Colombia: Labour Reform in Colombia: Congress Rejects the Proposal; the Government Announces Public Referendum

On Tuesday, March 18, the Seventh Commission of the Senate of the Republic decided to file the labour reform bill promoted by the national government. It was filed with eight votes in favour and six against.

The proposal aimed to change several parts of Colombia’s labour laws, such as how fixed-term contracts are used, increasing pay for night shifts, Sundays, and public holidays, and setting rules for work done through digital platforms. While trade unions and workers’ organisations supported the bill, the business sector didn’t. Many employers were worried that the changes could make it harder to create new jobs, increase informal work, and add too much pressure on small- and medium-sized businesses.

The congressmen who voted to file the bill argued that it would raise labour costs for employers, reduce flexibility in hiring, and had not been adequately discussed with the business sector. They also said the proposal lacked a solid technical analysis of its financial impact, which could put the country’s economic stability at risk.

This is the second time that the current government has failed to pass a labour reform, significantly impacting its relationship with opposition parties. In response, President Gustavo Petro announced plans to call a Public Referendum—a mechanism of citizen participation that will allow Colombians to decide on key elements of the bill. According to the President, the questions will focus on working hours and overtime pay.

If most citizens vote in favour of the referendum, the proposals could be brought back to Congress for further discussion. In light of this, some political parties have already announced that they will present new labour reform proposals to avoid a referendum process.

López & Asociados will continue to monitor these developments and inform you about any potential changes to Colombian labour law.