Everything you need to manage your workforce
Your global team, locally employed
Set up and manage entities
Manage all admin tasks from one place
Localised employment contracts
Relocate your team anywhere
Track, approve, and manage time off
Have the latest guide for hiring in Colombia through Native Teams
Download Colombia Guide
Please fill out the form to receive a free copy of our Colombia payroll and benefits guide
Before starting the hiring process in Colombia, it’s crucial to understand the country’s employment agreements, tax system, hiring practices, and anti-discrimination laws.
As an employer, you'll also be responsible for deducting funds to cover your workers’ taxes and benefits, including social security.
To attract and retain high-calibre professionals, ensure you offer appealing benefits packages. Also, following Colombia’s cultural customs and business protocols can significantly boost commitment and foster a favourable rapport with your local workforce.
Colombia offers several compelling reasons for hiring remote employees. Firstly, Colombia boasts a diverse and skilled workforce, with professionals fluent in English and expertise in various fields such as technology, design, customer support, and more.
Moreover, the Colombian government has been working to create a more favourable legal and business environment for remote work, making it easier for companies to engage with remote employees.
Finally, many remote workers are attracted to Colombia for its quality of life, offering a mix of urban amenities, natural beauty, and vibrant culture.
Native Teams’ Employer of Record services help you hire and pay your team through an owned infrastructure in Colombia. We handle everything from legal employment to ensuring your team is paid and managed compliantly and with care, without any third parties involved.
Hire your first Colombian employee with Native Teams.
Before hiring your first employee in Colombia, it’s essential to get familiar with the following legal requirements:
Employment relationships in Colombia are primarily governed by the Código Sustantivo del Trabajo (CST), which regulates key aspects of employment, including contracts, working hours, wages, employee benefits, and termination procedures.
The Ministerio del Trabajo (Ministry of Labour) supplements the CST by issuing regulations covering occupational health and safety, labour inspections, wage adjustments, and other employment-related matters.
The Colombian Constitution also protects fundamental labour rights, including fair wages, safe working conditions, and freedom of association. The Constitutional Court plays an important role in interpreting these constitutional rights in relation to employment law.
Colombia follows international labour standards established by the International Labour Organisation (ILO), which influence domestic employment legislation.
Employees have the right to form and join trade unions and participate in collective bargaining. Collective bargaining agreements may establish employment conditions and benefits that exceed the minimum requirements set out in the CST.
Under the Código Sustantivo del Trabajo (CST), Colombia recognises several types of employment arrangements, each with specific requirements regarding duration, termination and probationary periods.
Fixed-term contracts
Fixed-term contracts have a defined duration of up to four years and may be renewed for equal or shorter periods, subject to the applicable renewal rules.
For contracts lasting less than one year, employers may renew the agreement up to three times for the same or a shorter period. From the fourth renewal onwards, the renewal period must be at least one year.
The probationary period cannot exceed two months or, for contracts shorter than one year, one-fifth of the contract's duration.
Indefinite-term contracts
Indefinite-term contracts have no predetermined end date and provide employees with greater employment stability.
These contracts may be terminated by mutual agreement or under the applicable contractual and legal conditions.
A probationary period of up to two months may apply, provided it is expressly included in the employment contract.
Task-based contracts
Task-based contracts are used for employment linked to a specific project or assignment and end when the agreed work is completed.
The contract should clearly define the project's scope, milestones or conditions determining its completion.
Where a probationary period applies, it must be agreed upon by both parties and cannot exceed two months.
Occasional, accidental or transitory contracts
These contracts are used for temporary activities that fall outside the company's regular business operations.
They generally last less than one month and are subject to specific legal requirements.
Service contracts
Service contracts are civil agreements between a company and an independent contractor rather than employment contracts governed by the CST.
Contractors perform their services with a degree of technical and administrative autonomy and assume the risks associated with their work.
