New labor reform

At a glance

• The Colombian Labor Reform came into effect on June 25, 2025.
• The reforms a wide reaching and include amendments on employment contracts to flexible working schedules.
• Some elements of the Labor Reform come into effect on December 25, 2025 and June 25, 2026. 

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This article has been reproduced with the permission of Diana Zuleta Martínez at Martinez, our partnered firm in Colombia.

The Labor Reform has been enacted and introduces the following relevant changes:

Term of the employment contract

Generally, the employer must hire the employee under an indefinite-term contract.

In specific circumstances, the employer can hire employees under (1) a fixed-term contract that can last up to a maximum of four years including renewals, and (2) a contract for a specific task or service, which must be in writing and must detail the task.

If the employer fails to comply with the conditions for a fixed-term contract or an employment contract for job or task, these contracts will be considered indefinite-term contracts from the outset.

Disciplinary process

A disciplinary process will be mandatory for the imposition of disciplinary sanctions. The process must include the following stages: (1) formal notification of the opening of the process, (2) written indication of the facts, acts, or omissions that motivate the process, (3) disclosure of evidence, (4) indication of the period for defense with a minimum of five days, (5) reasoned decision, (6) proportional imposition of the sanction, and (7) possibility to appeal the decision.

However, it will not apply to domestic employees nor to micro and small enterprises with fewer than ten employees, although due process must still be respected.

Internal work rules

The employer must update the 'internal work rules' within 12 months, by June 25, 2026), and it must be placed in two visible locations and through virtual means.

Daytime and nighttime work

Night work will start from 7pm to 6am. Accordingly, the employer must recognize the 35% night surcharge starting at 7pm.

This will be applicable from December 25, 2025.

Work schedule

The law reinstates the daily work schedule limit of eight hours, which had been repealed by Law 2101 of 2021.

It also outlines specific exceptions to this limit, including flexible work arrangements, hazardous or unhealthy work conditions, employment of minors, and rotating shift schedules.

Overtime

The employer will no longer need to request prior authorization to require overtime work. However, the employer must keep a detailed record of overtime work and provide it to the employee.

For non-payment of overtime, the Ministry of Labor will suspend the employer’s right to require overtime work for six months.

Work on mandatory rest days or holidays

The surcharge will amount to 100% of an employee’s regular salary. However, this increase will be implemented gradually: 80% beginning July 1, 2025; 90% starting July 1, 2026; and reaching 100% on July 1, 2027.

Flexible work schedules for employees with family caregiving responsibilities

The parties can agree on flexible schedules or the use of information and communication technologies to balance family life when the employee has caregiving responsibilities for the elderly; children; persons with disabilities; or persons with catastrophic, severe chronic, and or terminal illnesses within the second degree of consanguinity, first of affinity, or first and second civil degree; or for any person who depends exclusively on the caregiver for lack of other family members with certification of caregiver status.

Flexibility for employees caring for persons with disabilities

Employees who care for persons with disabilities within the first or second degree of consanguinity or civil degree or first of affinity will have the right to flexible schedules subject to agreement with the employer and proof of the health condition.

Additional special obligations of the employer

The law introduces new provisions that employers must follow, including hiring employees with disabilities.

Companies with up to 500 employees must hire at least two employees with disabilities for every 100 permanent employees. Companies with more than 501 employees must hire one additional person with disabilities for every 100 employees.

Additional leave

Additional leave from work is available in the following circumstances:

• Attending urgent or scheduled medical appointments with a specialist, provided the employee informs the employer in advance and provides certification.
• Attending school-related obligations as guardian.
• One day off for every six months of using a bicycle as a means of transport, which is optional for the parties.

Annual severance payment

The law allows the employer to pay annual severance directly to the employee. Direct payment to the employee will release the employer from the obligation to deposit the funds in the severance fund except in exceptional circumstances such as evidence of lack of freedom or misuse of the severance funds.

