Argentine Judiciary Halts Key Portions of Javier Milei’s Labour Reform Following Major Union Challenge

An Argentine judge has blocked key parts of President Milei’s labour law following union appeals, citing potential violations of constitutional worker rights.

By: AXL Media

Published: Apr 2, 2026, 12:06 PM EDT

Source: Information for this report was sourced from Perfil

The Judicial Intervention in Executive Deregulation

The ambitious economic overhaul spearheaded by President Javier Milei has encountered a significant legal obstacle within the Argentine court system. On Monday, a labour judge partially suspended the implementation of Law 27.802, a sweeping reform package that had been approved by Congress in late February. This judicial stay specifically targets roughly 80 of the more than 200 articles contained in the legislation, effectively pausing the most contentious elements of the government's deregulatory agenda. The court’s intervention suggests a high level of scrutiny regarding the constitutional alignment of the new statutes with existing provincial and national protections.

Constitutional Challenges From Organized Labour

The suspension was triggered by a legal challenge from the Confederación General del Trabajo, the nation's primary labour federation. Leadership within the organization, including secretaries-general Jorge Alberto Sola, Octavio Argüello, and Cristian Jerónimo, argued that the reform amounts to a systemic rollback of acquired rights. The union’s filing emphasizes that the legislation infringes upon the principle of labour progressivity and threatens the autonomy of trade union actions. By successfully petitioning for an injunction, the federation has managed to freeze the application of the law while the underlying constitutional questions are debated in the higher courts.

Critical Articles Removed from Immediate Implementation

The scope of the suspension covers several of the reform's most transformative measures, including the reclassification of certain workers as independent contractors. Judge Raúl Ojeda specifically halted changes related to the duration of the working day, which could have extended to 12 hours, and the proposed reduction in severance pay. Additionally, the court suspended the repeal of the existing teleworking law and the elimination of the legal principle that requires courts to rule in favor of the worker in cases of ambiguity. These specific components were identified by the National Labour Court as posing a risk of imminent harm to the workforce.