Unlike employees, independent contractors are not generally entitled to statutory employment benefits such as paid leave or severance pay. The contracting company is also not responsible for managing employment-related deductions or providing these benefits.
Employment contracts in Colombia must clearly define the terms and conditions of employment, including the employee's responsibilities, remuneration, working hours, and contract duration.
Employment documents must be written in Spanish or translated into Spanish to meet the requirements of Colombian authorities. Employers are therefore advised to prepare contracts in Spanish or in a bilingual format.
An employment contract should include the following information:
For employees working remotely, whether from home or another location outside the employer's usual workplace, the employment contract must include a written telework arrangement setting out the applicable terms and conditions.
Employers must also provide the necessary working tools and a telework allowance or reimbursement of remote working expenses.
Employment contracts may include additional provisions covering confidentiality, non-competition, and industry-specific requirements to protect business interests and ensure compliance with applicable regulations.
Download a free employment contract for Colombia through Native Teams.
In Colombia, employment contracts may be concluded orally, in writing, or electronically. While oral agreements are legally valid, written contracts are generally recommended to ensure that employment terms are clearly documented and enforceable.
Written employment contracts are mandatory for fixed-term employment, telecommuting, and remote working arrangements.
Oral contracts are typically used for informal or short-term employment arrangements. However, they can make it more difficult to establish the agreed terms and resolve disputes due to the lack of written documentation.
Written contracts are the preferred option for formal employment relationships. They should clearly specify the employee's job responsibilities, salary, working hours, and contract duration, along with other applicable employment conditions.
Electronic employment contracts are regulated by Law 527 of 1999 and provide a legally recognised alternative to traditional written agreements. To be legally binding, they must use secure electronic signatures and comply with the applicable digital documentation requirements. Electronic contracts are particularly useful for remote and international employment arrangements.
Employment contracts are required for both fixed-term and indefinite-term employment relationships, although the requirement to document the agreement in writing depends on the type of arrangement.
Working hours in Colombia are regulated by the Código Sustantivo del Trabajo (CST) and Law 2101 of 2021, which introduced a gradual reduction of the standard working week from 48 to 42 hours.
The reduction follows this schedule:
The standard working week may be distributed over five or six days, provided employees receive at least one day of rest.
Employees working an eight-hour day must receive a minimum rest break of one hour, while those working between four and eight hours are entitled to a 30-minute break.
Certain employees, including those in managerial or directorial positions, domestic service workers, and employees performing intermittent work, are exempt from the standard maximum working hours.
For work organised into successive shifts, the maximum working time may extend to 56 hours per week, including overtime.
Flexible working arrangements are also permitted. Employers and employees may agree to schedules of up to nine hours per day, with an average of 42 hours per week by 2026, without additional pay premiums.
Continuous shift arrangements may also be agreed without night or holiday premiums, provided employees receive a paid day of rest.
Overtime
Overtime is subject to a maximum of two hours per day and 12 hours per week.
Under the working hours rules described in the source, daytime overtime performed between 6:00 AM and 9:00 PM is compensated at 125% of the employee's regular hourly wage, representing a 25% premium.
Where an employee's daily working schedule reaches 10 hours, no additional overtime may be performed that day.
In Colombia, night work is defined as work performed between 9:00 PM and 6:00 AM. Employees working during these hours are entitled to a night shift premium of at least 35% above their regular hourly wage.
Employees working night shifts are also entitled to a reduced working day compared to the standard eight-hour shift. The reduction depends on applicable collective bargaining agreements or company policies but is typically around one hour.
Employers must generally obtain the employee's consent before assigning night shifts, except in cases of urgent necessity.
Employees in Colombia are entitled to rest breaks during the working day, as well as different types of leave for personal, family, and civic responsibilities.
Rest periods
Employees working more than six consecutive hours are entitled to a meal break of at least 30 minutes. For working days exceeding eight hours, employees are entitled to a one-hour rest break.
