The Rio Times · October 1, 2026

Milei's labor reform remains the subject of a legal dispute six months after its enactment

The Rio Times website explained in detail the scope of Law 27,802, the labor reform pushed by Javier Milei, which has been in effect since March 2026 after passing through Congress amid protests and a general strike. The law reduced layoff costs, created a severance fund financed by employers, allowed workdays of up to 12 hours with a time bank, and gave priority to company-level collective bargaining agreements over sector-wide ones, among other changes.

The law was suspended by the courts in March but has been fully reinstated since May 8, although no ruling on its constitutionality has yet been issued. The media outlet reported that the CGT challenged the law and that official data show informal employment rose to 45% and registered employment fell for thirteen consecutive months. Union leader Cristian Jerónimo argued that “this reform did not create a single job,” while the government insists that the law will improve formal hiring over time.

Via The Rio Times