Colombia is introducing one of its most significant labor overhauls in decades. The reform affects work hours, contracts, gig workers, remote employees, and apprenticeships. With Senate approval complete and reconciliation underway in the House of Representatives, preparation is critical for any business operating or hiring in Colombia.
The reform aims to strengthen worker protections, improve job stability, and modernize labor laws that have lagged behind the realities of today’s workforce. For employers, this means new responsibilities, compliance requirements, and potential cost impacts — making early planning essential
Colombia’s labor market has historically struggled with temporary contracts, informal work, and gaps in worker protections. This reform seeks to correct these imbalances by introducing clearer standards for employers while expanding protections for employees.
Businesses with shift workers, gig workers, or remote Colombian staff will be most affected. Even companies hiring Colombian talent remotely from abroad need to understand the new rules to remain compliant. While the reform is not yet in effect as of June 2025, organizations that start preparing now will face fewer disruptions later
Key Changes in Colombian Labor Law
Work Hours & Pay: Night work now starts at 7 p.m. Sunday and holiday pay will increase progressively to 100% by 2027. Overtime is capped at 12 hours per week. Employers should plan for higher labor costs, particularly for shift-based roles.
Indefinite Contracts Are Now Standard: Unless the contract specifies otherwise, employees can assume their employment is ongoing with no set end date. Fixed-term contracts automatically convert to indefinite after four renewals or five years.
Gig Workers Must Be Included in Social Security: App-based and freelance workers gain access to social security benefits. Employers cannot require exclusivity, and platforms must provide human oversight of algorithms to ensure fair treatment.
Remote Work Provisions: Eligible employees are entitled to a connectivity allowance. Larger companies must consider hybrid work arrangements, formalizing remote options and associated benefits.
Vulnerable Worker Protections: Pregnant employees, individuals with disabilities, near-retirement staff, and rehabilitated workers receive stronger protections under the new law. Companies should review HR policies to ensure compliance.
SENA Apprenticeships: Apprentices participating in the National Apprenticeship Service program now require formal contracts. Pay rises from 75% of the minimum wage in year one to 100% in year two.
How Cresco Supports Businesses Through Colombia’s Labor Reform
Navigating Colombia’s labor reform requires careful planning. Cresco supports organizations with:
By working with Cresco, companies can stay compliant, reduce risk, and streamline HR operations while adapting to Colombia’s evolving labor landscape. To learn more or get started, contact us via the form below or at info@cresco-global.com
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