A judge has temporarily blocked a portion of Argentina’s recently passed labor reform law, halting the transfer of national labor courts to the city of Buenos Aires. The ruling, issued Tuesday, March 17, 2026, throws a wrench into President Javier Milei’s efforts to reshape the country’s legal landscape and signals potential challenges to the broader reforms.
National Labor Judge Herman Mendel accepted a precautionary measure filed by the Union of Employees of the National Judiciary (UEJN), led by Julio Piumato, according to reports from Clarín. The move underscores the growing opposition to Milei’s sweeping economic and legal changes.
“I RESOLVE: The suspension of all effects of the Agreement for the Transfer of Judicial Function in Labor Matters from the National Scope to the Labor Justice of the Autonomous City of Buenos Aires, celebrated between the National State and the Autonomous Government of the City of Buenos Aires, integrated as Annex I of law 27.802, until a final sentence on the merits is issued,” Judge Mendel stated in his ruling.
The decision suspends articles 90 and 91 of the labor reform, which outlined the transfer of labor courts and the associated agreement. However, the suspension is not permanent. The national government – named as the defendant in the case – has the right to appeal the decision and has been given three days to submit a report responding to the claims.
The question of which court has jurisdiction over the case is also under debate. The Public Prosecutor’s Office has argued that the case should be transferred to the Federal Administrative Court. The Confederación General del Trabajo (CGT) previously filed a similar claim with that court, but it was rejected, as La Politica Online reported.
The transfer of labor courts, approved by Congress as part of the labor reform, would have shifted some national labor tribunals to the city of Buenos Aires. This move was part of a broader transfer agreement with the national government, previously endorsed by the Supreme Court of Justice of the Nation in several rulings.
However, the law also stipulated the elimination of 30 vacant judgeships, without addressing the fate of employees and officials currently working in those positions. This aspect of the reform was specifically challenged by the UEJN in its legal complaint.
The UEJN argued that the “Cafiero Law” regarding the autonomy of the city of Buenos Aires envisioned a transfer of justice, not the elimination of a portion of it. The union also contends that the reform violates the labor stability of its members and that the transfer was not included on the agenda during the extraordinary congressional sessions where the labor reform was approved.
The transfer is also fueled by political tensions. The national government of Javier Milei and the city government of Jorge Macri view the labor courts as leaning towards Peronism and favoring employees with rulings unfavorable to businesses. The transfer aims to establish a more business-friendly justice system, a shift that has already been seen with the Supreme Court’s recent rulings on severance and workplace accident claims.
In his resolution, Judge Mendel agreed with the UEJN’s concerns, stating that “the approach adopted by the National Executive Branch, with respect to the Agreement for the Transfer of Judicial Function in Labor Matters from the National Scope to the Labor Justice of the Autonomous City of Buenos Aires…was not compatible with the expressly established procedure” in the transfer law.
The judge also expressed concern that the agreement approved by Congress “is susceptible to increasing day by day” the closure of courts due to judges leaving their positions.
