Employment Law Overview Colombia

Introduction

Colombian labour law is governed mainly by the Labour Code, which dates from 1950. The applicability of these rules is done (directly) through the law.

Colombian labour conditions are often determined by mandatory rules not subject to parties’ modification, and most of these principles also have a constitutional hierarchy, together with the International Agreements or conventions that recognise human rights ratified by Colombia. The consequence of this situation is that employers cannot (even with the employee’s approval) provide worse conditions than those recognised by the law, the constitution or an international agreement or convention, that recognises human rights ratified by Colombia.

Efforts have been made to increase  flexibility to the Colombian labour market to align with globalized standards. Three main reforms to the labour rules have been made to accomplish this objective: the 50 Act of 1990, the 789 Act of 2002 and the 797 Act of 2003.

Key Points

• Employee-legislation in Colombia is divided (due to its importance) into a compilation of particular rules for each specialty: labour rules, social security, procedural rules and employment law.
• Even when employment contracts are generally regarded as indefinite term, Colombian labour law is flexible compared with other countries as it allows the use of flexible forms of employment without major restrictions.
• Colombian labour law provides high flexibility regarding dismissal. However, case law and affirmative action legislation have developed to provide greater protection to prevent possible discriminatory situations to specific population groups
• Foreigners are only allowed to work in Colombia through a work permit or with a residence permit if they are planning (or are currently) to stay permanently in the country.
• Constitutional actions (“Tutela”) demanding immediate protection of fundamental rights is an important source for labour norms, as a result of the interpretation of the written labour rules.

Legal framework

Labour law normativity is provided by the Constitution (Fundamental employees’ rights) and the law. Bills can only be issued by the Congress and/or the President in exercise of exceptional powers but does not allow for the municipalities and/or departments to issue normativity regarding labour matters. The Ministries as part of the executive branch, are allowed to issue Decrees to develop the content of a law but not to modify it or derogate it. In particular, the Ministry of Labour is the highest executive authority regarding labour matters.

The Pensions and Contributions Control Unit (UGPP by its initials in Spanish) plays also an important role as an audit governmental body, which exercises control regarding contributions to the social security system.

The main framework for labour law in Colombia is provided by the Colombian Labour Code (CST by its initials in Spanish) issued by the Legislative Decree 3743 of 1950. Despite its longevity, the Labour Code has been the subject to modifications mainly to add flexibility to the labour market and adjust Colombia´s rules to a more globalised world.

In 2015, the government issued the 1072 Decree (Regulatory Decree of the Labour Sector) to consolidate all existing labour normativity into a unique document, making them more accessible.

The Constitutional Court and the Supreme Court, in addition to the fact that Colombia has a continental legal system, play a key role in Colombian legal framework as the Constitution and the law establish precedents that are mandatory for inferior hierarchical judges to comply with.

New Developments

• Under Law 2101 of 2021, Colombia has gradually reduced the maximum working hours. As of July 15^th, 2024, the maximum legal workweek has been adjusted to 46 hours. Additional reductions will apply on July 15^th, 2025 (44 hours) and on July 15^th, 2026 (42 hours).
• The Law  2381 of 2024, Pension Reform, was approved by the Congress on June 2024 and will be applicable as of June 2025. This reform will guarantee a solidarity income for more than 2 million elderly people and workers who don´t reach pension legal requirements and have a social vulnerability condition.
• Labour reform is project presented by the government is currently under consideration in Congress. This reform bill aims to improve employees’ working conditions despite resulting in a significant increase of informality in Colombian Labour Market and additional costs for employers, including surcharges, severance payments, limitations on the use of fixed-term contracts, and various other measures.