Colombia's Controversial Labor Reform Brings Big Changes

Colombian President Gustavo Petro signed a landmark labor reform on June 25, introducing major changes to employment regulations. The reform aims to enhance job stability and worker protections, impacting both formal workers and gig economy employees.

HR Policy Global’s Take: The new rules could increase labor and operation costs for employers operating in Colombia, while creating compliance challenges and more employee disputes in the future. Additionally, the reform signals a legislative victory for Petro, setting a precedent for his approach to future initiatives in healthcare, utilities, and tax reform.

Main changes include: 

• Sunday and Holiday Work Surcharge: The surcharge for work on Sundays and holidays will gradually increase from 75% to 100% by 2027.
  • July 1, 2025: 80%
  • July 1, 2026: 90%
  • July 1, 2027: 100%
• Night Work: Night work hours now start at 7:00 P.M. instead of 9:00 P.M., with a 35% surcharge.
• Overtime Authorization: Employers no longer need prior authorization from the Ministry of Labor for overtime but must keep daily records.
• Fixed-Term Employment Contracts: Max duration for fixed-term or short-term contracts is now four years.
• Apprenticeship Contracts and Quota: Apprentices receive standard labor benefits, and companies opting to pay a quota instead of hiring apprentices will pay 1.5x the minimum wage per non-hired apprentice.
• Disciplinary Procedures: Employers must provide a minimum of five days’ notice before starting disciplinary procedures.
• New Mandatory Paid Leaves: Introduces paid leaves for medical appointments, school meetings, and legal appointments.
• Teleworking: Telework is now possible for employees abroad, with mandatory medical insurance; hybrid teleworking is also allowed.
• Disability Quota: Companies must hire a minimum number of employees with disabilities based on company size.
• Non-Discrimination and Inclusion: New measures to promote workplace diversity and inclusion.

Moving forward: While the reform represents a significant step in improving workers’ rights, its economic implications for businesses remain uncertain. Employers should keep an eye on new developments and feel free to contact us for any questions.