Work as it should be!

Transcription

1 Work as it should be! LABOR FORMALIZATION POLICY Marcela Mosquera Vásquez Sub-Directorate of Labor Formalization and Protection

2 Content 1. Formalization of Labor General Aspects 1.1 Cross-section of informality in Colombia National Development Plan for the reduction of labor informality in Colombia A) General lines B) Prioritized Sectors C) Working Modalities 2. Labor Formalization Policy 2.1 Addressing: sectoral, regional and population groups 2. General Results

3 Cross-section of informality 2010 Rate of informality by economic sectors in Colombia 2010 National Total Agriculture, fisheries, livestock, hunting, forestry Commerce, hotels, restaurants Construction Manufacturing industry Transport, storage and communications Real estate activities Mining exploitation Financial intermediation Community, social and personal services Electricity, Gas and Water supply Source: DANE Cálculo: Mintrabajo (crop Jan-Mar 2010)

4 National Development Plan General Lines 1. Adapt current legislation to the new labor market conditions and establish effective regulation 2. Guarantee stability in the labor market in order to generate conditions for employability that will allow for mobility from one job to another, instead of job stability. 3. Increase awareness about the benefits of formalization.

5 National Development Plan Sectors prioritized by the NDP URBAN: Construction Transport Commerce Services RURAL: Agriculture Mining

6 National Development Plan WORKING MODALITIES Dependent Workers Independent Workers Affiliation and contribution in the PILA to health, pension, occupational risks and family subsidies. Affiliation and contribution in the PILA to health, pension, occupational risks and family subsidies.(optional) Recognition of all social loans. Characterization by sectors

7 Policy for Formalization of Labor Following the NDP, the labor formalization policy has pursued strategies in 4 dimensions: 1. Sectoral: a)law 1429 of 2010 Micro, Small and Medium Enterprises b)formalization Agreements Medium and Large Enterprises c)formalization Pacts Unions d)decrees: Guarantee Social Security for taxi drivers, community mothers and domestic service e)alternative mechanisms for social security affiliation - Agriculture 2. Regional: a)technical Working Sessions with territorial entities: Implementation of measures according to working calendars coordinated with territorial entities 3. Population groups: a)beps b)quotations for periods less than a month 4. Awareness: a)conceptualization of Formalization of Labor Formalization Kit b)formalization Network

8 Creation of Employment Sectoral- Leg.1429 of 2010 Creation of employment Benefits Reductions in income tax and parafiscal contributions as well as other nominal contributions for two years For whom? Employers who contract new employees*: People less than 28 years of age People undergoing transition, reintegration process and condition of disability (this benefit is for three years) Women over 40 years and that have been without a work contract in the previous 12 months Those who earn interest of less than 1.5 SMMLV Heads of families in levels 1 and 2 of the SISBEN * Benefits cannot be acucmulated

9 What is it? Sectoral- Formalization of Labor Agreements Agreements to enhance laboral formalization between the Ministry of Labor and enterprises. What does it seek? Guarantee compliance with laboral norms in order to avoid possible sanctions established for non-compliance with labor legislation Incentivize the signing of contracts with: Intention of permanence and Recognition of the labor rights of the workers.

10 Sectoral- Taxi-drivers, community mothers and domestic service Among other normative measures, we have Decree 289 of 2014 establishes the labor relationship between community mothers and administrative entities of the Community Welfare Centers Program Decree 1047 of 2014 establishes the regulations that secure the affiliation of land-based individual automobile passenger transport services in taxi vehicles to the Integral Social Security System and additionally makes regulations for some aspects of the service for its operability Law 1595 of 2012: which ratifies the convention on decent work for domestic workers

11 Sectoral- Alternative mechanisms for afiliation, contribution and collection (rural social security) Primary Sector Decree Project Objective Regulate access by informal population that carries out agriculture, forestry, llvestock, fisheries, poultry, and/or beekeeping to mechanisms of protection in old age or to the general system of occupational hazards. Ministry Approval process Ministry of Labor Ministry of Agriculture Revised by all areas. Last version sent on 08/19/2014 to the Vice Minister Once approved by the Vice Minister, dialogue with the Ministry will begin. Ministry of Health and Social Protection Has been sent for revision.

12 Population groups - Periodic Economic Benefits What are they and what is their purpose? The PEBs are a Flexible Retirement Protetion Scheme for people who lack sufficient income 1. It is based on a system of flexible and voluntary personal savings that has the purpose of generating an interest that is proportional to the quoted amount for old age. Who has access to it? Independent people with incomes lower than the minimum wage. People that have started paying but for some reason cannot receive a pension. People included in Sisben I, II y III. What are the incentives? Temporary incentives (insurance) and system administration costs. Periodic incentives (subsidies up to 20% of savings). 1.As a consequence of the informality of the economic activity that they are undertaking or because they earn less than the monthly minimum wage.

13 Population groups- Quotations for periods less than a month Requirements for workers Are under working contracts. Work less than a month (maximum of 21 days in a calendar month). Earn less than 1 SMMLV. Those who work for periods less than a month are outside insurance coverage. DOMESTI C SERVICE SUPPORT PERSONNEL DAY LABORERS Current situation TEMPORARY COMMERCIAL WORKERS OTHERS

14 Awareness Laboral Formalization KIT Volume 1: Formalization Volume 2: Formalization of Employment and Social Security Volume 3: Formalization of labor relations Volume 4: Labor Formalization Agreements

15 Awareness - National Network for Formalization of Labor Decree 567 of 2014 Qué What is es? it? Vehículo Vehicle for para the implementation la implementación of strategies de las estrategias and policies o of políticas formalization de formalización with a group of con national un conjunto and local de institutions instituciones de orden nacional y local Para Why? qué? Para To contribute contribuir to al the aumento growth of de social cobertura security de coverage seguridad in Colombia social en Colombia Para For whom? quien? Para For employees empleados and y employers empleadores in micro, de la small mediana, and medium pequeña enterprises, y microempresa, inclusive as well as self-employed a los auto-empleados workers Cómo? How? Mediante Through promotion, la promoción, training, capacitación, guidance, accompaniment, orientación, acompañamiento, affiliation, follow-up afiliación, and control el seguimiento y el control De Whose quien is the es la network? red? Del The gobierno National Government, nacional, liderada led by the por Ministry el Ministerio of Labor del Trabajo

16 Results 2014 National Total Agriculture, fisheries, livestock, hunting, forestry Commerce, hotels, restaurants Construction Manufacturing industry Transport, storage and communications Real estate activities Mining exploitation Financial intermediation Agriculture, fisheries, livestock, hunting, forestry Average decrease 91,2% 86,8% -4,4% Commerce, hotels, restaurants 78,4% 74,9% -3,5% Construction 78,2% 71,1% -7,1% Mines and quarries 64,1% 44,2% -20,0% Community, social and personal services Transport, storage and communications 48,3% 42,5% -5,9% 67,9% 61,7% -6,2%

17 Resultados 2014 As a result of the efforts of the National Government to reduce informality, we can see that there has been a decrease of 8.1% between 2010 and 2014 Rate of Informality in Colombia Year Unemployment rate Employed Rate of informality , , , , , ,3 * Formalized jobs measured through pension quotations. Source: GEIH-DANE Jan-Mar quarter

18 Work as it should be! Thank you