Companies No Longer Required to Pay Social Security Contributions for Independent Contractors

New Legislation Enacted

Pursuant to Act 1955 of 2019, companies are no longer obliged to pay social security contributions for their independent contractors. Act 1955, among other provisions, states that independent contractors must pay their health and pension contributions monthly.

Disciplinary Procedure Notifications Communicated through Social Media

Precedential Decision by Judiciary or Regulatory Agency

The Labor Ministry recently issued an opinion on whether an employer may notify a worker about a disciplinary decision, through a social media application, such as WhatsApp. Per the Labor Ministry, the communication will be valid only if (i) the internal working regulations of the company expressly allows it; (ii) the employee has a mobile phone as a work tool; and (iii) the company guarantees the employee´s right to due process (as required under the law and in Judicial Decision 593 of 2014 of the Constitutional Court).

Unemployment Aid Savings Available to Finance Studies Abroad

Precedential Decision by Judiciary or Regulatory Agency

Pursuant to Act 50 of 1990, employees can collect funds from their Unemployment Aid Fund savings once their employment contract terminates or for living or educational purposes while the contract is still in force. Per a recent opinion issued by the Ministry of Education, employees can collect their savings to cover college education expenses, including for studies abroad. To claim such funds, the employee must provide the required documentation to prove that the funds will be used for college expenses.

Employment Termination Agreement with Sick Employees

Precedential Decision by Judiciary or Regulatory Agency

The Labor Chamber of the Supreme Court recently clarified what companies must consider for an agreement to terminate an employment contract with a sick employee to be valid. First, the reason for the termination cannot be the employee´s sickness or health condition. Second, the agreement must expressly remark that both parties are aware of the employee´s health situation. Otherwise, a labor judge may invalidate the termination agreement.