On a Thursday morning, the Argentine Senate approved a comprehensive labor reform led by President Javier Milei's government after an extensive debate that commenced the previous afternoon. This approval was not without tension, as it coincided with mass protests outside the Congress, which resulted in several incidents. The reform underwent modifications, omitting previously proposed reductions in income tax and cuts to union funds, reflecting a compromise amid public resistance.

The core changes of the labor reform focus on the law of employment contracts, significantly altering the landscape of labor relations in Argentina. Key aspects of the project include increased flexibility in hiring conditions and substantial changes to severance pay structures. One major highlight is the reduction of employer contributions, a point that has sparked intense debate among legislators and labor representatives, as it could lead to changes in benefits for workers.

Despite concerns about potential impacts on wages and worker protections, the government defends the reform as a necessary step towards economic revitalization and labor market modernization. Observers are divided, with some arguing that the measures may enhance employment opportunities, while others caution that they could undermine the rights and earnings of workers, particularly in a context of rising inflation and economic uncertainty.