Argentine Court Invalidates President Milei's Labor Reform

On Tuesday, the National Chamber of Labor Appeals declared the constitutional invalidity of the labor reform included by President Javier Milei in the Decree of Necessity and Urgency (DNU) signed in December.

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During a press conference at the Pink House, Presidential Spokesperson Manuel Adorni said that Milei will appeal this decision at all necessary levels, including the Supreme Court.

"The reform is essential to create employment, for companies to hire, and to have a much more friendly labor market for both parties," he said, attempting to justify a pro-corporations proposal that has been strongly rejected by the population on the streets.

The Labor Chamber considered that the DNU's labor-related articles are contrary to what the Constitution stipulates regarding the extent to which the Executive branch can issue decrees.

However, the judges clarified that those articles will be formally valid if Parliament ratifies them within the current period of extraordinary sessions.

The Chamber's decision gives rise to a protective recourse against the reform filed by the General Confederation of Labor (CGT), the union that called for a general strike on January 24.

In its labor chapter, the DNU includes changes in labor lawsuits, the extension of probation periods, the reduction of pregnancy leave, the reduction of pension contributions, the reduction of company compensation to workers, and the reduction of fines for companies with poor worker record keeping.