Administrative labor sanctioning

On July 27, 2022, the Ministry of Labor issued Decree 1368 of 2022, which regulates the faculty granted by the current National Development Plan to the Ministry of Labor, for ordering the suspension and termination of a preliminary investigation or an administrative labor sanctioning proceeding by mutual agreement between both parties.

The main changes in the regulation are indicated below:  

  1. Scope of application. Preliminary investigations and administrative sanctioning proceedings for violation of labor standards are subject to suspension or termination by mutual agreement. 
  2. Which investigations or proceedings cannot be suspended or terminated by mutual agreement? Those related to child labor or forced labor, as well as investigations or proceedings that conclude in a labor formalization agreement and all those that imply recurrence in the commission of infractions.
  3. When does suspension or termination by mutual agreement take place? Suspension or termination may only take place during the preliminary investigation stage, between the beginning of the formulation of charges and the presentation of the defense, or between the beginning of the evidentiary period and the presentation of pleadings.
  4. What does the Ministry of Labor require? Suspension or termination will be conditioned to the acknowledgment by the investigated parties of the non-compliance with labor or social security regulations, and that they guarantee the implementation of measures aimed at correcting the causes for which the administrative action was initiated, as well as the implementation of an Improvement Plan.
  5. Improvement Plan. 
  • What is it? It is the agreement provided by the Ministry of Labor to the investigated party, which includes (i) the actions to be taken by the latter to remedy the violation under investigation, (ii) the timetable to implement them, and (iii) the means to verify compliance with the proposed measures. 
  • Purpose. It seeks to simplify the administrative sanctioning proceeding as a result of the parties' will.
  • Effects. Once the improvement plan has been complied with, the following steps shall be taken: 
    • If the improvement plan was executed during the preliminary investigation stage, the administrative proceeding will be archived without imposing any sanction.
    • If the improvement plan was executed between the filing of the charges and the presentation of the defense, the sanction will be reduced by one-half. 
    • If the improvement plan was executed between the evidentiary period and the last day of the term allowed for the presentation of pleadings, the sanction shall be reduced by one third.
  • In case of non-compliance with the improvement plan, the Ministry of Labor will then resolve the respective administrative proceedings accordingly.
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