Argentina’s Senate has approved sweeping labour reforms backed by President Javier Milei, marking a major legislative victory for the libertarian leader.

The so-called “labour modernisation law” passed with 42 votes in favour, 28 against and two abstentions. The government says the reforms will stimulate investment, formal employment and productivity amid ongoing austerity measures.

Key provisions include:

• Extending the standard workday from eight to 12 hours

• New limits on the right to strike, requiring minimum services

• Relaxed hiring rules and changes to holiday entitlements

• Permission to pay salaries in foreign currency

Trade unions argue the measures weaken worker protections and ease dismissals. Protests in Buenos Aires have drawn thousands, with sporadic clashes outside Congress.

Recent polling shows Argentina divided: 48.6% support the reforms, 45.2% oppose them.

Since taking office, Milei has reduced monthly inflation to 2.9% and stabilised the peso, earning praise from the International Monetary Fund, though austerity policies continue to strain households.

ℹ️ Al Jazeera 

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A demonstrator holds a flag as police use a water cannon during a protest outside Argentina’s National Congress in Buenos Aires, Argentina February 27, 2026. REUTERS/Agustin Marcarian
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Argentina Senate approves Milei’s contentious labour modernisation law
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