Key Takeaways
- Argentina’s Labour reform has been suspended by the court, pending further review.
- The Labour reform proposed by President Javier Milei includes the extension of the probationary period for workers to eight months.
- Labour unions have challenged the proposals in court, citing concerns over the proposed reforms.
Buenos Aires: An Argentine court has suspended the labour reform proposed by President Javier Milei, prompting the country’s authorities to appeal the court’s decision, Argentine broadcaster TN reported on Wednesday.
The court ordered that the implementation of the article “Work” outlined in the decree be suspended, the broadcaster reported, adding that the Argentine government was planning to file an appeal.
In December 2023, President Javier Milei signed an emergency decree that proposed reforms in all sectors of the economy and the social sphere, including the extension of the probationary period for workers to eight months, abolishment of several fines for employers and elimination of the unemployment insurance fund. This move was met with opposition from labour unions. The country’s labor unions challenged the proposals in court.
The emergency decree in Argentina goes into effect just days after it is signed but must be backed by the country’s parliament, which could veto it. If the parliament voted against the decree, it would be the first time when Argentine lawmakers and senators have rejected an emergency decree. While parliament is reviewing the decree, it is considered to be in effect.
