Colombia’s President Signs Major New Labor Law in Front of Thousands

Colombian President Gustavo Petro signed a new labor law on June 25, 2025, in front of a large crowd in Bogotá. This law brings the biggest changes to Colombia’s work rules in many years.

The government says it will give more rights and better protection to workers across the country. The new law changes how companies must pay workers. From now on, anyone working after 7 p.m. will earn extra pay.

People who work on Sundays or holidays will also get higher wages, with double pay coming into effect by 2027. The law makes it harder for companies to use short-term contracts. Most workers must now get permanent contracts.

For the first time, the law covers gig workers, such as delivery drivers who use apps. Companies must now give them contracts, health insurance, and social security. Student interns will also get formal contracts and benefits, including paid vacation and severance pay.

President Petro and his supporters say these changes will help millions of Colombians who have not had stable jobs or proper contracts. Labor unions supported the law, saying it was needed to fix unfair working conditions.

The law also includes new protections for women, young people, and people who have had trouble finding jobs in the past. Business groups, however, worry about the costs.

New Labor Law in Colombia Sparks Concerns Over Rising Costs

The National Businessmen’s Association of Colombia says the new rules could increase labor costs by up to 34%. Many small and medium-sized businesses fear they will struggle to pay these higher costs and may have to cut jobs.

There are also concerns that more people might end up working in the informal economy, where there are no contracts or protections. Official data shows that about 56% of Colombian workers are already in informal jobs.

The law passed after months of debate in Congress. Some proposals, like longer parental leave and more union rights, were removed to get enough votes. The final version still brings big changes for both workers and employers.

Now, companies must quickly update their contracts and policies to follow the new rules. Workers hope the law will truly improve their pay and job security. The government must make sure the law is enforced so that its promises become reality.

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