Latest developments regarding Cooperative Work Associations in Colombia
Labor Colombia Alert 1-2018
The highest administrative Court in Colombia -the “Consejo de Estado”- recently annulled several important rules regarding Cooperative Work Associations -known in Colombia as Cooperativas de Trabajo Asociado. Through a Decision emitted on the 19th of February, 2018, the Court declared articles 2, 4 -paragraphs first and third-, 5, 9 and 10 of Decree n°. 2025 of 2011 to be null and unenforceable.
These norms prevented public and private companies from hiring third parties to execute activities included within their ordinary activities through these Cooperative Associations, forbidding doing so and establishing fines for the unlawful use of these entities.
The articles were declared unenforceable because the Court considered that the Executive exceeded its powers with their expedition. Therefore, the prohibition of hiring these companies is temporarily allowed until a new set of rules is emitted, should the Government insist on this regulation.