Five proposals to transform labor formalization and pensions in Colombia

The researchers and analysts of the fiscal and labor observatories of the Javeriana University published a document in which they collect the proposals to transform the labor contracting system in Colombia, “In order to promote employment formalization and simplify administrative processes for both employers and workers”.

(Read: The ABC of the project that proposes changes to retention and self -retention at the source).

With this document, Academics seek to provide supplies for simple legislative proposals, with high direct impact on employment.

According to the initiative, through these ideas it is intended to reach an approach that simplifies the hiring and payment of benefits, in addition to creating incentives for formalization.

(Here: Colombia is among countries where women undertake more than men).

For researchers, the measures raised in this proposal would especially benefit small and medium enterprises.

Simple regime, the key

According to experts, the key to the initiative is to develop a simple labor contracting regime, an optional scheme that can offer a more agile and efficient approach, “Allowing employers to fulfill their labor and social security obligations simplified, while workers benefit from more direct and safe access to their rights”.

(Here: Credit inclusion went from 35% to 51% when changing measurement).

The supplies for this proposal left version 2.0 of the labor reform prepared by the Labor Observatory and the Fiscal Observatory of the Javeriana University, and expands its propositions in the hiring.

Hiring

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Five proposals

The initiative proposed by the Javeriana University revolves in five axis:

Simple regime may settle and paymonthly, not only social security contributions and parafiscal contributions, but also the proportion of worker’s cessations. These values will be liquidated and consigned monthly to the Fund of Tesantness through the battery, thus generating permanent yields in favor of the worker from the moment of the payment and facilitating the procedures for liquidation and withdrawal of partial severance, when applying.

Monthly settlement and consignment of the service premium at the ceasefire fund through the pile: In order to optimize the performance of labor savings, the legal cousin of services will be allowed to be liquidated and consigned monthly to the ceasefire in which the worker is affiliated through the battery, together with the other contributions and the mesUalized settlement of cessation. The Fund will manage these resources and capitalize them in favor of the worker, allowing the premium to generate yields from the time of periodic payment. This measure transforms the premium into an instrument of savings with profitability, without implying losing its salary or legal destination. The worker may withdraw the accumulated value of the service premiums only as of June 30 and December 20 of each year, according to the semester of causation.

Substitution of interest payment to unemployment for generated yields: Since both the unemployment and the service premiums will be settled and consigned monthly in the fund chosen by the worker through the battery, the employer will not be obliged to pay the interest to the traditionally liquidated unemployment at the end of the year. It is understood that the yields generated by the Tesantia Fund constitute continuous and more favorable compensation for the worker, both for severance and premium.

Tax incentive for compliant employers: As an incentive to the formalization and rigorous compliance with the new regime, employers will be allowed to voluntarily amounted to the simple labor contracting regime and timely comply with all their obligations, deduct from income tax the labor costs assumed in a proportion equivalent to 130% of the effectively paid. This possibility will govern for three years from the entry into force of this law.

Payment agreements for surcharges for supplementary, nocturnal, Sunday and/or festive work: When the work implies the successive rotation of day or night shifts or by the nature of the service, it is difficult to control or supervision, or when it can be provided monthly that it will work at night, Sunday or supplementary day, the parties can stipulate in writing uniform salaries, additional to the basic salary, which remunerate the night work, Sunday and supplementary, provided that these salary effectively compensate. corresponding legal surcharges. In the event in which, during a given period, the supplementary, nocturnal or Sunday work exceeds the value agreed in advance by the parties, the surplus must be paid in accordance with the rates and forms of liquidation provided for in article 168 of the Substantive Labor Code and other concordant regulations at the latest one month following the month in which the overcoming of the agreed value has been registered, without the time of the value. or sanctions to the employer.

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