The Argentine Chamber of Deputies has passed a major labor reform initiated by President Javier Milei, which aims to amend various aspects of the existing labor framework. The project includes provisions for worker formalization incentives, measures to deter frivolous labor lawsuits, and focused efforts on job creation. Notably, a controversial change regarding leave regulations was excluded from this bill.

The proposed labor reform encompasses over 200 articles, addressing a myriad of legal adjustments and fiscal incentives aimed at medium-sized investments. The legislative change seeks to modernize the labor law in response to current economic conditions, promising a shift in the dynamics of labor justice and economic incentives in the job market. Since its introduction, the proposal generated significant discussion around its potential impact on workers' rights and protections.

As the bill now heads to the Senate, supporters argue that these reforms are necessary for enhancing employment opportunities, while critics raise concerns about potential negative implications for worker rights. The outcome of the Senate's deliberations will be pivotal as it determines the future direction of labor regulation in Argentina, reflecting the government's broader economic strategy under Milei’s administration.