Labor Reform, One Year Later: More Costs, More Processes and Incomplete Rules

Labor and Employment attorney Camilo Cuervo was cited in an article published by Revista Dinero as part of its special lawyers edition sharing his perspective about Colombia's labor reform a year after it took effect. The reform, which coincided with the final workweek reduction to 42 hours, has been implemented gradually, forcing companies to review their contracts and contracting structures, internal policies and disciplinary procedures. Camilo told Revista Dinero that one of the challenges facing businesses has been establishing formal compliance processes, now that some measures already in place have been elevated to the level of regulatory requirement. He also described the effects of increased labor costs caused by changes to overtime hours and the increase in compensation for working Sundays and holidays, both of which were accompanied by the minimum wage increase for 2026.

"It's estimated that for every hour reduced by the new workweek, the value of the hour increased by 3 percent," he commented. "Adjusting schedules at companies where employees work five days a week, eight hours a day, implies the loss of two operative hours. To this you add the eventual surcharges, and it's more costly."

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