Employer of Record (EOR) in Colombia
Expand your business in Colombia effortlessly with our Employer of Record (EOR) services. We take care of local compliance, payroll, and benefits, enabling you to hire skilled professionals without the need for a legal entity. Native Teams is here to help you manage the administrative complexities so you can focus on growing your business or team!
How does an EOR in Colombia work?
An Employer of Record (EOR) in Colombia acts as the legal employer for your workforce, enabling businesses to hire employees in the country without setting up a local entity. The EOR manages all employment-related responsibilities, including drafting employment contracts, handling payroll, managing tax contributions, and ensuring compliance with Colombian labour laws.
For freelancers and contractors, an EOR in Colombia simplifies the process of obtaining legal employment status and accessing traditional benefits such as health insurance, pensions, and paid leave. The EOR manages tax compliance, contracts, and contributions to social security, ensuring adherence to Colombian regulations.
Who can use EOR services in Colombia?
Employer of Record (EOR) services in Colombia are tailored to assist businesses and individuals in expanding their workforce or operations while ensuring full compliance with Colombia’s labour laws and regulations.
Businesses
Companies of all sizes looking to expand their operations in Colombia can use EOR services to hire employees without establishing a local entity. This is ideal for startups, SMEs, and large corporations aiming to streamline compliance, payroll, and administrative tasks.
Individuals
Freelancers, contractors, and remote workers can benefit from EOR services in Colombia by obtaining legal employment status, ensuring tax compliance, and accessing traditional benefits like health insurance and social security contributions. It’s a practical solution for individuals working with local or international clients.
Features of Native Teams EOR Services in Colombia
Employment status
Native Teams ensures employees in Colombia have legal employment status, offering businesses and individuals access to official benefits and compliance with local labour laws.
HR administration and documentation
We take care of all HR tasks, including contracts and employee records, ensuring smooth operations for businesses and offering contractors peace of mind with legal documentation.
Global payroll
Native Teams offers a global payroll solution, ensuring that employees and individuals in Colombia are paid accurately and on time, in compliance with local tax regulations and payroll requirements.
Benefits
We manage statutory benefits like health insurance and retirement plans, ensuring businesses can provide their employees with full benefits while freelancers and contractors receive the necessary protections.
Explore Colombia's labour laws and regulations in detail with our hiring guide.
What legal requirements exist for employment in Colombia
Employment contracts
Employers in Columbia must provide written employment contracts outlining terms and conditions, including job role, compensation, and working hours, to ensure clarity and legal compliance.
Social security contributions
As mandated by Colombian law, employers must contribute to the Social Security Fund for employees, covering health insurance, accident insurance, retirement plans, and long-term savings.
Payroll taxes
Payroll taxes, including income tax and social security contributions, must be withheld from employees' salaries by the employer and remitted to the relevant authorities.
Minimum wage
Colombia sets a minimum wage, which employers must comply with, ensuring that employees receive fair compensation in line with government regulations.
Employment registration
All employees must be registered with the government as part of the employment process, ensuring they are recognised under the legal framework of Colombia’s labour laws.
Work permits
Foreign nationals must obtain work permits to be legally employed in Colombia, with specific requirements based on their job and nationality.
Record keeping
Employers must maintain accurate and up-to-date records of employees, including contracts, payroll details, working hours and taxes, for compliance with Colombian labour laws and regulations.
Please note that employment laws in Colombia vary by job category and individual circumstances and are subject to change.
Why choose Native Teams as your Colombia Employer of Record?
Native Teams simplifies the process of hiring and managing employees in Colombia. Our EOR services enable you to manage everything with ease, all through one convenient platform.
By partnering with Native Teams, you gain access to expert guidance, benefits management, and cost-effective solutions, allowing you to concentrate on scaling your business while we handle all legal and administrative aspects of employment in Colombia.
``What is an Employer of Record?
An Employer of Record (EOR) is a service that allows companies to hire employees in Colombia without setting up a local entity. The EOR assumes responsibility for all employment-related tasks, including compliance with Colombian labour laws, payroll management, tax withholding, benefits administration, and more. This service also helps freelancers, contractors, and remote workers in Colombia gain legal employment status and access to the benefits typically associated with traditional employment.
What are the costs of using an Employer of Record in Colombia?
The cost of using an Employer of Record (EOR) in Colombia varies depending on the provider, team size, and the services required. Generally, using an EOR is more cost-effective than establishing a local entity, making it an attractive option for businesses expanding into Colombia.
Native Teams offers straightforward, transparent pricing, starting at €79 per month per employee for businesses and €49 per month for individuals on the Remoter plan. Both plans ensure full compliance with Colombian labour laws, offering businesses and individuals all the tools they need to manage employment smoothly.
What is the difference between PEO and EOR?
The main difference between a Professional Employer Organisation (PEO) and an Employer of Record (EOR) lies in the level of control over the employee. A PEO operates under a co-employment model, where the business retains control over the employee while the PEO manages HR functions such as payroll and benefits.
An EOR takes on full legal responsibility for the employee, acting as the official employer. This includes handling all aspects of employment, such as compliance with labour laws, taxes, and legal liabilities.
What are the responsibilities of an Employer of Record (EOR)?
An Employer of Record (EOR) manages all employment legal and administrative aspects. This includes drafting employment contracts, processing payroll, handling tax deductions, managing social security contributions, administering employee benefits, and overseeing offboarding.
Additionally, the EOR ensures that all practices comply with Colombian labour laws, including working hours, employee protections, and minimum wage regulations. Native Teams also handle HR administration and employee documentation, ensuring complete legal compliance throughout the employment lifecycle in Colombia.
Is using an Employer of Record in Colombia legal?
Yes, using an Employer of Record (EOR) in Columbia is fully legal. Native Teams ensures full compliance with all relevant Colombian employment laws, enabling businesses and freelancers to meet local legal and regulatory requirements. By partnering with an EOR, companies can operate smoothly without the complexities of setting up a local entity, while employees benefit from proper contracts, compensation, and benefits.
Why should I use an EOR instead of opening my own company or office in Colombia?
Using an EOR like Native Teams is a quicker, more cost-effective solution for hiring and managing employees in Colombia than establishing a local business or office. Starting a local entity requires considerable time, effort, and financial investment, including registration, tax setup, and office space, making the EOR option a more efficient alternative.
How many people can I employ in Colombia?
There are no specific limitations on the number of employees you can hire in Colombia. With Native Teams' EOR services, you can hire as many people as needed for your business. Our platform allows you to scale your workforce effortlessly while ensuring compliance with Colombian labour laws, whether you're hiring one employee or building an entire team. We handle all legal and administrative aspects of employment in Colombia.