Ruling lifts injunction blocking over 80 articles of Javier Milei’s labor reform, enabling implementation despite ongoing union challenge

An Argentine federal court has overturned a precautionary measure that had suspended key parts of President Javier Milei’s labor reform, allowing the government to move forward with the contested legislation following a legal challenge by the General Confederation of Labour (Confederación General del Trabajo, CGT, in Spanish).

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Federal judge Macarena Marra Giménez, head of the 12th Federal Administrative Contentious Court, annulled the injunction that had blocked the application of more than 80 articles of the government’s labor overhaul. The ruling follows a petition filed by the CGT.

The decision enables the executive branch to proceed with changes affecting severance payments, overtime rules, working hours, and the transfer of labor jurisdiction to the City of Buenos Aires. The reform is officially referred to by the government as «Modernización Laboral».

Marra Giménez stated that maintaining the suspension would amount to anticipating a judgment on the constitutionality of the law without a full examination of the rights involved.

The legal dispute intensified after the Casa Rosada sought to move the case from the labor court system—where judge Raúl Ojeda had issued the original injunction on March 30—to the federal administrative contentious jurisdiction. The Federal Chamber later upheld Marra Giménez’s jurisdiction and ordered the transfer of all related filings to centralize the proceedings.

In parallel, Chamber VIII of the National Labor Appeals Court suspended the effects of the initial injunction without ruling on its substance, a move that facilitated the government’s position. The Ministry of Justice subsequently supported the continuation in office of judge Víctor Arturo Pesino, a member of that chamber who has reached the retirement age of 75.

The Supreme Court of Justice, composed of Horacio Rosatti, Carlos Rosenkrantz, and Ricardo Lorenzetti, rejected a per saltum request from the government aimed at accelerating the process. However, the ruling did not alter the status of the reform, which remains in force due to lower court decisions.

The CGT argues that the reform weakens labor protections, expands employer authority, and restricts collective union action. The union has also challenged the composition of Chamber VIII, keeping the jurisdictional dispute active despite the law now being operational.

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