On July 10, 2025, the Supreme Court of Argentina issued a landmark ruling in Oviedo v. Telecom Argentina S.A. et al.. This decision reshapes how directors and corporate officers can be held personally liable for labor violations, providing greater clarity and protection for corporate leadership in Argentina.
Key Takeaways
- No automatic liability: Being a director does not automatically make you personally liable.
- Fault required: Liability arises only from intentional misconduct or gross negligence.
- Prudent businessperson standard: Reasonable diligence, not perfection, remains the benchmark.
- Protection of corporate structures: Legal entities gain stronger protection, creating a more stable business environment.
Why It Matters
This ruling enhances legal certainty for corporate leaders, ensuring governance is evaluated in context and aligning Argentina with modern labor and corporate practices.
Opportunity for Expansion
With clearer rules and a supportive business climate, Argentina is becoming a more attractive destination for international companies.
At Quadlux, we help businesses navigate these legal changes through EOR services and entity setup solutions across LATAM and beyond.
