Argentina Approves Labor Modernization Law Under President Javier Milei

Argentina's Congress gave final approval to President Javier Milei's Labor Modernization Law on 27/02/2026, introducing extensive changes to the country's employment legislation. The reform addresses hiring arrangements, working conditions, severance compensation, collective bargaining, and employment-related legal procedures. Milei's administration presented the legislation as a measure to reduce labor costs, encourage private investment, and expand formal employment. Trade unions and opposition lawmakers criticised the changes, arguing that they could weaken job security, collective bargaining rights, and existing protections for employees. The legislation emerged from the government's broader programme of economic deregulation and labor-market reform. Its passage followed parliamentary debates, opposition protests, and organised resistance from Argentina's labor movement. The law introduced revised rules governing employment relationships and mechanisms for handling certain termination-related payments. Officially published on 06/03/2026, the legislation established a new legal framework for employers and workers, although its longer-term effects on employment, wages, and investment remained to be determined.