Colombia: Decree 0581 of 2026 Establishes a New Framework on Illegal Outsourcing and Labour Intermediation

On June 5, 2026, the National Government issued Decree 0581 of 2026, establishing inspection, prevention, corrective, and formalization measures regarding illegal outsourcing and labour intermediation in Colombia. While the decree does not prohibit outsourcing or labour intermediation, it introduces new rules that significantly affect how labour authorities will assess these arrangements and enforce compliance.

The new framework incorporates legal presumptions, evidentiary indicators, restrictions on temporary staffing arrangements, and enhanced corrective and sanctioning powers for labour authorities.

Restrictions on Outsourcing Arrangements

One of the decree’s most significant developments is the introduction of a strengthened presumption of employment.

Under the new framework, when workers provide services through third parties in activities considered permanent, a legal presumption arises that an employment relationship exists between those workers and the beneficiary company if the limits established by the decree are exceeded. Although this presumption may be rebutted, it effectively shifts the burden of proof to the beneficiary company, which must demonstrate the absence of subordination, the contractor’s technical, administrative, financial, and managerial autonomy, the contractor’s independent operation, and the objective reasons supporting the outsourcing arrangement.

The decree also revives the discussion regarding permanent activities, defining them as the principal activities related to the company’s corporate purpose or ordinary course of business.

Indicators of Illegal Outsourcing

To guide labour inspections, the decree establishes a catalogue of twenty-six indicators that may be considered when assessing the legality of outsourcing arrangements.

The first category includes ten indicators related to the absence of an independent business organisation on the part of the contractor. These indicators focus on whether the contractor lacks its own production resources, infrastructure, technology, financial capacity, administrative structure, licenses, permits, or operational autonomy necessary to perform the contracted services independently. Authorities will also examine whether the arrangement effectively conceals a mere supply of personnel.

The second category includes sixteen indicators related to potential subordination to the beneficiary company. Labour inspectors may evaluate whether the beneficiary exercises effective control over the contractor’s personnel through instructions, schedules, workplace assignments, disciplinary measures, leave approvals, or decisions regarding continuity of service. The decree also highlights factors such as economic and operational dependence, including situations where the beneficiary provides tools, equipment, materials, technology, benefits in kind, or assumes travel expenses, suggesting that workers are functionally integrated into the beneficiary’s organisation rather than providing autonomous services.

These indicators will play a central role in labour inspections and investigations.

New Restrictions on Temporary Services Companies

The decree also introduces important restrictions regarding the use of Temporary Services Companies (Empresas de Servicios Temporales – EST).

It reiterates that temporary staffing arrangements may only be used in the three situations expressly authorised under Article 77 of Law 50 of 1990: occasional, accidental, or temporary work; replacement of employees during vacations, leave, or incapacity; and temporary increases in production, transportation, sales, or seasonal demand. In the latter case, the service may only be used for the strictly necessary period and may not exceed six months, renewable for an additional six months.

In addition, in line with the Labour Reform, contracts executed with assigned workers must expressly identify the specific cause justifying the service, the user company, the temporary services company, the purpose of the assignment, applicable terms, and the personnel involved.

The decree further provides that if the circumstances justifying the temporary service continue after the authorised period expires, the user company may neither extend the arrangement nor engage another temporary services company to perform the same activities. In such cases, the user company may be deemed the direct employer. Likewise, the successive rotation of different temporary services companies to cover the same service is expressly characterised as illegal labour intermediation.

Corrective Measures and Sanctions

Where labour authorities identify illegal outsourcing or labour intermediation practices, administrative or judicial authorities may order a range of corrective measures.

These measures may include labour formalization, regularization of employment and social security conditions, suspension or termination of irregular civil or commercial contracts, compliance plans, and temporary suspension of activities. The decree also establishes joint and several liability between the user company and the temporary services company for labour obligations arising from illegal intermediation arrangements.

Companies involved in these practices may face successive fines of up to 5,000 monthly minimum wages. The Ministry of Labour also retains authority to revoke operating licenses of temporary services companies, suspend activities where illegal outsourcing affects occupational health and safety, and increase sanctions by up to 50% in cases of repeated violations, including temporary suspension of activities for up to six months.

Notably, the decree refers to situations where illegal outsourcing has been “verified” rather than definitively declared through a final administrative or judicial decision, raising the possibility that certain corrective measures could be imposed during the course of an investigation or inspection process.

Legal Challenges and Areas of Controversy

The decree is expected to generate significant legal debate.

Among the concerns identified are the creation of legal presumptions through a regulatory decree, the granting of powers to the Ministry of Labour that could be interpreted as declaratory in nature, the interaction of labour formalization agreements with existing statutory rules, the potential modification of principles governing labour solidarity under Article 35 of the Labour Code, and the continuing uncertainty surrounding the definition and scope of permanent activities.

Although these issues may eventually be reviewed by the courts, the decree remains enforceable unless and until it is annulled through judicial proceedings.

Practical Considerations for Employers

Given the increased inspection powers and the burden-shifting mechanisms introduced by the decree, employers should review their outsourcing structures and conduct periodic audits of contractors to verify their genuine operational autonomy and compliance with the criteria established by the regulation.

Companies should also identify and document the activities being outsourced, establish protocols for responding to labour inspections, and review compliance with the rules governing temporary services companies, including the content of contracts executed with assigned workers.

Conclusions

Decree 0581 of 2026 represents one of the most significant regulatory developments in recent years concerning outsourcing and labour intermediation in Colombia. While outsourcing remains lawful, the decree substantially increases the level of scrutiny applicable to these arrangements through new presumptions, extensive indicators of illegality, restrictions on temporary staffing arrangements, and expanded corrective powers for labour authorities. As a result, employers should carefully evaluate existing contractor relationships, strengthen documentation supporting contractor autonomy, and prepare for a more intensive inspection and enforcement environment under the new regulatory framework.