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Justice in Argentina suspends President Javier Milei’s labor reform, but the government appeals and doubts about its validity grow

In Argentina, an appeals court suspended the labor reform contained in President Javier Milei’s decree of necessity and urgency (DNU) No. 70/2023. While the government prepares to appeal the decision, the execution of measures related to the labor aspect included in the decree is temporarily halted.

The Labor Appeals Chamber considered that “the ‘necessity’ of adopting so many measures would not be objectively evident,” according to the document signed by two judges of the Chamber, José Alejandro Sudera and Andrea García Vior. A third magistrate, María Dora González, dissented, stating that the court does not have jurisdiction, and the case should be transferred to the administrative litigation court.

The ruling states that there are no reasons alleged that constitute an urgency “to avoid the proper intervention of the Legislative Power regarding substantive legislation.” The tribunal cited the Constitution emphatically: “The National Constitution does not allow choosing discretionary between passing a law or imposing certain material contents more quickly through a decree.”

Now, what does the labor chapter of DNU 70/2023, currently suspended by the justice, establish? Regarding this, there are two main issues that have generated controversy:

  • 8-month probation period The DNU extends the probationary period in an indefinite-term employment contract from 3 to 8 months, stating that “it will be considered probationary during the first 8 months of validity.” Additionally, the decree states that “either party may terminate the relationship during that period, without cause and without the right to compensation.”

Labor lawyer Alexander Rodríguez sees this point of the decree as a solution that “should be positive, as it encourages the entry of workers.” According to him, “companies do not hire personnel justifying that labor law is too demanding. So, instead of facilitating the entry of workers, their exit is facilitated. If the probation period is extended, there would be no fines for undeclared work or withheld contributions. Therefore, if you want more staff, you should facilitate entry, not exit.”

In contrast, labor lawyer Leandro Recalde argues that “the probationary period is a time granted to the employer to assess the suitability of the employee and gives them the possibility to terminate the employment relationship once that period is over, without the possibility of paying compensation.” Recalde asks, “How much time is really necessary to assess the employee’s suitability? What they are trying to do with this decree is distort that probationary period to eliminate or degrade the compensatory institute.”

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  • Severance pay Milei’s DNU states: “In cases of dismissal without just cause by the employer, with or without prior notice, and after the probationary period has elapsed, the employer must pay the worker severance pay equivalent to one month’s salary for each year of service or fraction exceeding 3 months, taking as a basis for calculation the best monthly, normal, and habitual remuneration earned during the last year or during the time of service if less.”

In this regard, Recalde considers that the basic objective of the DNU is to “lower the amount of severance pay.” In this aspect, he emphasized: “The DNU reduces the compensation by attacking how the remuneration or the calculation base for compensation is calculated. That is, if the Labor Contract Law took the best monthly, normal, and habitual remuneration, the DNU excludes the Christmas bonus, semi-annual and annual bonuses, and, in the case of variable remuneration, the best remuneration is not taken, but an average.”

Labor Secretary Omar Yasin declared weeks ago on the news channel La Nación + (LN+) that the DNU “is truly an instrument to generate employment” and that “it does not reduce any worker’s rights.” Regarding severance pay, Yasin argued that the DNU includes “an objective cause for dismissal, which is participating in a block against an employer, causing damage to the employer, the company, or third parties, and, fundamentally, preventing a worker from going to his workplace and not adhering to the strike.”

A topic that has generated controversies and disagreements among different representatives of labor law has to do with the unemployment fund. In statements to LN+, Yasin stated that “another positive aspect of the DNU is the possibility of creating an unemployment fund or termination fund.” As the head of the Labor Secretary established, the termination fund is created by collective agreement. The worker will turn to that fund if dismissed to immediately collect compensation without delay.

“The most serious thing that the decree provides is the possibility that through collective bargaining, unions and business chambers can repeal the compensation system and create series funds that do not adequately protect against dismissal,” argues Recalde. From another perspective, labor lawyer Alexander Rossi maintains that the indemnity resolution by collective agreement “does not make sense” because each business and union sector will have its own agreement.

Yasin also stated that the new DNU generates compensation for discriminatory dismissal, considering sexual, ethnic, or religious orientation. In this regard, the head of the Labor Secretary argued that, in these cases, compensations increase by 50% or 100%, according to judges.

Hours after the news of the suspension of the labor reform included in the DNU became known, it was reported that the State would appeal the precautionary measure. According to a source from the Ministry of Justice of the Nation, the presentation was being prepared by the Treasury Solicitor’s Office of the Nation, led by Rodolfo Barra, a former judge of the Supreme Court. In this regard, the Ministry argues: “They are ignoring the criterion adopted by all other courts in the country, both in the city and in the interior, which sent the case to the natural and universal judge.”

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Barra said this Wednesday in an interview on Radio con vos that “the National Labor Appeals Chamber has a bias identified with some sectors that could have been affected by the DNU, which acted outside its jurisdiction.” The Treasury Solicitor anticipated that they will take the discussion first “in the administrative litigation court,” and if they are not successful, they will go to the Supreme Court.

