A labour judge on Monday partially suspended much of President Javier Milei’s labour reform, which was approved by Congress back in February, in response to a union complaint alleging the law is unconstitutional.
The decision responds to an injunction filed by Argentina’s main labour federation, the Confederación General del Trabajo or CGT, days after the Senate approved the reform amid protests and following a general strike.
The filing, signed by the three current members of the CGT leadership triumvirate – secretaries-general Jorge Alberto Sola, Octavio Argüello and Cristian Jerónimo – succeeded in halting a significant portion of Law 27.802, which was passed on February 27.
The so-called "labour modernisation law" allows working days of up to 12 hours, reduces severance pay and lowers employer taxes. Union leaders say the changes are unconstitutional, roll back hard-won worker rights and unfairly favour private companies.
On Monday, Judge Raúl Ojeda ordered a precautionary suspension of around 80 articles out of the more than 200 contained in the law until the underlying constitutional challenge is resolved.
Among the suspended articles are the classification of platform workers as independent contractors, the elimination of the “in dubio pro operario” principle (in case of doubt, the courts rule in favour of the worker), changes related to strike action and the repeal of the teleworking or remote work law.
Changes affecting severance pay, working hours, holidays and the creation of labour termination funds were also included in the suspension.
“With the issuance of this injunction, both parties [the State and the CGT] will seek to reach a final ruling as soon as possible and in social peace,” Judge Ojeda said in his decision.
The National Labour Court warned of the possible “affectation of constitutional rights” and the risk of “imminent harm” to workers.
Ojeda stated that the injunction is justified due to the “qualified likelihood of the right” and because, if the rules established in the law were to be implemented, it could lead to a breach of acquired labour rights.
The CGT labour federation argues that the legislation is unconstitutional because it violates fundamental principles such as labour progressivity, trade union freedom and the system that protects workers.
"We welcome this court ruling as a crucial step in defending the rights of the organised labour movement," the CGT said in a statement, noting that the reform amounts to "a deterioration in working conditions and a weakening of trade union action."
Milei’s government, meanwhile, says the reform aims to modernise the economy and attract investment. The President has argued that Argentina's labour laws are overly restrictive and discourage formal hiring. More than 43 percent of Argentine workers lack formal employment contracts.
Via a statement issued by the Human Capital Ministry, Milei said it would appeal Ojeda's ruling and challenge those who "seek to obstruct the reforms necessary to overcome unemployment and stagnation."
Milei has accelerated his deregulatory free-market reforms since winning October midterms with backing from US President Donald Trump.
Polls show Argentines divided on the issue, with a recent survey finding 48.6 percent in favour of the law and 45.2 percent against.
– TIMES/NA/AFP
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