Argentina’s Chamber of Deputies approved the government’s labor reform early Friday morning after an extended session marked by street protests, heavy security and intense political debate.
The ruling coalition and allied parties secured enough votes to pass the bill, while most opposition lawmakers voted against it. Due to last-minute amendments, the text must now return to the Senate before becoming law.
The reform is one of the most significant initiatives of President Javier Milei’s administration and aims to reshape the country’s labor system.
How the vote unfolded
The debate lasted more than twelve hours and included heated exchanges, lengthy speeches and last-minute negotiations.
Several controversial articles were modified or removed to secure broader support.
Government officials described the approval as a historic achievement, while critics warned of reduced worker protections.
Changes to working hours
One of the most debated aspects was the reform of working schedules.
The law allows more flexible arrangements, including extended daily shifts of up to 12 hours in specific cases, based on agreements.
It also introduces a “time bank” system that allows workers to compensate overtime with rest days.
New severance pay rules
The reform changes how severance payments are calculated.
Compensation will now be based on the highest regular monthly salary, excluding certain bonuses and extra payments.
Authorities argue this will reduce litigation and lower employment costs.
Regulation of strikes and essential services
The bill establishes minimum service levels during strikes in sectors such as healthcare, education, transport and security.
Hospitals and schools will no longer be allowed to shut down completely during labor disputes, although the right to strike remains.
Unions claim this weakens their negotiating power.
Collective bargaining and unions
The reform promotes company-level agreements over industry-wide contracts.
It also limits the automatic extension of expired agreements, forcing faster renegotiations.
The government says this modernizes labor relations, while unions see it as a loss of influence.
Vacations and medical leave
Vacation periods can now be divided into shorter segments of at least seven days.
A controversial proposal to cut pay during medical leave was removed, keeping salary protection during illness.
Impact on businesses and employment
Officials argue the reform will encourage formal hiring, boost investment and reduce informal work.
It also includes gradual reductions in employer contributions.
Business groups largely welcomed the initiative, while labor organizations opposed it.
Union response
Major unions described the reform as a setback for workers’ rights.
They announced possible new strikes and legal challenges against the law.
Union leaders demanded further changes in the Senate.
What remains before final approval
Despite approval in the lower house, the bill is not yet law.
It must return to the Senate for final review.
If approved without changes, it will come into force in the coming months.
A polarized political climate
The vote took place amid widespread social unrest and a general strike.
The government views the result as a major political victory, while opponents warn of deeper divisions.
The labor reform represents a turning point for the administration and will directly affect millions of workers and companies nationwide.
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