Biggest Changes to Local Employment Laws Are Here!

The Colombian government has recently approved a comprehensive labor reform, introducing significant changes to the country’s employment landscape. This reform will have far-reaching implications for both employers and employees, with several key modifications taking immediate effect. Below, we outline the most critical updates under the new legislation. A more detailed analysis of each change will follow in subsequent articles.

I. IMPORTANT CHANGES THAT TAKE EFFECT IMMEDIATELY

1. Surcharge for Sundays and Public Holidays: The surcharge for working on rest days will increase from 75% to 100% as a percentage of the cost of a day’s work by 2027 as outlined below:

2. SENA Apprenticeship Contract: The Apprenticeship Contract becomes a fixed-term employment contract with a maximum duration of three years. The “apprentice” will now be considered a full employee with all the rights, guarantees, and protections (including labor privileges) of an employee.

During the practical phase or throughout the dual training, the apprentice will be covered by occupational risk, health, and pension insurance and will be entitled to all the social benefits, assistance, and other rights guaranteed pursuant to a standard employment contract. The practical training period must be certified and recognized as work experience.

The amount of compensation for the apprenticeship fee will now increase to 1.5 SMLMV per non-hired apprentice. This amounts to COP$ 2,135,250 for 2025.

Still unclear whether these changes apply to existing contracts or only to future contracts as regulatory action by SENA is still pending. Our Firm currently recommends that local businesses apply these changes immediately to all types of contracts in order to minimize risks.

3. Connectivity Assistance: For teleworkers earning up to two (2) SMLMV (COP$ 2,847,000), the employer must now provide a subsidy equivalent to the current transportation allowance. This means local companies will now be required to pay the equivalent of COP$ 200,000 monthly for 2025.

4. “Crea Empleo” Subsidy: The Colombian government will provide a subsidy to local businesses that hire young people, women and employees over 50 years of age up to 25% of the minimum monthly wage for each additional worker. The benefit cannot be combined with other national subsidies to encourage formal hiring. While this subsidy applies starting this month, regulatory rule-making has yet to catch up with the legislative process so no clear rules have been issued to date.

5. Overtime: Prior authorization for overtime work has now been eliminated, though the limit of 2 hours per day and 12 hours per week remains in place (except for the health and security sectors). Employers must keep a record of the overtime worked by each employee, specifying the name of each employee, activity performed, and number of hours worked. Employers are also required to keep records as to whether local employees are working during the daytime or nighttime hours.

Separately, a new regulatory penalty is approved for businesses that do not pay overtime which could include the suspension of overtime hours for 6 months. This would apply beyond any other penalties that the government may assess.

6. Mandatory Paid Leave: Employees are now entitled to paid leave under the following circumstances:

  • Serious domestic emergencies;
  • Medical appointments with specialists;
  • Attendance at mandatory school events (as requested by educational institutions for parents or guardians); and
  • Compliance with court, administrative, or legal summons.

7. Flexible Working Hours: A new flexible working hours system has been established for employees with caregiving responsibilities. This applies to those caring for:

  • Elderly individuals
  • Minor children
  • Persons with disabilities
  • Individuals suffering from catastrophic, chronic, or terminal illnesses

8. Fixed-Term Contract: Fixed-term employment contracts may now extend for a maximum of four years. Any renewal beyond this period will automatically convert the contract into an indefinite-term agreement. For existing fixed-term contracts, the four-year limit will be calculated from the date the reform takes effect.

9. Bicycle Incentive: Employees who use a bicycle to get to and from work can receive one (1) paid day off for every six (6) months of work.

II. RELEVANT CHANGES THAT HAVE NOT YET TAKEN EFFECT

1. Nighttime Surcharge: The workday changes as follows as of January 1, 2026:

  • · Day Shift: 6 A.M. to 7 P.M.
  • · Night Shift: 7 P.M. to 6 A.M.

2. Percentage of Workers with Disabilities: New obligations apply here:

  • Businesses With 100-500 Employees: At least 2 employees with disabilities must be hired for each 100 employees.
  • Businesses With over 501 Employees: 1 additional employee with disabilities for each 100 employees.

A report is required to be submitted to the Ministry of Labor within 15 days of signing any new employment agreement with a disabled employee. During the first year of the labor reform, the quota is voluntary; as of July 1, 2026, it will be mandatory.

3. Disciplinary Process Regulations: Five mandatory stages of the disciplinary process are now required. This change must be incorporated into the Internal Work Regulations (Employee’s Handbook) by July 1, 2026.

4. Pets: Welfare policies involving animals have also been adopted. This would allow emotional support animals, assistance animals, or animals used for therapeutic purposes in the workplace. Effective as of July 1, 2026.