In a setback for President Javier Milei, a three-judge court has temporarily suspended the Argentina labor reforms he recently announced, AP reports.

These changes, unveiled in December as part of broad deregulation and austerity measures, were aimed at revitalizing Argentina's struggling economy.

The legal challenge, brought forth by the General Labor Confederation, argued that the alterations negatively impacted workers' rights.

Milei's decree included significant modifications to labor rules, such as extending the job probation period from three to eight months, reducing severance compensation, and allowing the possibility of dismissal for workers participating in blockades during certain protests.

Judge Alejandro Sudera, one of the three presiding over the case, stated that the administration overstepped its authority by decreeing labor changes without prior discussion and approval by Congress.

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President Javier Milei to Appeal as Argentina Labor Reforms Face Temporary Halt

President Milei is expected to appeal the court's ruling, which currently puts a temporary freeze on the proposed labor reforms, according to BBC.

These reforms aimed to extend the probation period for workers, decrease compensation for dismissals, and shorten pregnancy leave.

Upon assuming office last month, President Javier Milei emphasized the need for a "shock treatment" to pull the country out of its economic crisis, which is marked by triple-digit inflation and 40% of the population living in poverty.

In a speech on December 31, Javier Milei warned of a "social catastrophe of biblical proportions" if his reform proposals were blocked.

President Milei, a 53-year-old who secured victory in November with 55.65% of the vote, pledged during his campaign to reduce public spending and address what he termed "Argentina's economic decay."

However, the president has faced resistance from trade unions and left-wing groups who argue that his plans jeopardize hard-fought workers' rights, leading to protests in Buenos Aires.

Javier Milei's Unconventional Leadership Faces Skepticism and Comparison to Populist Figures

President Javier Milei's political ascent in November was characterized by unconventional campaign tactics, including wielding a chainsaw and raised eyebrows, per WION.

His economic proposals, such as advocating for the US dollar as the official currency and "detonating" the central bank, resonated with voters disillusioned with traditional politics.

While Javier Milei's win appealed to those frustrated with economic challenges, critics express skepticism about his untested leadership and unconventional policy proposals.

Comparisons to populist leaders like former US President Donald Trump and former Brazil President Jair Bolsonaro fuel concerns about the potential consequences of such unorthodox governance.

Since his inauguration on December 10, Javier Milei has devalued the country's currency by 50%, cut subsidies in transport and energy, and signaled non-renewal of contracts for over 5,000 state employees hired before his term, ABC News noted.

His overarching goal is to transform Argentina's economy and reduce the state's size to address escalating poverty and an expected annual inflation of 200%.

The temporary suspension of Argentina labor reforms adds another layer of complexity to Milei's ambitious economic agenda.

READ MORE: Argentina Sharply Devalues Currency 

This article is owned by Latin Post.

Written by: Bert Hoover

WATCH: Milei's 'mega-decree' labour reforms blocked by top court in Argentina - From Euronews