Colombia: New Settlement Statute and impact on labor matters

In brief

The Congress of the Republic enacted Law 2220 of 2022, by means of which it issued the Settlement Statute and created the National Settlement System ("Law").

The Settlement as a dispute resolution mechanism is a fast and expeditious way to achieve the solution of differences between the parties, with the help of a neutral third party, which suggests settlement formulas and attests to what has been agreed between the parties. What is agreed upon is final and binding for the parties. In a settlement, the parties make mutual concessions in order to avoid possible litigation.


The Government has until 30 December 2022 to specify the conditions settlement centers must comply with in order to operate virtually.

Even though, before the Law, the parties could already enter into settlement agreements (and may continue to do so), having dispute resolution mechanisms in which neutral third parties participate will be of great help to avoid long and costly processes in a society that is increasingly litigious. Differences will be resolved in a timely manner, providing legal certainty and reducing costs.

Relevant labor aspects:

The Law establishes and includes the following aspects, among others:

  • Settlement may be judicial or extrajudicial.
  • The use of new technologies during settlement hearings with the purpose of holding them through virtual means.
  • Settlement hearings may be held in person, digitally or electronically, or both.
  • Settlement centers must adopt the use of information technologies for settlement processes, as well as include this modality in their regulations.
  • Settlement in labor matters does not constitute a procedural requirement.
  • All matters of a labor and social security nature that are susceptible to release and waiver, which do not include minimum non-negotiable rights, and connected with the rights of which the holder has the capacity to dispose of, may be settled.
  • In labor matters, the following can settle extra-judicially: (i) the competent labor judges according to their territorial jurisdiction, (ii) the labor inspectors, (iii) the regional and sectional delegates of the Ombudsman's Office, and (iv) the agents of the Public Prosecutor's Office in labor matters. In the absence of all of the above, a settlement can be carried out by the ombudsmen, or the municipal civil or promiscuous judges, if the matter is within their jurisdiction.

National Settlement System:

Additionally, with the creation of the National Settlement System, the Law seeks to implement a public settlement policy, tending to formulate and adopt a strategic plan through which establishes programs, objectives, strategies, actions, goals and indicators to achieve the promotion, strengthening and development of the settlement.

Validity of the Law:

The Law enters into force six months after its enactment, that is, on 1 January 2023.

To access the Spanish version click here.


Copyright © 2024 Baker & McKenzie. All rights reserved. Ownership: This documentation and content (Content) is a proprietary resource owned exclusively by Baker McKenzie (meaning Baker & McKenzie International and its member firms). The Content is protected under international copyright conventions. Use of this Content does not of itself create a contractual relationship, nor any attorney/client relationship, between Baker McKenzie and any person. Non-reliance and exclusion: All Content is for informational purposes only and may not reflect the most current legal and regulatory developments. All summaries of the laws, regulations and practice are subject to change. The Content is not offered as legal or professional advice for any specific matter. It is not intended to be a substitute for reference to (and compliance with) the detailed provisions of applicable laws, rules, regulations or forms. Legal advice should always be sought before taking any action or refraining from taking any action based on any Content. Baker McKenzie and the editors and the contributing authors do not guarantee the accuracy of the Content and expressly disclaim any and all liability to any person in respect of the consequences of anything done or permitted to be done or omitted to be done wholly or partly in reliance upon the whole or any part of the Content. The Content may contain links to external websites and external websites may link to the Content. Baker McKenzie is not responsible for the content or operation of any such external sites and disclaims all liability, howsoever occurring, in respect of the content or operation of any such external websites. Attorney Advertising: This Content may qualify as “Attorney Advertising” requiring notice in some jurisdictions. To the extent that this Content may qualify as Attorney Advertising, PRIOR RESULTS DO NOT GUARANTEE A SIMILAR OUTCOME. Reproduction: Reproduction of reasonable portions of the Content is permitted provided that (i) such reproductions are made available free of charge and for non-commercial purposes, (ii) such reproductions are properly attributed to Baker McKenzie, (iii) the portion of the Content being reproduced is not altered or made available in a manner that modifies the Content or presents the Content being reproduced in a false light and (iv) notice is made to the disclaimers included on the Content. The permission to re-copy does not allow for incorporation of any substantial portion of the Content in any work or publication, whether in hard copy, electronic or any other form or for commercial purposes.