Milei’s labour law reform comes into force in Argentina

New labour laws have been in force in Argentina since 6 March. The Argentine Senate passed the reform on 27 February following hours of debate and weeks of protests outside the Congress building. Trade unions had also called for a 24-hour general strike on 19 February in opposition to the reform. Lateinamerika Nachrichten (Latin America News) provides an overview (in German) of the situation prior to the vote and the key points of the reform.

For Argentina’s ultra-libertarian President Javier Milei, the passing of the reform is a success. The ‘modernisation’ of labour law he has touted is intended to strengthen formal employment in Argentina, but in reality it represents a significant curtailment of workers’ rights. For instance, it allows for working days of up to twelve hours (instead of the previous eight), wage payments in the form of vouchers or payments in kind, and creates an ‘hour bank’ whereby overtime is no longer paid but must be offset by time off. In future, workers will no longer be able to decide for themselves when to take their holiday; instead, the employer can determine the timing and duration of the holiday each year.

At the same time, protection against unfair dismissal is being eroded: the reform allows for dismissal without cause and guarantees only reduced severance payments to employees. From now on, these payments will no longer be borne by employers; instead, they will be funded from funds previously earmarked for pension contributions. Last but not least, the reform severely restricts trade union activities and the right to strike, as well as the scope of negotiated collective agreements and professional statutes. Legal disputes will also become much more difficult for workers to pursue in future.

The trade unions regard these changes not only as regressive, but also as unconstitutional. The CGT trade union confederation has therefore announced that it will challenge the law in court. Lawyer and labour law expert Luis Campos also describes the reform in La Jornada as “the greatest setback in (labour) law since the dictatorship”. He argues that it encroaches on all aspects of the relationship between workers and employers and strengthens the latter at both the individual and collective levels. Campos highlights in particular the weakening of the right to strike, the impact on social security systems and the overburdening of the courts.

Milei, on the other hand, is receiving praise from employers’ associations – and admirers in Germany. The Friedrich Naumann Foundation for Freedom, for instance, reports on Milei’s “strong start” to 2026 and describes the changes brought about by the labour law reform as “sensible measures”.