Employment and Social Security

Ruling on AFJP’s promoters commissions

The National Labor Court of Appeals issued a “fallo plenario” (judgment by means of which the different chambers of a same court of appeals put an end to a certain legal dispute, which will thereafter be binding upon all lower courts) regarding the salesperson’s right to receive a commission from an AFJP (private pension funds).

The Court stated that according to section 108 of the Labor Law, an AFJP’s salesperson is entitled to a commission when: (i) the AFJP’s Superintendence approves the affiliation of a new contributor; and (ii) it is not required the effective payment of the contribution by the new affiliate.

The salesperson has the right to receive the commission as from the Superintendence’s approval of the affiliation, as that is the time in which the agreement with the AFJP is in force. As a consequence, the salesperson is not responsible for the payment of the contribution owed by the new contributor to the respective AFJP since that is a risk borne by the AFJP.

For further information on this topic please contact Nicolás Grandi