Labor Decisions During a Pandemic
#### By: Dr. Nelson María Toro R., attorney, Universidad Católica de Colombia, specialist in Labor and Social Security Law, Master's in Business Administration.
Note: this article was published in July 2020, during the height of the COVID-19 public health emergency. The government measures mentioned (the reduced 3% social-security contribution, mandatory lockdown, government-ordered closures) were temporary and are no longer in force; the content is kept here as a historical reference.
Since March 2020, we've had to change much of our habits, behavior, and daily routines — even how we manage resources in general — all as a result of COVID-19. Lockdown across much of the country, particularly severe in Bogotá, mandatory confinement, the shutdown of our economy, and how long the crisis has dragged on have forced us to rethink our strategic planning to the point that, today, uncertainty worldwide is immense.
In the business world, managers are facing new challenges arising from these conditions. Among the difficult and varied situations we face, it's worth noting that labor decisions always carry financial implications. Very difficult decisions have had to be made — sending staff on early vacation, granting unpaid leave, suspending employment contracts, cutting work hours — all to avoid job losses. The National Government also rolled out support measures: partial wage and bonus payment subsidies and a reduced 3% social-security contribution rate (a measure the Constitutional Court has since struck down as unconstitutional). But those measures have already run their course, and this pandemic has dragged on longer than expected.
All of this leads me to conclude that the labor situation inside our companies needs to be monitored weekly or biweekly, since new government-ordered closures, together with the latest measures to contain contagion, force us to consider different decisions and actions — such as rolling out work-from-home arrangements at companies able to do so, since they fall within the group of businesses that can still operate under current conditions. Under these circumstances, decisions will be made closer to the reality on the ground, as with the latest closure ordered by the national and Bogotá city governments. In some cases, employment contracts will need to be suspended — but always after confirming that every measure suggested by the National Government (in this case, the Ministry of Labor) has been considered and applied, since the Ministry will later review the measures taken within the company. That's why we need to have on hand every document that supported these decisions, before any contract suspension. It's also important for financial statements to reflect the real situation that forced the company to make these decisions, so the justification lines up with what was actually done.
Another difficulty business owners face is managing staff who work in our offices. As employers, we must implement biosecurity measures, adjust our Occupational Health and Safety Management System, stay on top of and document compliance in writing, and go further by making clear to employees that they're required to notify their employer if a family member has contracted COVID-19. We're also responsible for notifying the local health department where the case occurs, as well as the workplace insurer (ARL) and health provider (EPS) — this is our duty, above and beyond the financial consequences of failing to act on these situations.
All of this requires us to take on these challenges with the seriousness and responsibility that situations arising from here on demand, since decisions made now can seriously and financially affect our companies and put them at real risk.
For any decisions you need to make during this time, count on us — at Consejurídico, #WeWantToBeThere.
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