The Argentine Senate has approved a major package of labor reforms championed by President Javier Milei, marking a significant milestone in his administration's ongoing effort to deregulate the national economy. The legislative package, which faced intense debate from opposition parties and prominent trade unions, represents the most comprehensive rewrite of the country's employment laws in decades. Supporters argue the changes are essential to reviving the private sector and encouraging businesses to hire more workers.

A cornerstone of the approved legislation is the substantial extension of the employee trial period. Under previous regulations, companies were limited to a three month probationary period for new hires. The reform extends this baseline trial period to six months, with further provisions allowing micro enterprises to extend probation for up to one full year. This measure aims to give employers more time to evaluate new personnel before committing to permanent employment contracts.

Additionally, the reforms introduce a voluntary severance system designed to replace traditional, costly redundancy payouts. Employers can now choose to establish specialized termination funds, a structure modeled after the system currently used in the construction industry. This setup allows businesses to make regular contributions to an individual fund, which workers can then draw from upon leaving the company, providing predictable costs for businesses while maintaining financial safeguards for workers.

To address the vast informal economy in Argentina, the legislation also includes a registration amnesty for business owners. Under this program, employers who officially register previously informal workers will see past fines and penalties waived. While labor organizations warn that these sweeping adjustments could weaken job security and make dismissals easier, the administration remains confident that lowering hiring risks will stimulate investment and create stable employment opportunities over the long term.