Apprenticeship employment contract

The apprenticeship contract will be a special employment contract governed by the provisions of the Colombian Labor Code and for a fixed term of up to three years.

The amount of the allowance depends on the stage of the contract.  In addition, special rules apply regarding social security contributions.

Companies that are obligated to hire apprentices but choose not to may opt to monetize their apprentice quota. In such cases, they must pay SENA (the national training service) an amount equivalent to 1.5 times the monthly legal minimum wage for each apprentice not hired.

Digital delivery platforms

Under the 2025 labor reform, relationships between digital platform companies and delivery service workers may take one of two forms: (1) dependent and subordinate, or (2) independent and autonomous.

In the case of independent relationships, exclusivity clauses are prohibited.

Obligations for digital platform companies include:

• Ensuring rest periods for workers.
• Implementing a mechanism for worker identification.
• Paying social security contributions for dependent and subordinate workers.
• For independent and autonomous workers:

• Health and pension contributions must be covered 60% by the company and 40% by the worker.
• Occupational risk contributions must be fully (100%) covered by the company.
• The contribution base is set at 40% of the worker’s income.

• Create reports of effective service hours worked by digital employees.
• Register with the Ministry of Labor in order to report quarterly the number of active employees on the digital platform.
• Inform employees about the automated systems used to supervise evaluate or monitor their work and the systems that make or support decisions affecting their working conditions.
• Supervise automated systems (through human review).

These provisions will come into force in 12 months (June 25, 2026).

Formalization of paid domestic work

Paid domestic work must be governed by a written employment contract. The employee may keep their affiliation to the subsidized health regime as a social protection mechanism.

Benefit for the creation of new jobs

This applies to employers who create new positions and will be granted for a maximum of six months for each new job for women, young people, and persons over 50 years of age with monthly payment while unemployment exceeds the OECD average.

Migrant employees

The migration status of a migrant will not limit their labor or social security rights. Migrants will have the same guarantees as nationals. The Ministry of Foreign Affairs will regulate the procedure so that once an employment contract is signed, the employee’s migration status can be more easily regularized.

First employment and last employment program

The Ministry of Labor must regulate the incentive for this program by December 25, 2025.

Contractors and subcontractors

Contractors or subcontractors are natural or legal persons who undertake to perform works or services for a price for the benefit of third parties with autonomy and assuming the risks using their own means.

The contracting parties will be jointly and severally liable with the contractor for salaries benefits and compensations to which employees are entitled except for tasks unrelated to their main activity.

Temporary Services Companies

They may not enter into contracts for situations other than those allowed by law.

The contract must specify the reason for hiring and the purpose of supplying labor. If the purpose of the supply continues beyond the legal limits, the user company cannot contract with any Temporary Services Agencies for the same purpose.

If the user company violates this provision, it will be considered the true employer following a judicial declaration.

Telework

Transnational telework is an employment relationship entered into in Colombia in which the employee works from another country. The contract is governed by Colombian law. The Occupational Risks Administrator must cover accidents and occupational diseases of transnational teleworkers in the country where they work. For this purpose, the Occupational Risks Administrators may acquire insurance abroad at the employer’s expense.

Temporary or emergency telework applies during health emergencies or natural disasters.

Connectivity allowance replaces the transport allowance for teleworkers earning less than two times the monthly minimum legal wage.

Flexible work environments

Allows the entry of companion animals with a certificate of need issued by a professional.

Union freedom and international standards

Promotes the participation and inclusion of women to achieve equal or proportional representation.

It also establishes obligations for unions to complement their bylaws regarding their internal functioning.

Effective dates

The Labour Reform came into effect on June 25, 2025.

The effective date for (1) the new regulation on daytime and nighttime work hours, (2) regulation by the Ministry of Labor on digital platforms, and (3) regulation by the Ministry of Labor on incentives for companies hiring new employees is December 25, 2025.

From June 25, 2026 the following will come into effect: (1) date for updating Internal Work Rules, (2) regulation of digital delivery platforms, and (3) hiring of employees with disabilities.