Now, is the precautionary measure annulled with the appeal? For labor law specialist Jorge Fontán, the State required a “reconsideration appeal” for the same appeals chamber to review the precautionary measure. In this way, Fontán explained, “After the review, that appeal goes to the Supreme Court.” The Supreme Court will deal with all precautionary measures, but when the judicial recess or vacation, during which judicial activities cease between January 1 and 31 in Argentina, ends. In fact, the court that granted the precautionary measure is a holiday court. So, as Fontán said, the Supreme Court will deal with all precautionary measures when the judicial recess ends. In this way, given that the precautionary measure does not have a suspensive effect, it remains in force according to Fontán.

For labor lawyer Alexander Rodríguez, there are two scenarios: on the one hand, the decree remains suspended until the Supreme Court says otherwise. On the other hand, “A direct presentation of the Executive Power to the Supreme Court is possible, to immediately resolve the issue due to institutional gravity.”

International

Netanyahu: “Today it’s Tel Aviv, tomorrow could be New York”

Since Friday, Israel has struck key nuclear and military facilities in Iran, killing top commanders and nuclear scientists. In response, Iran has launched barrages of missiles.

Seeking to explain the strikes to U.S. citizens, Israel’s key ally, Prime Minister Benjamin Netanyahu gave lengthy interviews to American media, describing the offensive as “a battle of civilization against barbarism.” In his conversation with ABC News, he defended the attacks to “disarm” Iran and likened Supreme Leader Ali Khamenei to “a modern-day Hitler.”

When asked about U.S. President Donald Trump’s reported veto of an Israeli plan to assassinate Khamenei over concerns it would escalate the conflict, Netanyahu replied: “It won’t escalate the conflict — it will end the conflict.”

He did not confirm whether Khamenei is an Israeli target. “Israel does what it must,” Netanyahu simply stated.

He accused Khamenei of harboring “insane, antisemitic fanaticism.”
“He’s like a modern Hitler. He won’t stop, but we’ll make sure he doesn’t have the means to act on his threats,” Netanyahu added.

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“Iran wants an ‘eternal war,’ and they’re pushing us to the brink of nuclear conflict,” he warned.

“What Israel is doing is actually preventing it — ending this aggression. We can only do that by confronting the forces of evil,” the Prime Minister continued.

“Today it’s Tel Aviv, tomorrow it could be New York,” Netanyahu told ABC’s Jon Karl.

To the Israeli leader, pushing back against Iran’s nuclear ambitions is “preventing the most horrific war imaginable and… bringing peace to the Middle East.”
“That will only be possible if Iran is defeated,” he concluded.

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International

Panama supports Morocco’s autonomy plan as sole solution for Western Sahara dispute

Panama, a non-permanent member of the United Nations Security Council, has declared Morocco’s autonomy initiative as “the most serious, credible, and realistic basis” and “the only solution for the future” to resolve the regional dispute over the Moroccan Sahara.

This position was expressed in a joint statement signed on Monday, June 16, in Rabat, following a meeting between Morocco’s Minister of Foreign Affairs, African Cooperation and Moroccan Expatriates, Nasser Bourita, and the Minister of Foreign Affairs of the Republic of Panama, Javier Martínez-Acha Vásquez, during his official visit to Morocco.

At a press conference following the meeting, the Panamanian foreign minister emphasized that the autonomy initiative proposed by Morocco in 2007 “should be the only solution for the future,” reiterating Panama’s clear support for the plan as a means to reach a lasting resolution to the dispute.

Panama’s support comes after the country severed all ties with the so-called “SADR” (Sahrawi Arab Democratic Republic) in November 2024.

In the same joint statement, Morocco and Panama reaffirmed their commitment to the principles of sovereignty and territorial integrity.

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Both nations also reiterated their shared desire to further strengthen bilateral relations, highlighting the excellent ties of friendship and solidarity between the two countries. They agreed on the need to continue consultations and assess their cooperation in order to enhance and deepen it.

The two nations affirmed that their cooperation is based on the principles of peaceful coexistence, democracy and good governance, solidarity, transparency, mutual respect, human rights, and international humanitarian law, as well as the rejection of unilateral sanctions.

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Internacionales

Tropical storm Erick expected to become hurricane as it nears southern Mexico

The National Hurricane Center (NHC) reported that Tropical Storm Erick is currently located 460 kilometers (about 285 miles) off the coast of Puerto Ángel, Oaxaca, with maximum sustained winds of 75 kilometers per hour (around 46 mph).

According to the latest forecast, Erick is expected to strengthen into a hurricane later tonight or early Wednesday. Heavy rains are forecast for the southern states of Guerrero, Oaxaca, and Chiapas.

Mexican President Claudia Sheinbaum urged residents in coastal areas to stay alert and follow updates from Civil Protection authorities.

“There is a chance that it could become a Category 2 hurricane and make landfall tomorrow, Wednesday. We ask everyone along the coasts of Chiapas, Oaxaca, and southern Guerrero to stay informed,” she posted on social media platform X.

Due to its geographic location, Mexico faces annual threats from tropical cyclones on both its Pacific and Atlantic coasts, typically between May and November.

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In October 2023, Hurricane Otis rapidly intensified to a Category 5 storm before striking the port city of Acapulco, leaving widespread devastation, over 50 dead, and around 30 missing.

More recently, in September 2024, the Pacific coast was hit twice by Hurricane John, which reached Category 3 and caused at least 15 fatalities, mostly in Acapulco.

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