Argentina's labor reform faces multiple court setbacks

Argentina’s 2024 labor reform law (Law 27.802) has encountered two successive judicial setbacks. The Federal Administrative Litigation Chamber (Sala IV) upheld a lower‑court decision rejecting the CGT’s request to reinstate a precautionary measure that would have suspended 82 articles of the law. Judge Macarena Marra Giménez left the reform in force while a constitutional challenge proceeds.

In a separate case, Federal Judge Herman Mendel ordered the immediate suspension of articles 131 and 133 of the same law and of articles 5‑7 of Decree 407, at the request of the truck drivers’ union led by Hugo Moyano. The judge ruled that the decree exceeded its regulatory authority and violated the Argentine Constitution. The injunction preserves benefits under the collective bargaining agreement 40/89, including burial insurance, widow’s subsidies and health coverage, pending further litigation. These rulings add legal uncertainty for employers and unions as the government seeks to implement the reform.