Colombia: Reforms to the ‘Substantive Labor Code’

Employer action code: Act

The initial reforms to the Substantive Labor Code (Código Sustantivo del Trabajo – CST) proposed in 2023 (see our May 2023 Global News Brief: Colombia: Substantial labor reform on the horizon) were hugely ambitious in scope, resulting in much debate and repeated delays. The final version of the reforms recently approved by the Colombian Congress excludes some of the most controversial and costly proposals, such as substantial increases in paternity leave and severance. Law 2466 was signed by President Gustavo Petro on June 25, 2025, and most key provisions took effect the following day (unless otherwise noted below).

Key details

• New employment contracts are now of indefinite duration by default. Fixed-term and fixed-task contracts are possible only for temporary business needs. Employment under one or more fixed-term contracts is limited to four years in total
• The use of contractors, outsourcing arrangements and temporary service companies is restricted. Pay and benefits of contractors and subcontractors must equal those of comparable ordinary employees of the enterprise contracting for services
• Employees with family responsibilities (i.e., caring for dependent family members such as minor children and elderly, disabled or seriously ill relatives) are now entitled to request flexible work arrangements to meet those responsibilities. Employees are also now entitled to paid leave for medical or children’s school appointments; for family emergencies; or to comply with a judicial, administrative or legal summons
• Constitutional protections against various forms of discrimination have been added to the CST, as well as provisions to eliminate violence and harassment in the workplace
• Overtime work is now limited to two hours per day and 12 hours per week. Government authorization for overtime is no longer required, but the government may suspend overtime for six months if employers fail to comply with rules on overtime hours or pay
• Compensation for work on Sundays and public holidays will increase from 175% to 180% of normal pay on July 1, 2025; to 190% on July 1, 2026; and to 200% on July 1, 2027
• Effective January 1, 2026, night work time will start at 7:00 p.m. (rather than at 9:00 p.m.)
• Effective June 26, 2026, a new minimum employment quota for persons with disabilities will apply. Companies with up to 500 workers will have to employ at least two people with disabilities for every 100 employees, increasing to three people per 100 employees for companies with more than 500 employees

Employer implications

The changes noted above are only a partial list of reforms introduced under the amended CST.  Employers should review and update their work rules, employment contracts and policies to ensure compliance by the various effective dates.