On March 30, 2026, National Labor Court No. 63 issued a preliminary injunction sought by the CGT a declaratory action for certainty—registered in the Collective Proceedings Registry—and ordered the suspension of the effectiveness and application of numerous provisions of Law No. 27,802 on Labor Modernization.
The suspension shall remain in force until a final judgment is rendered in the pending unconstitutionality action or until the injunction is lifted. As a general matter, it applies to all employees, employers, and trade union organizations in the country governed by the Employment Contract Law and complementary regulations.
The court found that the legal requirements for suspending a statute had been met, namely: likelihood of success on the merits (fumus boni iuris), risk of irreparable harm due to delay (periculum in mora), and the public interest involved.
Among the provisions affected by the injunction—and whose application is hereby suspended, with the prior legal framework reinstated—are, without limitation:
- Reduction of the scope of the Employment Contract Law.
- Amendments to the conception of the in dubio pro operario principle and the principle of non-waivability of rights.
- Amendments to the presumption of the existence of an employment contract.
- Amendments to the legal framework governing joint and several liability.
- Amendments to the ius variandi regime.
- Amendments to the compensation scheme for fixed-term employment contracts.
- Amendments to the wage structure and fringe benefits regime.
- Amendments to the vacation regime.
- Amendments to the wording governing the calculation of dismissal compensation.
- Interest regime for pending lawsuits and installment payment of judgments.
- Regulation of Labor Assistance Funds (FAL).
- Regulation of the right to strike.
- Trade union limitations and prerogatives.
- Repeal of the telework law.
As can be seen, this is an injunction of extremely significant impact, effectively neutralizing the operation of the Labor Modernization Law in its current form. The National State will likely appeal the decision; however, it is important to note the legal uncertainty generated by rulings of this nature, given the constant changes in the rules governing the various stakeholders in the labor sphere.