Category: News

The Constitutional Court of Colombia stated that the legal institution of “enhanced stability” is not limited to workers with disabilities but instead also includes workers who have a temporary leave of absence mandated by their treating medical professional. This is especially important when employers are planning to dismiss a certain person.

The legal institution of “enhanced stability” it is established when: (i) the worker suffers from a health condition that impedes or substantially hinders the performance of his or her duties under regular circumstances; (ii) the employer has prior knowledge of said health condition before dismissal and (iii) there is a lack of sufficient legal reason for unilateral termination, which if undertaken would result in discrimination.

Therefore, when employers decide to dismiss a person who has a medical leave of absence, they must previously notify the Ministry of Health and Social Protection to obtain its authorization. Otherwise, unilateral termination would be illegal.

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When workers in an employment relationship have disagreements with apartment buildings as their employers, lawsuits must be filed against the legal entity that is the building (as established in the “Horizontal Property Regime” in Colombia), stated the Supreme Court of Justice of Colombia. These claims, therefore, will be directed against a legal entity that is different from the individuals who are owners of the apartments.

This clarification from the Court is of special importance since there was some confusion as to who had to fulfill said labor obligations. Since buildings under “Horizontal Property Regimes” constitute an independent legal entity with its own rights and obligations, it is therefore called to appear in court and defend itself in judicial processes.

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Due to the massive digital transformation that took place on 2020, The National Tax Administration “DIAN” clarified that for electronic invoices to be valid as securities they must be digitally signed by the biller, as well as meet all additional requirements established in the Colombian Commercial Code and the Colombian Tax Statute.

When generating an invoice, the issuer must digitally sign it in accordance with Resolution No. 00050 of 2016, in order to guarantee its authenticity, integrity, and non-rejection. The issuer may use specialized software or use the DIAN’s free web platform.

The importance of electronic invoices being valid as securities lies in that individuals involved in the transaction have legal remedies for the fulfilment of all obligations contained in them. Additionally, taxpayers may use them as evidence of their income and expenditures.

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The Colombian President signed into law an extension to the Formal Employment Support Program (PAEF in Spanish) until March 2021 and includes worker cooperatives in the program. Companies affected in their income by at least 20% due to the Covid-19 pandemic may opt for a benefit to receive 40% of a monthly minimum wage per employee. This new rule creates a total of seven additional payments, distributed between September, October, November and December of this year and January, February and March of next year.

This law includes trusts as potential beneficiaries of the programs. They do not have to comply with the requirement of being enrolled in the Commercial Registry. Instead, they simply need to have a valid tax ID and be an income tax payer. In addition, companies benefiting from this program will get additional contributions depending on the number of women employed.

The Legal Bonus Payment Support Program (PAP in Spanish) was also extended, in which the Government will make a 50% contribution to the payment of legal bonuses in December of this year to employees earning up to one million pesos.

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According to an opinion by the Ministry of Labor, workers who have  symptoms of Covid-19 must isolate themselves preventively for a period of 14 days, however this is not considered occupational disability. At this stage, there are no payments for additional benefits and the worker must agree beforehand with the employer on the mode  of labor,  either work-from-home or telework. Each employer is responsible for taking the necessary measures to address the situation and it will be the responsibility of the teleworker to comply with them.

If the illness is confirmed, the appropriate entities must assume the appropriate payments. If the illness is  of a common origin then the Health Insurance is responsible, if  instead, its origin is work-related, the Workers’ Compensation Insurance is responsible.

Coughing, fever and shortness of breath are major symptoms of Covid-19, which is why measures were taken which both public and private entities are encouraged to implement; authorization of telework, adopting flexible schedules to reduce the risk of exposure at rush hour and avoid the concentration of workers in their workspace in order to have better air circulation, decreasing the number of face-to-face meetings and avoiding places with a large  amounts of people where interactions with infected people can occur.

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The Ministry of Labor clarified in an opinion that employers must pay the value of the transportation assistance as a digital connectivity assistance to any private or public sector workers earning up to two legal minimum wages.

In addition, it stated that collective agreements between employers, workers and trade union organizations are binding for all parties and must therefore be fully implemented by all parties. These agreements may be amended by the parties to agree to  temporary changes regarding acquired benefits , with the aim of maintaining and protecting employment during the current health emergency in our country.

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The Constitutional Court declared that part of Article 1 of Decree 807 of 2020 that limits the term for taxpayers to be able to benefit from tax refunds or compensation through an abbreviated procedure is unconstitutional.

The Court stated that the establishment of a June 19, 2020 limit was not justified in the explanatory section of the decree nor in later interventions made by the Government.

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Decree 488 of March 27 established that workers who had their income reduced due to the Covid-19 pandemic may make monthly withdrawals from the Public Unemployment Insurance Fund equal to the amount of the reduction in income. The Ministry of Labor additionally stated that workers who fulfill all requirements cannot be denied this benefit and it will remain in force until the health emergency is over.

Lastly, the Superintendence of Finances indicated that the monthly withdrawal amount cannot exceed the amount of the reduction in income, certified by the employer, and will be limited to the available funds in worker’s Public Unemployment Insurance Fund account.

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