File photo. People fill out job applications as they search for job opportunities in Bogota, Colombia May 31, 2019. REUTERS/Luisa Gonzalez

During the turbulent first week of March that the government of Gustavo Petroin which a fragmentation of the government parliamentary bloc was highlighted when several parties announced that they would present their respective health reforms, the government disclosed what the labor reform bill would be, one of the big bets of the Petro government.

Although the Minister of Labour, Gloria Ramirez, He has already indicated that he will take the March 16 In this reform at the Congress of the Republic, there are already clear issues which will be integrated and which undoubtedly foresee the evolution of the cost of labor for companies, the outsourcing of services, the types of hiring, the stability of strengthened employment and collective labor rights.

“Thanks to a document recently made public, the articles of labor reform that the national government intends to present to Congress, with the aim of advancing structural reforms in labor law, have been known. It is important to analyze the impact of these proposals for companies, micro-entrepreneurs, informal workers and the unemployed,” he said in an analysis published Thursday, March 9. Carlos Mario Sandoval, Lead Partner People Advisory Services, EY Colombia and Mexico.

That said, what are the key points of what we already know about this reform? According to Sandoval, there are five key aspects, starting with days, surcharges and licenses.

Labor reform (Screenshot from EY document)
Labor reform (Screenshot from EY document)

With regard to the outsourcing of services, for independent contractors This reform aims to limit the provision of services to specialized services only, ie services which are not linked to the main activity of the contractor.

“This implies the elimination of opportunities for SMEs and individuals who currently provide services in various sectors of the economy”, explains the analysis of EY.

In addition, the specialized contractor, who is authorized to provide services, must pay the same salaries and benefits that the service user has established for its own employees, which would imply an increase in the cost of services such as cleaning, security, technology, maintenance, among others.

And regarding the contracting through Temporary Service Companies, The reform maintains this figure, but obliges temporary work companies to have the same extra-legal cost regime for users of temporary services, “structurally affecting the temporary work companies which today offer formal jobs”. to over 400,000 people,” concludes EY’s analysis in this regard.

In relation to the types of contracts, in relation to the fixed-term contract or for work or labour, With the reform presented by the government, employers will have to stipulate not only the duration or work of the contract, but also the specific activity that the employee will carry out. At the end of the fixed-term or work or work contract, the employer must demonstrate that the need for employment has disappeared.

When companies are faced with a decline in sales, the market, their operations or their technicization, They will not be able to terminate employment contracts by paying compensation.

Pregnant women, people with any type of disability, fathers or mothers who are heads of families, or people less than 3 years from retirement, They can only be revoked with the authorization of a judge. which proves a valid reason for termination.

And when companies technicize the processesthey will not be able to dismiss the workers who executed them, they will have the obligation to convert them and assign them to a new position, even if they don’t require it.

Faced with this challenge, unions will be able to file petitions with unions seeking framework agreements that benefit all workers in the sector.

He also considers the striking ability or strike in the workplace in the face of any union disagreement, the abolition of collective agreements when they constitute a legitimate form of association and bargaining for those who do not wish to join a union, and outright competition for THE Arbitration courts in social matters and modification of the configuration of the lists of arbitrators.

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