Overview
- Argentina’s main labor federation, the CGT, filed a constitutional challenge in Buenos Aires on Monday alleging the new law violates the principles of progressivity and worker protection.
- The statute, passed by the Senate on Friday, allows 12-hour shifts via hour banks, narrows severance calculations with installment payments, enables pay in foreign currency or in kind, curbs strikes, and elevates company or regional agreements over sector-wide deals.
- The Milei administration is preparing implementing regulations and a legal strategy, expecting the dispute over the reform’s scope to move through lower courts and potentially reach the Supreme Court.
- In Mexico, President Claudia Sheinbaum and Labor Secretary Marath Bolaños said the constitutional reform to a 40-hour week will be published in the federal gazette on Tuesday, triggering a gradual transition of 46 hours in 2027, 44 in 2028, 42 in 2029, and 40 in 2030 without salary cuts.
- Mexico’s Labor Ministry will deploy a mandatory electronic registry to track work hours and overtime starting after hour 40, reinforce digital inspections, cap four triple-rate overtime hours, and ban overtime for minors.