These breaks are unpaid and are not counted as part of the employee's working hours.
Although the law does not specify exactly when breaks must be taken, employers must schedule them at appropriate intervals throughout the working day to help prevent fatigue.
Types of leave
Colombian labour law provides several types of leave, including:
In Colombia, employees are entitled to 15 working days of paid annual leave after completing one year of continuous service with the same employer, as established under Article 186 of the Código Sustantivo del Trabajo (CST).
Annual leave accrues progressively throughout employment, meaning employees cannot take their full annual leave entitlement at the beginning of their employment.
The timing of annual leave should be agreed upon between the employer and employee, taking into account the company's operational needs.
During annual leave, employees are entitled to receive their regular wages.
In Colombia, employee remuneration is generally structured as either an ordinary salary or an integral salary, depending on how statutory benefits and additional payments are incorporated into the employee's compensation.
Ordinary salary
An ordinary salary consists of the employee's regular monthly remuneration, with statutory benefits and bonuses paid separately.
Under this structure, employees receive their base salary alongside additional payments, including the 13th and 14th salaries. The full ordinary salary is subject to taxation.
Integral salary
An integral salary combines the employee's base salary with statutory benefits and allowances into a single fixed monthly payment.
The minimum integral salary is equivalent to 13 statutory minimum monthly wages, consisting of:
For social security purposes, contributions are calculated on 70% of the integral salary, while the remaining 30% represents the benefits component.
Overtime and additional compensation
Daytime overtime is compensated at 125% of the employee's regular hourly wage, representing a 25% premium.
According to the supplied information, overtime performed during night shifts, Sundays, or public holidays is compensated at 175% of the regular hourly wage, representing a 75% premium.
Overtime is limited to two hours per day.
Part-time employment is not permitted for employees hired through an Employer of Record (EOR) arrangement in Colombia, according to the supplied requirements.
To calculate the salary and taxes in Colombia, click here.
In Colombia, employees are entitled to paid sick leave when they are unable to work due to illness, provided they submit a valid medical certificate.
Under Article 227 of the Código Sustantivo del Trabajo (CST), the compensation described in the supplied legal information varies depending on the employee's length of service:
Employees are generally required to provide a medical certificate to support their absence and entitlement to sick leave.
In addition to paid leave, employees may request unpaid leave, subject to their employer's approval.
In Colombia, parental leave provides paid time off for new parents, with financial support from the Social Security Health System (EPS). Parental leave provisions cover maternity, paternity, breastfeeding and adoption leave.
Fathers are entitled to eight working days of paid paternity leave, which must be taken consecutively and immediately following the birth of their child.
Mothers are entitled to 18 weeks of paid maternity leave, which is generally divided into:
Alternatively, mothers may choose to take two weeks of prenatal leave and 16 weeks of postnatal leave.
In Colombia, employees are entitled to paid maternity, paternity and adoption leave, provided they meet the applicable eligibility requirements and are affiliated with the Social Security Health System (EPS).
Paternity leave
Fathers are entitled to eight working days of paid paternity leave, which must be taken consecutively, starting immediately after the birth of their child.
To qualify, the father must be formally employed, affiliated with EPS, and married to or in a legally recognised domestic partnership with the child's mother. Supporting documentation, including the child's birth certificate, must also be provided.
Maternity leave
Mothers are entitled to 18 weeks of paid maternity leave, which can be divided into prenatal and postnatal periods:
To qualify, the mother must be formally employed and affiliated with EPS. She must also have made the minimum required social security contributions before the expected delivery date, generally at least four weeks.
A medical certificate confirming the pregnancy and expected delivery date is required.
Adoption leave
Female employees who adopt a child are entitled to 18 weeks of paid adoption leave, while male employees are entitled to eight working days. Both benefits are paid at the employee's full salary.
Adoptive parents must be formally employed, affiliated with EPS, and provide the required documentation, such as an adoption placement notice.
