Background on Javier Milei and His Political Party
Javier Milei, an Argentine politician and economist, founded the La Libertad Avanza (LLA) party in 2019. Known for his libertarian views, Milei’s party gained significant traction in the 2025 legislative elections, winning 16 provinces including Buenos Aires. With this electoral success, Milei’s government is set to strengthen its presence in the Congress and initiate a new phase focusing on “second-generation” reforms.
Labor Reform Proposal Details
One of the key reforms Milei’s government plans to implement is a labor reform, which was initially proposed by National Deputy Romina Diez in late 2024. The project, titled the “Promotion of Investments and Employment Law,” aims to extend the daily work hours from eight to twelve, increase flexibility in labor agreements and vacation periods, among other changes. The proposal has already garnered support from legislators across various party blocks.
Key Aspects of the Proposed Labor Reform
- Extended Work Hours: The reform seeks to increase the daily work hours from eight to twelve.
- Flexible Labor Agreements: The proposal aims to provide more flexibility in labor agreements.
- Vacation Period Flexibility: The reform intends to allow workers to fraction their vacations into non-less-than-one-week segments.
Additional Provisions in the Reform
Milei’s government also plans to modify certain articles of the Labor Contract Law. Some key aspects include:
- Employer Modification Rights: Employers will be allowed to introduce changes in work performance, provided these modifications are not unreasonable and do not alter essential aspects of the contract.
- Disciplinary Sanction Appeals: The proposed regulation clarifies the timeframes and mechanisms for contesting disciplinary sanctions. Workers will have 30 days from the notification of a sanction to question its validity and adjust its type or extent. After this period, the sanction will be considered accepted.
- Remuneration Flexibility: The reform aims to enable payment in cash, check, or bank accreditation “at the worker’s discretion for personal collection or transfer to another person or institution.” The government intends to make vacation periods more flexible, allowing workers to take their rest days in smaller segments.
Impact and Relevance
This labor reform, if passed, will modernize Argentina’s current labor legislation and provide businesses with more predictability, encouraging formal employment. Critics argue that the extended work hours and increased flexibility might negatively impact workers’ rights and work-life balance.
Key Questions and Answers
- What is the main goal of Milei’s labor reform proposal? The primary objective is to modernize Argentina’s labor legislation, providing businesses with more predictability and encouraging formal employment.
- What changes does the proposed labor reform entail? The reform aims to extend daily work hours from eight to twelve, increase flexibility in labor agreements and vacation periods, and modify certain articles of the Labor Contract Law regarding employer modification rights and disciplinary sanction appeals.
- What are the potential impacts of this labor reform? Supporters argue it will modernize labor laws and boost formal employment. Critics, however, express concerns about possible negative effects on workers’ rights and work-life balance.
