Argentina Enacts Labor Law Changes to Simplify Hiring and Firing

Argentina has put into effect revised labor legislation that raises the maximum workday to 12 hours, reduces severance pay, and limits the right to strike and hold assemblies. The law took full effect after a judge's partial suspension was overturned on procedural grounds late last month. It seeks to simplify labor relations and reduce work-related litigation.

Milei described the legislation as historic labor modernization after its passage in February. The changes align with his administration's broader economic measures that have lowered annual inflation to 32.6 percent in March from over 211 percent at the start of his term.

Unemployment stands at 7.5 percent, and 43 percent of the workforce is employed informally. Real wages have declined, and monthly inflation has begun to rise again.

State health administrator Natalia Fernández said formal workers live under the poverty line and joined a May Day protest organized by the General Confederation of Labor. She stated that the legislation attacks the core of Argentine identity. Business groups including the National Union of Entrepreneurs, Small and Medium Enterprises and Producers have supported the overhaul.

Exequiel Chapur, a supermarket owner in Córdoba, said older rules were impossible to apply in the 2026 economy. Factory worker Sebastián Tesoro lost his job when the Fate tire plant closed in February. He said there is anger toward union leaders but that workers continue to fight for their rights without the General Confederation of Labor's organizing.