Same-sex couples are entitled to the same adoption leave benefits as heterosexual couples.
In Colombia, employment contracts may be terminated for several reasons, including legal grounds, dismissal with or without just cause, and employee resignation. The applicable requirements and compensation depend on the circumstances of termination.
Termination on legal grounds
Under Article 61 of the Código Sustantivo del Trabajo (CST), employment contracts may end due to objective circumstances, such as the employee's death or the expiry of a fixed-term contract.
Termination with just cause
Employers may terminate an employment contract with just cause based on one or more of the grounds established under Article 62 of the CST.
The employer must identify the facts supporting the dismissal and the contractual or legal obligations that have been breached. For evidential purposes, the termination decision must be documented in writing.
Termination without just cause
Employers may generally terminate an employment contract without just cause, provided they pay the employee the applicable statutory compensation under Article 64 of the CST.
However, this right is subject to restrictions for employees who benefit from special employment stability protections, which may limit the employer's ability to terminate their employment unilaterally.
Employee-initiated resignation
Employees may terminate their employment by submitting a written resignation letter, generally observing any applicable notice period specified in their employment contract.
According to the supplied information, failure to comply with the notice period may affect certain employment benefits.
Regardless of the reason for termination, employees are entitled to receive any outstanding employment benefits, including compensation for unused annual leave and proportional 13th and 14th month salary payments, where applicable.
In Colombia, ordinary dismissal refers to the termination of an employment contract with just cause, as regulated by Article 62 of the Código Sustantivo del Trabajo (CST).
Employers may terminate employment for reasons related to employee conduct or other legally recognised circumstances. Grounds for dismissal include:
Before dismissing an employee with just cause, employers must respect the employee's right to due process and defence. This requires conducting an internal disciplinary procedure in which the employee is informed of the specific allegations, given access to the supporting evidence, and allowed to respond to and challenge the claims.
Under Constitutional Court ruling C-593 of 2014, employees must also have the opportunity to appeal the disciplinary decision. Recent judicial interpretations further support the right to an internal review or second-instance assessment within the company.
Employees who belong to a trade union may request the participation of up to two union representatives during the disciplinary process.
Once employment is lawfully terminated, the contractual relationship and the parties' ongoing obligations come to an end. However, the employer must still settle any outstanding amounts owed to the employee, including unpaid wages and accrued employment benefits.
In Colombia, employment contracts may generally be terminated by either party with immediate effect, without a mandatory notice period. However, the Código Sustantivo del Trabajo (CST) establishes specific notice requirements for certain types of termination.
For fixed-term contracts, employers must provide at least 30 days' written notice before the contract expires if they do not intend to renew it, under Article 45 of the CST.
For certain grounds of termination under Article 62 of the CST, including specific disciplinary breaches, employers must provide at least 15 days' written notice before dismissing the employee.
Employees are also required to provide 30 days' notice of resignation under Article 47 of the CST. However, following Law 789 of 2002, employees cannot be financially penalised for failing to observe this period, making the requirement effectively unenforceable.
Compensation for termination without just cause
When an employer terminates an employment contract without just cause, the employee is generally entitled to compensation based on the type of contract:
Under Article 65 of the CST, employers must also inform employees of the status of their social security and payroll contributions for the three months preceding termination. This information must be provided within 60 days of termination. Failure to comply may result in the termination being declared ineffective.
Challenging dismissal
Employees who believe they have been dismissed without legal justification may challenge the termination before the Colombian labour courts.
Employees generally have three years to initiate legal proceedings. This limitation period may be interrupted by submitting a formal written claim to the employer, potentially restarting the period for bringing a court action.
Dismissal disputes may proceed through two judicial instances, with the possibility of an appeal to the Supreme Court of Justice in cases involving sufficiently significant compensation amounts.
If the court determines that the dismissal was unjustified, the employer may be required to pay compensation for wrongful dismissal, including applicable inflation adjustments.
