Argentine court declares Article 55 of Milei's Labor Reform unconstitutional

Published at: 16/03/2026 10:31 PM

The Labor Court No. 3 of La Plata declared article 55 of Law 27,802, known as Labor Reform or “Labor Modernization”, unconstitutional, on the grounds that its application violates the constitutional rights of workers. In this way, the Judiciary once again stopped a key article of the Labor Reform promoted by the Government of Javier Milei, TeleSUR reported.

The ruling determines that the modification of the compensation calculation should not be applied with criteria that ignore the loss of the value of the wage due to inflation or under parameters unfavorable to the worker.

The Platense resolution was issued just 10 days after the law came into force, and constitutes the second judicial setback faced by the rule promoted by the ruling party and its parliamentary allies.

The first adverse ruling occurred in the province of Córdoba, where Chamber Judge Ricardo Giletta also declared the same article unconstitutionality, arguing that it violates the guarantee of equality before the law, since he intends to apply an unfavorable compensation calculation to labor lawsuits initiated years ago.

In both cases, the courts considered that Article 55 introduces retroactive effects when attempting to modify Article 276 of the Employment Contract Act, affecting ongoing processes and the acquired right of workers.

With this decision, the Judiciary once again suspends the full implementation of the Milei Labor Reform, which the Government presents as a measure of modernization of the labor market, but which is being questioned in the provincial courts for its regressive effects on labor rights.

Mazo News Team