In the Headlines
June 20, 2025
Labor Reform: Will Informality Increase? Digital Platforms, Surcharges and More, Expert Explains
Caracol Radio
Labor and employment attorney Camilo Cuervo was interviewed by Caracol Radio about the recent reconciliation of the labor reform by the Congress of the Republic and its effect on labor informality in Colombia. Mr. Cuervo noted that, although the reform aims to formalize workers on digital platforms by requiring companies to contribute to social security, it could generally encourage informality because of higher labor costs, such as the extension of night shift surcharges. Regarding the apprenticeship contracts of the National Training Service (SENA), he warned that their formalization could reduce the hiring of apprentices because it becomes costly for companies.
"The only formalization element it has was basically made for workers on digital platforms. The reform requires platforms to pay social security and make certain types of savings to guarantee security and minimum income related to the services provided. That would be the only formalization measure the reform has, but in other areas, we fall short in many things," he said.
READ: Labor Reform: Will Informality Increase? Digital Platforms, Surcharges and More, Expert Explains
"The only formalization element it has was basically made for workers on digital platforms. The reform requires platforms to pay social security and make certain types of savings to guarantee security and minimum income related to the services provided. That would be the only formalization measure the reform has, but in other areas, we fall short in many things," he said.
READ: Labor Reform: Will Informality Increase? Digital Platforms, Surcharges and More, Expert Explains