In certain cases involving employees with special legal protections, the court may order reinstatement under the employee's previous employment conditions, together with back pay and applicable penalties.
These protections may apply to trade union leaders and certain employees hired before 1981 who fall within the scope of Decree 2351 of 1965.
In Colombia, unemployed individuals may be eligible for unemployment benefits, depending on their previous contributions to the Social Security system (EPS), employment history, and circumstances of unemployment.
The amount and duration of unemployment benefits depend on several factors, including previous earnings, total contributions, and the reason for unemployment. Benefits are generally capped and intended to provide temporary financial support while individuals look for new employment.
To continue receiving benefits, unemployed individuals must actively seek employment and demonstrate ongoing efforts to find work. This may include submitting job applications, attending interviews, and participating in training programmes or employment workshops.
Individuals may also be required to provide evidence of their job search activities, such as application records, correspondence with prospective employers, or proof of attendance at job fairs and training sessions.
Failure to demonstrate sufficient job-seeking efforts may result in the suspension or termination of unemployment benefits.
In Colombia, employees who are dismissed without just cause are entitled to statutory compensation, calculated according to their employment contract, salary and length of service.
When an employer terminates an employment contract with just cause, the employee is not entitled to compensation for dismissal.
For termination without just cause, the following compensation rules apply:
For employees hired after 27 December 2002 under indefinite-term contracts, compensation is calculated as follows:
In Colombia, probationary periods are regulated by Articles 76 to 78 of the Código Sustantivo del Trabajo (CST). They allow employers to assess an employee's suitability for a role while giving both parties an opportunity to determine whether the employment relationship meets their expectations.
The maximum probationary period depends on the type of employment contract:
During the probationary period, either the employer or employee may terminate the employment contract without providing a detailed justification and with reduced notice requirements compared to termination outside the probationary period.
Employees retain their full statutory employment rights throughout the probationary period, including salary, employment benefits, and applicable social security contributions. They also continue to accrue paid annual leave during this time.
Intellectual property rights in Colombia are regulated by domestic legislation, international treaties, and Andean Community Decisions 486 and 351. The Colombian Constitution also provides for the protection of intellectual property, including patents, trademarks, and other industrial property rights.
Colombian law distinguishes between two main categories of intellectual property:
Under Articles 28 and 29 of Law 1450 of 2011, economic rights to intellectual property created under an employment or service agreement are generally presumed to transfer to the employer to the extent necessary for the agreed activities. These provisions apply to written agreements.
However, employees retain their moral rights as creators, including the right to be recognised as the author of their work and to object to modifications that affect its integrity.
The same intellectual property provisions apply to works created under both employment contracts and independent service agreements.
Employee data protection in Colombia is governed by Law 1581 of 2012 and Article 15 of the Colombian Constitution, which protect individuals' fundamental right to privacy and their right to update and correct personal information held in databases.
Employers are responsible for protecting the personal information they collect and process during the employment relationship. This includes implementing appropriate technical and organisational security measures to prevent unauthorised access, disclosure or misuse of employee data and company information.
Employers must obtain express employee consent when processing sensitive personal data, including information relating to:
Employers must also handle other employee information, such as names, identification numbers, marital status and educational records, in accordance with applicable data protection requirements.
Employees retain the right to access, update and correct their personal information held by their employer.
In Colombia, Article 44 of the Código Sustantivo del Trabajo (CST) allows employers to restrict employees from engaging in certain competitive activities or working for competitors during their employment.
However, non-compete clauses are only enforceable during the employment relationship. Any contractual restrictions that prevent employees from working for competitors or engaging in competitive activities after their employment ends are considered invalid and cannot be enforced.
This limitation protects employees' constitutional right to freely pursue employment opportunities after leaving their employer.
Remote work in Colombia is regulated by Law 1221 of 2008, which allows employees and employers to agree on permanent remote or hybrid working arrangements.
