In the early hours of this Thursday, February 12, the Argentine Senate gave its general approval to the labor reform considered crucial for President Javier Milei's shock therapy program, after hours of debate that took place in the shadow of a massive protest in front of Congress. The project – which radically modifies working conditions in the country characterized by a high level of unionization – must pass to the Chamber of Deputies.

First modification: 02/12/2026 - 13:35 Last modification: 02/12/2026 - 20:32

With 42 votes in favor, 30 against and zero abstentions, the Upper House of Argentina generally approved the labor reform, promoted by President Javier Milei.

This first endorsement in the Legislature came after 14 hours of intense debate and in the midst of a tough pitched battle between security forces and protesters against the reform, in the center of Buenos Aires.

Now, senators must carry out a private vote. That is, separately, on each of the 26 chapters that make up the bill, which could modify aspects of the text.

Then, the bill must go to the Chamber of Deputies, where legislators will have to vote on any possible modifications that may arise along the way.

This is a fundamental reform in Milei's effort to transform Argentina's heavily regulated economy toward a free market model.

The Administration has prioritized radical labor reforms in its effort to attract investment and revive growth, but they have generated a confrontation with powerful unions, in a country with a long history of labor struggle.

What changes does the labor reform propose and what do its opponents point out?

One of the most controversial aspects of the reform focuses on Argentina's dismissal system, as it would remove the strong protections the country has offered for decades against unfair dismissal, which until now has allowed courts to award substantial damages following unfair dismissal claims.

The bill would extend trial periods during which companies can let go of new employees they deem unproductive, weaken national unions by allowing collective bargaining at the company level, and reduce grounds for unfair dismissal.

Opponents of the measure also highlight that the reform includes a worsening of the right to vacations, licenses and medical leave, as well as an increase in working hours.

Also, they point out, it points against the country's long history of workers' struggle, since it limits union rights and strike rights, among other aspects.

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Ultimately, the bill has generated fierce opposition from unions and their Peronist allies, who argue that it would reverse measures that protect workers from abuses and the country's notoriously frequent economic crises.

“If severance pay, overtime and vacation pay — in other words, all the protections that workers have acquired over time — are at stake, it will not improve the situation for anyone,” declared Axel Kicillof, governor of Buenos Aires province and the most powerful elected official in the Peronist opposition.

Read alsoAmong strong protests, Milei's labor reform advances in the Senate; lack of deputies

What do those who defend the Argentine labor reform highlight?

Supporters of Milei's labor law reform say high severance pay and taxes make it nearly impossible to lay off employees, limiting productivity and discouraging companies from seeking formal employment.

Almost half of Argentines work “black”. That is, in informal or undeclared employment and they point out that employment growth in the private sector has stagnated for 14 years. They thus maintain that the reform would encourage labor hiring.

“With the modernization of the labor system, more people will have access to formal and legal employment (...) We are rebuilding Argentina from scratch, starting with employment,” declared Milei's La Libertad Avanza party in a statement at the beginning of the debate.

If approved definitively, it would mark an important step in Javier Milei's economic reform. A defeat would weaken his agenda and highlight the limits facing his minority government.

Analysts expect the proposed legislation to advance if the government accepts changes proposed by moderate opposition lawmakers.

Read also: What chance does Milei's controversial labor reform have of being approved in Argentina?

With Reuters, AP and EFE

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