Colombian President Gustavo Petro has secured a landmark legislative win with the passage of a sweeping labor reform law on June 25, 2025, following two failed attempts in Congress and a shelved plan for a national referendum.
At a Glance
- Petro canceled a planned labor referendum after Congress approved a revised reform bill
- The law expands worker rights, including overtime pay and restrictions on temporary contracts
- It guarantees social protections for gig workers and formal contracts for student interns
- Business leaders warn the reforms may increase informal employment and burden small firms
- The law reinforces Petro’s agenda and fuels speculation about future constitutional initiatives
From Legislative Gridlock to Reform Breakthrough
After facing legislative defeats, President Petro proposed a 12-question referendum in May to bypass Congress, asking Colombians to vote on labor protections including an eight-hour workday, union rights, and holiday pay. Labor unions backed the initiative with a 48-hour strike.
However, after weeks of political pressure, the Colombian Senate narrowly approved a revised labor bill on June 20, leading Petro to formally withdraw the referendum effort. The reform includes mandates to increase Sunday and holiday pay to 100%, limit short-term employment contracts, and provide benefits to gig-economy workers.
Key Provisions of the Labor Reform Law
Signed at the symbolic Casa de Nariño on June 25, the law guarantees enhanced protections for Colombia’s salaried workforce. Workers will now receive formal contracts, paid overtime, and expanded access to social security and health benefits—provisions that had been eroded by decades of labor deregulation.
Notably, the legislation extends mandatory protections to delivery app couriers, freelance platform workers, and student interns, addressing a rapidly growing gig economy. Petro hailed the reform as “historic,” urging voters to elect leaders who will preserve and enforce it. “The government that comes next must protect this law,” he said during the signing ceremony.
Economic Warnings and Political Implications
Despite support from labor unions and progressives, business groups and opposition economists have cautioned that the reforms could backfire. Critics argue the increased costs may prompt employers to avoid formal contracts, thereby driving more workers into Colombia’s already large informal sector, which currently encompasses over half the labor force.
The Colombian Council of Business Leaders warned the law could “cripple job creation” if not paired with broader economic incentives. Some sectors, especially small enterprises, fear compliance costs may become unsustainable.
Petro’s success in passing the labor reform—after months of political confrontation—also revived speculation about his long-term goals. Analysts point to his recent public comments supporting a constituent assembly as a possible next step, though the president has not formally announced such plans.
In conclusion, Colombia’s labor reform marks a defining moment for Petro’s presidency, delivering key policy victories to workers while testing the boundaries of economic resilience and institutional reform. Whether it becomes a lasting legacy or a political flashpoint may depend on how it’s implemented—and who governs next.
