Labor regulation reform in Colombia in 2023: Discount of the workweek

Beginning the on the fifteenth of July in 2023, a significant change is being applied for working Colombians and companies all through the nation. The process of reducing hours in the standard workweek without a pay decrease is being enacted on this day. As of now, the brand new labor regulation reform in Colombia will minimize down hours labored, weekly, by one hour. A discount of the workweek in Colombia would be the first step in acquiring a 42-hour workweek by 2026, in line with the brand new labor regulation reform in Colombia. The present expectation of hours labored per week in Colombia is 48.

The change is anticipated to affect companies in a number of methods, together with authorized and sensible reforms. The Law 2101 of 2021, which altered Article 161 of the Work Employment Code, is likely one of the most notable legal guidelines that asks for a discount within the most variety of hours that Colombian workers are anticipated to work every week. The distribution of labor hours over 5 to six days can nonetheless be negotiated by employers and workers so long as not less than sooner or later off per week is maintained. However, it will likely be necessary for firms within the area to remain up-to-date with adjustments in legal guidelines and rules relating to the labor regulation reform in Colombia. Companies could should adapt considerably as a way to guarantee compliance with the brand new labor reform.

An Employer of Document, often known as a EOR, may also help your organization stay compliant and up-to-date with the labor regulation reform in Colombia. Learn our article under, for an instance of the way it could also be helpful in your firm in Colombia throughout vital adjustments to labor legal guidelines.

SEE ALSO: The Execs and Cons of Hiring by an Employer of Document in Costa Rica

What does a labor regulation reform in Colombia seem like?

As what was talked about above, there might be vital adjustments due to the labor regulation reform I n Colombia. Working Colombians and corporations all through the nation ought to concentrate on the next changes:

• The 48-hour work week might be step by step decreased, efficient in mid-2023.
• The period of time Colombians spend working will lower by one hour yearly, with no hostile results on pay, advantages, or the value of the day by day working hour.
• The preliminary aim of the initiative is to chop the workweek’s whole hours labored to 42 by 2026.
• The primary two years (2023 and 2024) will see a discount of 1 hour, adopted by a discount of two hours in 2025 and 2026.

These adjustments will have an effect on each workers and employers. In case you function a enterprise in Colombia, you might be obligated to adjust to necessities akin to renegotiating situations together with your present workers, updating and/or revising your employment contracts to replicate these new calls for, and modernizing your payroll procedures. For workers, employers will not be required to supply the “Día de Familia” and Leisure Days Off advantages if the utmost variety of work hours reaches 42. However, new reflections within the labor regulation for this discount of the workweek in Colombia, will forestall employers from slicing pay and extra advantages for workers throughout trip and holidays.

What are the potential implications on the financial system?

Provided that the financial system is experiencing a disaster, many members of Congress think it is not possible to shorten the working day in Colombia. What unfavourable results this labor regulation reform in Colombia might need on the nation’s enterprise group is likewise unknown, as of now. Moreover, they contend that it accomplishes little to cease casual employment within the nation and may probably make it worse. 

It’s cheap to imagine that shortening the workday may end in lowered manufacturing as a result of fewer individuals can be working. Moreover, if a enterprise wanted a employee for extra hours, it could imply having to pay for extra hours that will already be deemed extra time. This might have an hostile monetary affect on the agency.

Many analysts word that this shift just isn’t really helpful for the productive sector and that it’s an unfavorable time as a result of we’re conscious of the challenges that companies are going through. The bulk try to activate and restore manufacturing at its pre-pandemic charge. They contend that this motion could have an effect on the probability of restoration by implementing the labor regulation reform in Colombia, which may result in much less productive working time, or by forcing the hiring of extra staff, which might elevate manufacturing prices.

Then again, Colombia had didn’t abide by the ILO’s suggestions since 1962 and the world group’s name for a discount within the most working day as a way of relieving the employee of their labor-related obligations. Nevertheless, even if Legislation 2101 of 2021 lowers the utmost working day from 48 to 42 hours per week, Colombia’s employment regulation will stay increased than the common working day of OECD members, which is 37 hours per week, and it gained’t get to the ILO’s really helpful commonplace of 40 hours per week, which is the work week discovered in additional productive nations.

What sectors and/or industries are to be affected essentially the most by the labor regulation reform in Colombia?

The economic sector has expressed essentially the most unfavorable views of the brand new regulation. In line with the Nationwide Affiliation of Entrepreneurs (ANDI), slicing again on working hours doesn’t essentially point out that an organization may have extra time for its productive actions, necessitating the hiring of further workers. The industries most impacted by needing to recruit extra individuals or pay extra extra time are those who depend on manufacturing by slicing again on working hours.

What’s the authorities’s reasoning for the Labor Legislation Reform in Colombia?

The federal government intends to enhance staff’ means to merge their job and private lives. To improve the mental health and productivity of the workforce, a reduction of the workweek in Colombia has been supported and applied by the federal government. The aim is for extra time to be spent with household and mates, amongst different issues. The regulation can be designed to provide staff extra free time to allow them to pursue additional schooling and ability growth. It’s anticipated that it will reduce worker absenteeism, assist with job reactivation, and lift consciousness of the connection between employers. Extra companies are steadily adopting versatile practices, such engaged on Fridays till midday and creating extra versatile work schedules, as properly.

Will the Labor Legislation Reform in Colombia have an hostile response the financial system and industrial manufacturing employers?

There was restricted evaluation of the potential advantages and downsides of this new regulation as a result of it has only recently been implement. Nevertheless, ANDI’s judgment, which means that companies should spend far more to cowl a rise in workers or to make up for extra extra time hours, may change into a actuality. The economic sector can be significantly affected by the shorter workday as a result of there can be much less product manufacturing, which might drive up the value of these merchandise. To keep up manufacturing ranges, it could be essential to rent further staff. The price of paying extra time to workers will enhance if the enterprise is unwilling or unable to rent additional workers.

Biz Latin Hub may also help you with employment

At Biz Latin Hub, we offer built-in market entry and back-office providers all through Latin America and the Caribbean, with workplaces in Bogota and Cartagena, in addition to over a dozen different main cities within the area. We even have trusted companions in lots of different markets.

Our unrivalled attain means we’re ideally positioned to help multi-jurisdiction market entries and cross-border operations.

In addition to information about hiring in Colombia, our portfolio of providers consists of hiring & PEO accounting & taxation, firm formation, checking account opening, and company authorized providers.

Contact us at this time to study extra about how we are able to help you to find high expertise or doing enterprise in Latin America and the Caribbean.

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