Argentina Labor Reform 2026: What Employers Need to Know as Law 27.802 Faces Legal Challenges

Argentina proposed substantial reforms to individual employment law when it introduced its Labor Modernization Bill No. 27.802 in March 2026. President Javier Milei’s labor reform bill lays out significant changes to the country’s Labor Contract Law, and it was passed by the Argentine Senate. However, Argentina’s National Labor Justice system ruled on March 30, 2026, to suspend certain elements of the administration’s reform.

The ruling came after the General Confederation of Labor (CGT) raised concerns about the unconstitutionality of several clauses and the risk of harm to workers if the full law goes into effect. According to elciudadano.com, the law would allow for 12-hour workdays, restrict strikes, and regulate union assemblies. Prior to the ruling, other components of the labor reform had been halted by four judicial decisions, introducing uncertainty in labor compliance in Argentina.

While the National Labor Justice system’s decision does not deliver a definitive ruling on the law’s constitutionality, local media reported that the precautionary measure temporarily suspends articles 1, 3, 6, 9, 10, 13, 16, 17, 18, 19, 23, 24, 25, 26, 27, 28, 30, 31, 32, 33, 34, 41, 42, 44, 43, 46, 47, 48, 50, 51, 53, 55, 56, and 57 of Law 27.802 — roughly 40% of the bill’s articles. With so many pieces of President Milei’s labor reform facing scrutiny, employers in Argentina — including multinational employers managing workforces across Latin America — may want to wait for clarity before applying the relevant components of the reform within their own operations.

Sources: DLA Piper, elciudadano.com, elciudadano.com, Buenos Aires Times, Baker McKenzie