LEGAL BULLETIN REFORM LABOR

LABOR REFORM BILL CLOSE TO BECOMING LAW

A labor reform bill in Colombia is nearing its final stage in Congress and introduces several structural changes that could significantly impact the way companies manage employment. These range from adjustments to working hours and new leave entitlements to stricter regulations on subcontracting. For companies operating in Colombia, it will be essential to clearly understand the scope and potential impact of the reform, should it be enacted. Below are the main changes to take into account:

1. Open-Ended Contracts as the General Rule

Open-ended employment contracts are reaffirmed as the general standard. Fixed-term or task-specific contracts are only permitted under exceptional and temporary circumstances. Furthermore, a provision is introduced allowing employees to voluntarily provide at least 30 days’ notice of resignation without penalty for failure to do so.

 

2. Fixed-Term and Task-Specific Contracts

The maximum duration for fixed-term contracts is extended to five (5) years. The requirement of a written format remains in force. Renewals are limited: after the fourth renewal of a contract lasting less than one year, any further renewal must be for at least one year. If formal requirements are not met, or if the employee continues providing services after the completion of the task, the contract is presumed to be indefinite.

 

3. No Changes to Severance Rules

The bill, as approved in the third debate, does not alter current severance rules for termination without just cause. The existing framework remains unchanged.

 

4. Disciplinary Procedure

The bill clearly regulates the procedure for imposing disciplinary sanctions, establishing the employer’s obligation to:

• Provide written notice of the facts.
• Disclose the evidence supporting the infraction.
• Allow the employee for no less than five (5) days to exercise their right to defense.
• Issue a reasoned decision.

This procedure applies solely to sanctions such as written warnings, suspensions, or fines, and is intended to guarantee due process in the employment relationship.

 

5. Reinforced Job Stability: Pre-Retirees and Persons with Disabilities

The bill maintains special protection for employees under reinforced job stability, particularly in the following cases:

a. Pre-Retirees:

Employees who are within three (3) years of meeting pension eligibility requirements are protected. This includes both the public pension scheme (based on weeks and age) and the individual savings scheme with solidarity (based on capital or minimum guarantee). Termination of employment in such cases requires prior authorization from the Ministry of Labor.

b. Employees with Acquired Disabilities:

Employees who, during the course of employment, develop a physical, sensory, psychological, or intellectual condition that substantially limits one or more major life activities are protected.

A distinction is made between:

• • Moderate to severe disabilities (as evidenced by medical records, occupational health assessments, or regional medical boards): these trigger reinforced protection.
  • Mild disabilities or those pre-existing the contract: these do not trigger reinforced stability.

Employers may only dismiss the employee if they can demonstrate that reassignment is not feasible and must obtain prior authorization from the Labor Inspector or a labor judge.

Note: If the disability was pre-existing and recorded in the employment contract, or if the employee was hired specifically due to that condition, reinforced stability does not apply.

 

6. New Paid Leaves: Medical Appointments and Legal Matters

The approved text introduces new paid leave entitlements, which the employer must grant upon submission of proper documentation:

• Medical appointments: Covers both emergencies and scheduled visits, including those related to menstrual cycle conditions, chronic illnesses, or ongoing treatments.
• Court or administrative proceedings: Covers attendance at hearings, proceedings, or other obligations stemming from legal processes or authority requirements.

These leaves may not be deducted from vacation or compensatory days and must be treated as regular work time.

 

7. Paternity Leave: No Changes

Contrary to earlier proposals, the duration of paternity leave remains unchanged at two (2) paid weeks, as established in Law 2114 of 2021. No additional modifications are introduced in terms of duration, conditions, or eligibility.

 

8. Subcontracting and Temporary Staffing Agencies

Regulations governing the use of intermediaries and temporary employment become stricter:

• Temporary staffing agencies may not be used to meet permanent staffing needs of the contracting company.
• If this limitation is violated, the contracting company will be deemed the actual employer, with full associated obligations.
• Temporary agencies found engaging in fraudulent, evasive, or unlawful labor practices may lose their operating license.

