Argentine Judge Suspends Key Articles of President Milei's Labor Modernization Law

An Argentine labor court judge partially suspended President Javier Milei's flagship labor reform on March 30, 2026, blocking 82 (articles) — articles of the Labor Modernization Law suspended by court order of the law's 218 articles following a legal challenge by the country's main trade union federation. Judge Raúl Ojeda, presiding over National Labor Court 63, granted a precautionary measure requested by the General Confederation of Labor (CGT), ruling that the suspended provisions showed "serious and grave" indications of unconstitutionality and posed a risk of irreparable harm to workers' rights. The Labor Modernization Law had been approved by Congress on February 27, 2026, and represented what multiple sources described as the most significant legislative achievement of Milei's administration to date. The Argentine government announced it would appeal the ruling.

Platform workers, strike rights, telework among suspended provisions The suspended articles cover some of the reform's most contested elements, stripping the law of several provisions that unions had specifically targeted as unconstitutional. Among the measures now on hold are articles classifying platform workers as independent contractors, the elimination of the in dubio pro operario principle, and the repeal of the telework law. The judge also suspended articles that limited the right to strike by placing restrictions on assemblies and authorizing sanctions against union activity, including the potential revocation of legal status from unions. Additional suspended provisions include changes to collective bargaining rules, modifications to probationary periods, alterations to the calculation of seniority and severance pay, and the creation of labor termination funds intended to replace traditional severance payments with capitalization accounts. Judge Ojeda expressed concern that the termination fund mechanism could encourage unjustified dismissals and expose workers' contributions to potential bad investments. The ruling also suspended articles limiting companies' liability when using outsourced labor and those that removed jurisdiction from the National Labor Justice system in disputes involving the state.

„With the issuance of this precautionary measure, both parties (the State and the CGT) will strive to reach a final decision as soon as possible and in respect of social peace.” — Raúl Ojeda via AFP

CGT celebrates ruling; government vows to fight back in court The CGT welcomed the decision as a significant legal victory, framing the reform as an attack on fundamental labor protections. The federation argued in its original filing that the law introduced regressive and permanent changes that violated constitutional rights, including protections against dismissal and trade union freedom. „We welcome this court decision as a fundamental step in the defense of workers' rights.” — CGT via RFI The Argentine government, by contrast, denounced what it called attempts to obstruct necessary reforms, characterizing the law as a tool for job creation and economic competitiveness. Milei's Labor Ministry published a statement on X describing the legislation as a "fundamental tool for the creation of declared jobs, the improvement of competitiveness and the strengthening of legal certainty for workers and employers." The government confirmed it would appeal the ruling, and the legal dispute is expected to continue through the courts before any final determination on the law's constitutionality is reached. The CGT had filed its challenge shortly after the law's parliamentary approval, which itself had been accompanied by street demonstrations and a general strike.

300,000 job losses frame the political stakes of the reform Argentina's labor market has faced sustained pressure over recent years, with approximately 300,000 jobs lost across the private and public sectors in the two years preceding the law's passage, according to reporting by AFP cited in multiple sources. The reform was adopted amid a broader austerity drive by the Milei administration aimed at curbing inflation, which had reached extreme levels in Argentina before the government's fiscal tightening measures took effect. The CGT, founded in 1930, has historically been aligned with Peronism and has been a central actor in Argentine labor politics for nearly a century. The ruling on March 30 was not the first legal setback for the reform — at least five other Argentine courts had already struck down individual articles in first-instance rulings before Judge Ojeda issued the broader suspension. The Argentine Federation of Commerce and Services Employees had separately secured the suspension of articles limiting the validity of collective agreements and union financing. Milei had promoted the reform as a means of energizing what he described as a labor market stagnant for more than a decade, with the law relaxing hiring conditions, reducing layoff costs, and allowing working days to be extended from eight to twelve hours provided a twelve-hour rest between shifts was observed. The precautionary measure is provisional in nature and remains in effect until the court rules on the substantive constitutional question, meaning the full legal battle over the reform's future is still ahead.

Labor Modernization Law — key provisions before and after suspension: Platform worker classification (before: Classified as independent contractors, after: Suspended — previous status applies); In dubio pro operario principle (before: Eliminated by the reform, after: Suspended — principle reinstated provisionally); Telework law (before: Repealed by the reform, after: Suspended — repeal on hold); Maximum working day (before: Extended to 12 hours, after: Suspended — extension on hold)