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LATIN AMERICA ADVISOR

LATIN AMERICA ADVISOR

A daily publication Of the dialogue

July 2, 2025

Will Labor Reform Transform Colombia For Better or Worse?

Colombia’s government last month enacted a major reform to labor regulations, a key objective of President Gustavo Petro. // Photo: Presidency of the Republic of Colombia.

Q

A

Sergio Guzmán, political risk analyst at Colombia Risk Analysis: “On June 25, President Petro signed into law a landmark labor reform that redefined key aspects of the country’s labor landscape. While the measures are expected to improve existing workers’ well-being by enhancing job stability, increasing compensation, and extending protections to previously excluded sectors such as informal and platform workers, the reform does little to promote labor formalization or expand employment. It presents considerable risks for employers, especially small and medium-sized businesses, due to higher labor costs and compliance obligations. This will have an outsized impact on sectors that rely on late-hour or continuous operations, such as hospitality, healthcare, security, and retail. Business groups warn that the new rules could discourage formal hiring and fuel labor informality, while financial markets have reacted cautiously to the fiscal…”

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The Inter-American Dialogue publishes the Latin America Advisor every business day for a distinguished membership of informed corporate leaders, scholars, and government officials invested in Latin America’s development and future. The Advisor‘s highly regarded Q&A section covers questions submitted by subscribers themselves. Commentators regularly include heads of state, business leaders, diplomats, economists, analysts, and thought leaders from around the world. Many of the world’s largest and fastest-growing companies subscribe to the Advisor. To subscribe, click here. For terms and conditions, click here. For more information, contact Gene Kuleta, editor of the Advisor, at gkuleta@thedialogue.org.

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Diego Arria
Director,
Columbus Group

Merike Blofield
Professor of Political Science,
University of Hamburg

Devry Boughner Vorwerk
CEO,
DevryBV Sustainable Strategies

Joyce Chang
Global Head of Research,
J.P. Morgan

Marlene Fernández
Corporate Vice President for Gov’t Relations,
Arcos Dorados (McDonald’s)

Peter Hakim
President Emeritus,
Inter-American Dialogue

Donna Hrinak
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Jon E. Huenemann
Council Member,
GLG Inc.

James R. Jones
Chairman,
Monarch Global Strategies

Craig Kelly
Senior Director,
Int’l Gov’t Relations,
Exxon Mobil

Barbara Kotschwar
Professor of Political Economy,
Georgetown University

John Maisto
Director,
US Education Finance Group

Nicolas Mariscal
Chairman,
Grupo Marhnos

Thomas F. McLarty III
Chairman,
McLarty Associates

Beatrice Rangel
Director,
AMLA Consulting

Ernesto Revilla
Head of Latin American Economics, Citi

Gustavo Roosen
President,
IESA

Andrés Rozental
President, Rozental &
Asociados

Shelly Shetty
Managing Director,
Sovereigns, Fitch

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