of the Agreement

1. Transition. The division between cases that will fall under City jurisdiction and those already pending before the National Labor Courts will generate a prolonged period in which two labor‑court systems coexist within the City. This may produce procedural and jurisprudential differences depending on the forum.
2. Operational implications. Although the Agreement does not alter substantive labor law, it does change the competent forum for future litigation. Adjustments in case‑processing timelines, judicial criteria, and litigation strategy can be expected, particularly during the period of dual jurisdiction.
3. Pending appeals and enforcement of judgments. The enforcement of final judgments corresponding to cases currently pending will proceed before the City’s judiciary. The Agreement includes a transitional clause to clarify the treatment of appeals filed when the Agreement enters into force and with respect to final judgments issued thereafter. This clause provides that:
   1. The Superior Court of Justice of the City of Buenos Aires (TSJ) is the competent body to decide extraordinary or ordinary appeals filed—following the Supreme Court’s “Levinas” ruling (December 2024)—pursuant to City Law No. 402, against decisions issued by the national ordinary courts.
   2. In matters relating to enforcement of judgments, the TSJ will hear extraordinary and ordinary appeals filed before the national ordinary courts concerning issues of local and common law, as provided under Law No. 402.
   3. The TSJ will also act as the highest court of the case when a federal question is raised, in accordance with Article 14 of Law No. 48.

Violeta Bove, Associate, and Josefina Saralegui, Senior Paralegal, have contributed to this legal update.

Download the Spanish version of Argentina: Transfer of National Labor Justice System to the City of Buenos Aires.