Goodbye to contracts for the provision of services: the proposal of the government of Gustavo Petro

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The national government is already preparing the bill to be presented in the Congress of the Republic in 2023

Goodbye to contracts for the provision of services: the proposal of the government of Gustavo Petro

File photo. A worker cycles through the Cartagena Refinery in the city of Cartagena, Colombia, August 24, 2006. REUTERS/Fredy Builes

The government of Gustavo PetroHe would already be preparing how to materialize one of his great campaign proposals: a labor reform that includes the elimination of contracts for the provision of services. The bill in this regard would be presented in the second legislative period of the Congress of the Republic, which begins in March 2023.

It should be remembered that in October, during his speech in the< b> 'First Ibero-American Forum: Challenges of Labor Formalization', the president had already referred to the subject. In fact, it is not the first time that the Government has proposed this initiative, since, on previous occasions, the Minister of Labor, Gloria Inés Ramírez, had already put on the table.

“In the formal world we believe that the contract for the provision of services, not labor, that conceals an employment relationship in a false way, only to overexploit to him and the worker, must go down in history and that we must return to agreed labor relations,” said President Petro.

The Colombian president also assured that ending service contracts would not imply “ending the economy” because, according to him, “the most developed economies have higher wages than us”.

“Salaries are decreasing in the world, social inequality is increasing in the world”, stressed the president of Colombia.

The Minister of Labor said that in the presentation of the labor reform bill, a form of contracting that favors the progress of the formalization of work will be proposed.

“What we are proposing through the labor reform is that we are going to structure a form of contracting that effectively removes from our scenario this process of having contracts that section the rights of workers and workers, we are going to carry out a transition process to go little by little advancing towards labor formalization,” said Ramírez.

What the National Government expects with the formalization is that workers who are currently linked through this type of contract can receive benefits those that currently do not count as premiums, layoffs, vacations, among others.

“This country has changed, we have to change the chip, Colombia cannot continue as it is. And we also have court rulings that tell us that contracts that do not even include the payment of social security to the worker are perverse”, said the head of portfolio last September.

What are service provision contracts in Colombia and what are they for

In Colombia, service provision contracts area link made between an employer and a person to fulfill a certain function or activity in an estimated period of time. It is usually seen as a form of informal contracting because it is nothing more than an agreement between two parties to carry out a task.

Being a civil and non-labor contract, the employer is not obliged to pay social benefits to the hired worker. It does not conceive of the existence of labor relations or ties, which avoids a series of legal and labor obligations on the part of the contractor and the contracting party.

In this type of contract, the worker assumes the payment of their connection to the social security system: contribution to health, pension and ARL (Occupational Risk Administrator).

Taking into account the above, the worker under this type of contract who receive as payment a current legal minimum wage or more, you must contribute on the basis of 40% of the value of your income that is given during the month for the work. From this, 16% is deducted for pension and 12.5% ​​for health.