Colombian labor reform: what companies need to know

The approval of Law 2466 of 2025 marked a turning point in the Colombian labor market. For organizations, the new challenges are especially impactful on small and medium-sized enterprises, which represent more than 90% of the country's business fabric.

Hiring specialized personnel is emerging as a strategic solution for complying with regulations, reducing legal risks, and accessing qualified talent quickly and efficiently. In this article, we explore the main changes brought about by the reform, the current challenges of hiring in Colombia, and how H&CO's staffing service can help your company adapt to this new landscape.

What does Law 2466 regulate? Key changes in labor reform

Law 2466 aims to guarantee decent, dignified and formal work by modifying the Substantive Labor Code and other labor regulations. It focuses on:

• Promote job stability.

• Improve workers' income.

• Eradicate discrimination and harassment.

• Regulate outsourcing and teleworking.

• Strengthen freedom of association.

• Promote the transition to sustainable economies.

Impact of labor reform on hiring

The law introduces a series of measures that directly impact the recruitment and management of human talent:

• Indefinite contracts, as a general rule, fixed-term contracts can only be used with clear justification and have a maximum duration of four years. Otherwise, they automatically become permanent.
• Progressive reduction of working hours: from 48 to 42 hours per week, with no reduction in pay. This requires reorganizing shifts and adjusting budgets.
• Increase in night and Sunday surcharges: the surcharge for working Sundays and holidays will rise to 80% in 2025, to 90% in 2026, and to 100% in 2027. The night surcharge applies from 7:00 p.m.
• New paid leave: for medical appointments, children's school commitments, and other justified situations.
• Mandatory overtime recording: Companies must document and provide employees with a detailed report of overtime hours.
• Regulation of teleworking and digital platforms: equal rights are guaranteed for workers in hybrid, remote, or platform-based modalities.

In addition, new labor costs arise from surcharges and licenses, which especially impact sectors such as security, surveillance, health, and 24/7 services. Requirements for new hires are also tightened, the SENA apprenticeship model is formalized (with a greater economic burden for companies), and the administrative workload increases.

Main hiring challenges in Colombia after the labor reform

Beyond regulatory changes, companies face structural and market obstacles:

1. Shortage of qualified talent

Sectors such as technology, finance, sales, and logistics have a high demand for specialized profiles that the local market cannot always fill.

2. High turnover and incompatible expectations

Employee turnover in Colombia exceeds the global average. Emotional salary, flexibility, and well-being are now decisive factors for candidates.

3. Digitization and automation

Digital transformation demands new skills and more agile processes, but many organizations still lack technological tools to optimize talent management.

4. Complex regulatory compliance

The reform requires reviewing contracts, internal policies, shifts, and payroll processes. Failure to comply may result in legal penalties and loss of reputation.

Labor trends in Colombia: what comes after this law?

Reform is not the only factor transforming the world of work. Companies must anticipate:

• Increased demand for digital skills: data analysis, cybersecurity, software development, and digital marketing.

• More inclusive practices: hiring people with disabilities, women in leadership positions, and young talent.

• Hybrid and flexible models: remote work is here to stay and requires new forms of management and compliance.

A strategic solution to comply with labor reform

H&CO's staffing service is designed to help companies meet these challenges with flexible, legal, and efficient solutions:

• Guaranteed regulatory compliance: we ensure that every hiring complies with Law 2466 and other labor regulations.
• Access to specialized talent: We have a network of professionals in accounting, finance, technology, and sales.
• Operational flexibility: We adapt our services to your needs: temporary, project-based, or long-term hiring.
• Strategic consulting: We help define profiles, project labor costs, and design team structures.

How to adapt to labor reform with expert support

The implementation of Law 2466 of 2025 requires Colombian companies to thoroughly review their internal hiring and firing practices. Beyond regulatory compliance, it is about avoiding errors that could lead to penalties or unnecessary costs. For example, practices such as verbally dismissing an employee, still common in some organizations, can generate legal conflicts if not properly documented. It is also essential to verify that the type of contract used corresponds to the actual duties of the position and that the hiring and termination processes are properly organized and documented.

Many companies are choosing to conduct internal audits of their current employment contracts, with the aim of adjusting them to the new reform guidelines. It is also crucial to train Human Resources departments and all teams involved in personnel management to ensure the correct interpretation and application of the regulations.

In this new landscape, formality, traceability, and clarity in labor processes are not only a legal requirement but also a competitive advantage. If you need guidance to navigate the new measures for your company, our experts can assist you.