Key takeaways:

• Work hours & pay: Night work starts at 7 p.m.; Sunday/holiday pay increases to 100% by 2027; overtime is capped.
• Contract changes: Indefinite contracts become the norm; fixed-term contracts face stricter limits.
• Gig worker inclusion: App-based workers gain contracts, social security, and protections.
• Remote work rules: Employers must offer connectivity allowances and hybrid options.
  Broader protections: New safeguards for vulnerable groups and ex-offenders.
• Apprenticeships formalized: SENA participants now receive contracts and fairer pay.
• Higher labor costs: Costs may rise up to 35%, hitting SMEs and shift-based jobs hardest.
• Global impact: Companies hiring in Colombia must adapt contracts and ensure compliance.

Bottom line:
Colombia’s labor reform boosts worker protections but increases employer obligations and costs. Staying compliant will be key for businesses operating or hiring there.

Colombia’s Senate has approved a labor reform bill that could reshape the country’s employment landscape for years to come. With 57 votes in favor and 31 against, the legislation now heads to a reconciliation process with the House of Representatives, where final revisions will be made before heading to President Gustavo Petro’s desk.

This highly anticipated labor bill is part of President Petro’s broader push to strengthen workers’ rights, reduce informality, and reverse labor flexibilization trends dating back to the 1990s. It also marks a pivotal moment in Colombia’s ongoing debate over the balance of power between the executive and legislative branches.

Here’s a breakdown of the key changes, what they mean for Colombian workers, and what businesses, both local and international, should prepare for.

What’s Changing in Colombian Labor Law?

1. Standard Workday and Overtime Reform

The reform redefines the standard workday as 8 hours and significantly increases pay for evening, weekend, and holiday work:

• Night shifts now begin at 7 p.m. (instead of 9 p.m.), triggering premium wages earlier.
• Sunday and holiday pay will increase progressively from 75% to 100% over three years (80% in 2025, 90% in 2026, and 100% by 2027).
• Overtime is capped at 2 hours per day, or 12 hours per week.

For workers: Higher earnings for those in service sectors, retail, hospitality, and logistics.
For employers: Increased labor costs, especially for businesses relying heavily on late or weekend shifts.

2. Contract Types and Job Security

The reform limits the use of short-term and fixed-term contracts:

• Indefinite-term contracts are now the standard.
  Fixed-term contracts will automatically convert to indefinite if extended more than four times or exceed five years.

For workers: More job stability and predictability.
For employers: Less flexibility in scaling or seasonal hiring; higher long-term obligations.

3. Gig Economy Workers Now Covered

Delivery app workers must now:

• Be formally contracted as freelancers or employees.
• Be included in the social security system.
• Be protected from algorithmic bias and not forced into exclusivity.

For workers: Access to healthcare, job protections, and fairer treatment.
For gig platforms and clients: Higher costs of compliance and restructuring of business models.

4. Telework and Remote Job Provisions

The reform supports remote work:

• Connectivity allowance for remote workers earning up to twice the minimum wage.
• Companies must accommodate partial remote work, depending on their size.

For workers: Formal recognition of telework expenses.
For companies hiring remote Colombian talent: New mandatory benefits and cost considerations.

5. Stronger Worker Protections

The bill expands anti-discrimination measures and includes:

• Special protections for pregnant women, disabled workers, and those nearing retirement.
• Recognition of work experience for formerly incarcerated individuals.

For employees: Greater inclusivity and equity in the workplace.
For employers: Broader compliance requirements in hiring and HR processes.

6. SENA Apprenticeships Reformed

Apprentices in the National Apprenticeship Service (SENA) program will now:

• Shift to formal labor contracts.
• Be paid 75% of the minimum wage in year one, and 100% in year two.
  

For youth workers: A stronger path to fair compensation and formal employment.
For companies: A more regulated (and costlier) apprenticeship system.

What’s the Economic Impact?

While the reforms are seen as a win for labor rights, analysts warn they may come at a price. Labor costs are expected to rise between 6.8% and 35%, especially for small and medium-sized enterprises (SMEs) and businesses with high overtime hours.

The formalization of gig workers, increased surcharges, and restricted use of flexible contracts may drive some employers to rely more heavily on informal labor, potentially undermining the reform’s goals.

What Happens Next?

• The Senate and House must reconcile their versions of the bill by June 20.
• If the final bill meets Petro’s goals, he may withdraw the referendum push.
• If not, political uncertainty could deepen.

Although the reform has been approved by the Senate, it is not yet in effect. It still needs to go through reconciliation with the House of Representatives, and it hasn’t been signed into law by President Petro as of today (June 19, 2025).

What This Means for Companies Hiring Colombian Talent

If you’re a company outsourcing work to Colombia or hiring remote Colombian workers, be prepared to:

• Review contract structures, indefinite terms may soon be the default.
• Budget for higher labor costs, especially for remote and hourly roles.
• Ensure compliance with new protections, benefits, and allowances.
  

How Filta Can Help

Navigating labor law reforms, especially in fast-changing environments like Colombia, can be overwhelming. At Filta, we help companies hire, manage, and retain Colombian talent while ensuring full compliance with local labor laws.

Whether you’re scaling a remote team or building a local workforce, our HR and legal experts stay ahead of every regulatory change so you don’t have to. We’ll help you:

• Structure compliant employment contracts
• Manage benefits and payroll in line with new requirements
• Stay flexible while reducing legal and financial risks
  

Hiring in Colombia? Let Filta simplify the complex, so you can focus on growing your business.

Stay informed: As the reconciliation process unfolds, companies and workers alike should monitor legal updates closely to ensure compliance and adapt to the changing labor environment in Colombia.

Visit filtaglobal.com to stay updated on Colombia’s labor law changes, get expert insights, and learn how we can help you navigate compliance with confidence.