Argentina’s Labour Reform Explained: What Milei’s Law Changes and Where It Stands

Javier Milei, Argentina's libertarian president since December 2023, presented his Labour Modernisation Law on March 1, 2026. The legislation aims to replace outdated labour rules from half a century ago, and it has survived court challenges. Since its enactment, the law has tackled issues such as high informality rates, expensive dismissals, and a "lawsuit industry." It sets new standards for registered work, reduces informality, and makes labour standards more suitable for the 21st century.

The law introduces several key changes to Argentina's labour rules. For instance, it extends the trial period for new hires from three to six months, scrubs fines for unregistered employment, and creates a Labour Assistance Fund (FAL) to cover future severance payments. Large companies contribute 1% of payroll; smaller ones, 2.5%. Additionally, the law establishes hours banks, allowing employees and employers to trade overtime pay for time off.

The legislation also changes collective bargaining rules. Company-level agreements now take priority over broader ones, and expired agreements no longer stay in force automatically. Furthermore, it introduces new floors for strikes in essential services such as health, energy, telecommunications, aviation, and education. Workplace assemblies now need prior employer approval, and union "solidarity contributions" are capped at 2% of pay.

Lastly, app-based delivery and transport workers are treated as independent workers with the freedom to connect and refuse orders, and platforms must insure them.