The labor reform promoted by the government of Javier Milei is advancing in its final stretch in Congress. After obtaining half a sanction in the Senate on February 11 and being approved with modifications in the Chamber of Deputies on February 20 (135 votes in favor and 115 against, with no abstentions), the project – called the Labor Modernization Law – returned to the Upper House for its final sanction.
The Government adjusts the last details to avoid surprises in the Senate, where the vote is scheduled for this Friday February 27. Official and legislative sources indicate that the ruling party has the necessary numbers after the favorable opinion quickly issued by the Labor and Budget and Finance committees, which accepted the modifications of Deputies – mainly the elimination of the controversial article 44, which reduced payments for medical leaves (from 100% to 75% or 50% in some cases) – to “shield” other key points such as the Unemployment Assistance Fund (FAL) and changes in compensations.
Keys to the Government’s fine adjustment
- Strategic elimination of art. 44: The ruling party gave in on this sensitive point to guarantee support from dialogue blocs and avoid fractures. Legislators such as Bartolomé Abdala (LLA) minimized the change and announced that the issue of “abusive” medical licenses will be taken up again in the ordinary period via a new law.
- Vote-by-vote negotiations: In the Senate, where the scenario is more fragmented, the team of Patricia Bullrich (head of the official bloc) and provincial allies managed to dispatch the opinion in hours after the half-sanction of Deputies. Pro-government senators anticipate approval “as a fact”, with emphasis on adding governors and dialogueists to arrive comfortably.
- Political timing: The sanction is sought just before the opening speech of Milei’s ordinary sessions (scheduled for March 1), to present the reform as a key triumph in the agenda of “modernization” and generation of formal employment.
Main changes in the project (post-modifications)
- Modifications in compensation: Exclusion of the bonus from the calculation of the compensation base and scheme for separations.
- Hour bank and formalization: Incorporation of mechanisms to reduce informality and workload.
- Unemployment fund (FAL): Maintained as collateral for compensation obligations.
- Working hours and hiring: Updates in modalities to “make more flexible” entry into white employment.
The CGT, for its part, chose not to mobilize on Friday – unlike the previous strike in Deputies – and will concentrate its response on judicial means: it will present an amparo for unconstitutionality on Monday, March 2, with a march to the Courts. The union center sees the rule as regressive, despite the adjustments.
With the Senate as the last filter, the Government prioritizes avoiding unforeseen events in a venue where every vote counts. Everything indicates that the Labor Modernization Law will be sanctioned this week, adding an important legislative victory for the ruling party at the start of 2026.
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