 

9. Telework, Remote Work, and Digital Connectivity Allowance

The bill consolidates various remote work modalities, including:

a. Telework:

• Performed partially or fully outside the employer’s premises.
• May involve hybrid arrangements (in-person and remote days).
• Requires a written agreement, occupational risk guarantees, and respect for digital disconnection rights.

b. Working from Home:

• Defined as an occasional and temporary modality that does not alter the nature of the contract.
• Applies when the employer instructs it due to temporary circumstances.

c. Remote Work:

• Performed exclusively in virtual environments from any location.
• Involves a fully digital employment relationship, including hiring and compensation.

d. Digital Connectivity Allowance:

• Amount: Equivalent to the current transportation subsidy (COP $162,000 in 2024).
• Applies to employees earning up to two (2) minimum monthly wages and working remotely.
• Not considered salary but included for purposes of severance and social security contributions.

 

10. New Working Hours and Surcharges

Upon enactment, the new workweek will be implemented as follows:

• Workweek: 42 hours, distributed over 4 to 6 days.
• Daytime hours: 6:00 a.m. to 7:00 p.m.
• Nighttime hours: 7:00 p.m. to 6:00 a.m.
• Sunday surcharge: Set at 100%, with gradual implementation—80% in 2025, 90% in 2026, and 100% in 2027.

The “Family Day” is no longer mandatory.

11. Additional Bonus for Economic Growth

Effective January 1, 2027, a new statutory bonus will be introduced in addition to the standard one, subject to the employer’s economic performance:

• It will be paid when the employer’s accounting-based economic growth exceeds 4% compared to the previous fiscal year.
• The amount will vary based on company size:
  • 20% of one statutory monthly minimum wage (SMLMV) for microenterprises and individuals.
  • 30% of one SMLMV for small and medium-sized enterprises.
  • 40% of one SMLMV for large enterprises.

This bonus will be deductible from the employer’s income tax. The government will regulate the formula for measuring economic growth and productivity, as well as the technical parameters.

Important: Employer and employee may agree to defer its payment by mutual consent.

12. Apprenticeship Contract: Key Amendments

Article 81 of the Labor Code is amended, redefining the special nature and terms of the apprenticeship contract:

• Legal Nature: Remains a special form of labor law, non-subordinate, focused solely on training.
• Duration: Maximum of two (2) years, divided into theoretical and practical phases.
• Dual Training Scheme:
  • Year 1: At least 75% of the minimum wage.
  • Year 2: 100% of the minimum wage.
• Traditional Training Scheme:
  • Theoretical phase: At least 75% of the minimum wage.
• Practical phase: 100% of the minimum wage.
• University Students: If the apprentice studies and works (minimum 24 hours per week at the company), their stipend must be no less than one (1) minimum monthly wage, regardless of the training scheme.

Mandatory Affiliations

During the practical or dual phase, apprentices must be enrolled in:

• Occupational risk insurance based on the position’s risk level.
• Health and pension systems under the dependent worker scheme.

Scope and Types of Eligible Training
Applies to:

• Non-formal technical training.
• Professional technicians, technologists, and university professionals.
• SENA apprentices.

Monetization of the Apprenticeship Quota

• Companies failing to meet their apprenticeship quota must pay SENA 1.5 times the minimum wage monthly per unfulfilled apprentice.
• Exemptions apply to companies that requested apprentices but were not supplied with candidates by educational institutions.
• 25% of these funds will support technical and technological training for rural youth; another 25% will go to the Entrepreneurship Fund.

13. Statute of Limitations on Labor Claims

The bill introduces a clear statute of limitations framework:

• Labor claims expire three (3) years from the date the obligation becomes due or from contract termination.
• Interruption: A written claim interrupts the statute of limitations, which only restarts for a new three-year period.

CUALQUIER INQUIETUD GUSTOSOS LA ATENDEREMOS.

La información contenida en el presente boletín es de carácter estrictamente informativo. Por lo tanto, para la toma de decisiones particulares sobre los temas que se comentan, se deberá contar con el auxilio del asesor experto en el tema pertinente.

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