Colombian law distinguishes between teleworking, which covers formally agreed remote working arrangements, and home office, which is intended for exceptional and temporary circumstances.
Under Law 2088 of 2021, home office arrangements may be implemented when exceptional circumstances prevent employees from working at their usual workplace. This includes situations such as security threats or unexpected events that disrupt office operations. In these cases, employers may introduce temporary home office arrangements without requiring the employee's prior agreement.
For permanent remote or hybrid work, employers must comply with Law 1221 of 2008 and Decree 1227 of 2022.
These arrangements must be mutually agreed upon by the employer and employee and formally documented through an amendment to the employment contract.
The amendment must clearly establish the conditions of remote work, including:
Unlike temporary home office arrangements, permanent teleworking cannot be introduced unilaterally and requires the agreement of both parties.
In Colombia, permanent teleworking arrangements require mutual agreement between the employer and employee, documented through an amendment to the employment contract. The agreement must specify the working schedule, cybersecurity requirements, and equipment needed to perform the employee's duties.
Under Decree 1227 of 2022, employers and employees have specific responsibilities to ensure that remote work is carried out safely and effectively.
Employer's obligations
Employers must ensure that remote workstations meet appropriate ergonomic and comfort standards and that remote employees are included in the company's occupational health and safety policies.
They must also establish clear communication channels through which employees can report issues related to their remote working arrangements.
Employers are generally responsible for providing the necessary equipment, software, supplies, and materials for employees to perform their duties. However, employees may use their own equipment if both parties agree to this arrangement.
Employers and employees may also agree on reimbursement for additional remote working expenses, such as electricity and telecommunications costs. This reimbursement is not mandatory unless agreed upon by both parties.
Employee's responsibilities
Remote employees must comply with their general employment obligations and the specific requirements of their teleworking arrangements.
These include:
Unlike permanent teleworking, temporary home office arrangements may be introduced unilaterally by employers in exceptional circumstances, subject to the applicable legal requirements.
In Colombia, employers are responsible for maintaining a safe working environment for all employees, including those working remotely. Occupational health and safety requirements are governed by Law 9 of 1979, Decree 614 of 1984, Decree Law 1295 of 1994, and Resolution 0312 of 2019.
Employers must implement an Occupational Health and Safety Management System (SG-SST), conduct workplace risk assessments, provide appropriate personal protective equipment, and ensure employees receive adequate health and safety training.
Employer responsibilities
Employers must include remote employees in their internal occupational health and safety policies and procedures. This includes ensuring that home workstations meet appropriate ergonomic, comfort, and safety standards.
They must also establish clear communication channels for employees to report work-related accidents, illnesses, and safety concerns.
Employers are responsible for providing training on safe working practices and the proper use of equipment and tools required for remote work.
Employee responsibilities
Employees working remotely must maintain a safe and suitable workspace, ensuring that their working environment meets ergonomic requirements and is free from identifiable hazards.
They must also follow the employer's health and safety guidelines, use work equipment correctly, and promptly report any accidents, illnesses, or safety issues arising during remote work.
Hiring employees from Colombia offers a few significant advantages over other countries.
Colombia is known as a country with a growing pool of highly skilled professionals, making it easy to find skilled workers in the fields of tech, customer service, and creative industries. Many of these professionals are bilingual and have increasing English proficiency, making communication with clients and team members smooth and easy.
Another significant advantage is the cost-effectiveness of hiring team members. Salaries in Colombia are often lower than in other countries in North America or Europe, which allows companies to access high-quality talent without the steep costs associated with these regions.
Finally, Colombia offers a stable and business-friendly environment. The country has made significant progress in improving its legal framework, infrastructure, and incentives for foreign businesses, making it easier to hire, manage, and retain employees.
Native Teams helps you employ and pay your team in Colombia directly through owned entities and infrastructure.
Get in touch with us. We'll be happy to assist you!
