Hiring guide in Colombia

Acquiring a thorough understanding of Colombia’s employment agreements, taxation system, hiring techniques, and laws against discrimination is crucial before starting the hiring process in the country.

It’s also important to note that as an employer, you will be responsible for deducting funds to cover your workers’ taxes and benefits, including social security.

In order to attract and keep high-calibre professionals, ensure that you’re offering appealing benefits packages. Also, following Colombia’s cultural customs and business protocols can significantly enhance commitment and foster favourable rapport among your local workforce.

Why is Colombia a good choice for finding remote employees?

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.

How can Native Teams help you hire in Colombia?

Native Teams provides comprehensive support for legally hiring new staff in Colombia. Our team of professionals will provide guidance, advice, and thorough insights into employment statutes, rules, and potential language and cultural differences. By using our Employer of Record solutions, you can provide legal employment, employee benefits, payments, and more, all without any worries about paperwork and compliance with local laws.

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 Hire your first Colombian employee with Native Teams.

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Legal requirements for hiring in Colombia

Before hiring your first employee in Colombia, it’s essential to get familiar with the following legal requirements:

Core employment practices

Colombian employment laws offer a comprehensive framework that balances employer flexibility with strong protections for employees, ensuring fair treatment and rights across every aspect of the working relationship. 

This includes principles such as freedom of contracting, priority of employment rights, employment contracts, health and safety, discrimination and equal treatment, collective bargaining, and others.

Legal framework

Types of employment contracts

In Colombia, there are five categories of employment contracts, each with distinct characteristics. 

Starting from fixed-term contracts, they can be up to three years and can be renewed. They also typically include a probation period of up to two months.

Indefinite-term contracts don’t have a set end date and can be terminated only by mutual agreement or under specific conditions outlined in the contract. They also include a probation period limited to two months and, as such, offer greater job stability than other contracts. 

Task-based contracts are used for the completion of a specific project with a clearly defined endpoint. The contract should outline the project markers or limits, and if applicable, the probation period should not exceed two months and must be agreed upon by both parties. Occasional, accidental, or transitory contracts are used for working outside the company’s regular activities and usually last less than one month.

Finally, service contracts are used to govern the relationship between a company and an individual contractor. These contracts are subject to civil laws, meaning the contractor assumes all the risks, while the employer is not responsible for managing deductions or providing common benefits like paid leave or severance.

Content of an employment contract

Employment contracts in Colombia must include key elements such as the job description, salary, working hours, and contract duration. It also must outline the employee’s role, base pay plus additional benefits or allowances, and provisions for overtime. If the contract is fixed-term or temporary, it should specify the duration of the employment relationship. The contract must be written in Spanish or in a bilingual format. 

For employees who are working remotely, the remote terms and conditions must be included in the contract. The contract must also include a telework allowance or the reimbursement of telework expenses.

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Download a free employment contract for Colombia through Native Teams.

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Oral, written or electronic employment contracts

The labour law of Colombia recognises written, oral, and electronic employment contracts.

Starting from written employment contracts, they are mandatory for fixed-term, telecommuting, and remote work employment relationships. These contracts must include details about the job role, salary, working hours, and other terms. 

Oral employment contracts are legally valid but not recommended due to challenges in enforcement. They’re also limited to informal and short-term arrangements where detailed records are less critical. 

Electronic employment contracts are also commonly used for remote work arrangements. However, they must include electronic signatures to be legally binding.

Working hours

The standard workweek in Colombia is from 42 to 48 hours, as regulated by the Código Sustantivo del Trabajo (CST). While the current standard maximum is set at 48 hours per week, the Law 2101 of 2021 will gradually reduce it to 42 hours by 2026. 

For an eight-hour workday, employees must receive a minimum rest period of one hour. Overtime work beyond 46 hours per week is subject to additional pay, with a 25% premium for daytime overtime. In cases where work requires successive shifts, the maximum allowable hours can be extended to 56 hours per week, including overtime.

Night work

In Colombia, night work is defined as any work performed between 9:00 pm and 6:00 am. 

Employees who work night shifts are entitled to a reduced workday compared to the standard eight-hour work shift, as well as a premium in addition to their regular salary. The premium should be at least 35% above their standard wage. Employers must also obtain employee consent before assigning night shifts, except in cases of urgent necessity.

Breaks and types of leaves

According to Colombian labour law, employees are entitled to a mandatory meal break of at least 30 minutes for workdays exceeding six continuous hours. For workdays exceeding the standard eight-hour workday, employees are entitled to a rest period of one hour. These breaks are unpaid and separate from working hours.

When it comes to types of leave, Colombian labour laws recognise a few categories – paid bereavement leave of five working days, disability leave, one day of paid electoral duties leave, and one day of paid family leave every six months, for employees who work more than 40 hours per week.

Annual leave

In Colombia, employees who have completed one year of continuous service are entitled to 15 working days of paid annual leave. Employees become eligible for paid annual leave after their first year with the employer. During their leave, employees must receive regular wages.

Public holidays

Colombian labour law mandates 18 national public holidays per year, with specific provisions for working on these days. Some of the national public holidays in Colombia are New Year’s Day, Epiphany, St. Joseph’s Day, Good Friday, Labour Day, Independence Day, and Christmas Day.

Salary

In Colombia, salary structures are classified into integral and ordinary types. 

An integral salary is a fixed monthly amount that includes all the statutory benefits and contributions. In 2024, the minimum integral salary is COP 16,900,000 per month, reflecting a 30% increase over the basic minimum wage to account for all statutory benefits. 

On the other hand, an ordinary salary is a compensation model where statutory benefits and bonuses are paid separately from the regular monthly salary. While the base salary, according to this model, is lower, additional payments for benefits are provided. The basic minimum wage in 2024 is COP 1,300,000 per month, and employees on an ordinary salary receive additional mandatory payments throughout the year.

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To calculate the salary and taxes in Colombia, click here.

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Sick leave

In Colombia, sick leave provisions ensure that employees are entitled to paid sick leave with a valid medical certificate.

The amount of paid sick leave depends on the length of service – employees with less than a year of service receive half a salary for the first two days of illness, employees with 90 to 180 days of service get two-thirds of their salary after the first two days of illness, and employees with more than 180 days of service get two-thirds of salary for up to 180 days. 

Other than paid leaves, Colombian employees are also entitled to unpaid leaves, which are subject to the approval of their employer.

Parental leave

Parental leave in Colombia provides paid time off for new parents, with support from the Social Security system. It is a mandatory benefit which allows new parents to take paid time off.

Parental leave typically includes maternity leave, paternity leave, breastfeeding leave, and adoption leave, with financial support provided by the Social Security system (EPS).

Maternity and paternity leave

Colombian parental leave policies provide paid time off for new parents, including maternity, paternity, breastfeeding, and adoption leave.

Mothers receive 18 weeks of paid maternity leave, which can be taken as one week before and 17 weeks after childbirth or two weeks before and 16 weeks after. To be eligible, the mother must be formally employed and have at least the minimum required contributions to Social Security before the expected delivery date.

Fathers are entitled to eight working days of paid paternity leave, starting immediately after the birth of their child. To qualify, the father must be formally employed and affiliated with the Social Security system and married or in a recognised domestic partnership with the child’s mother. 

For adoption leave, female employees are entitled to 18 weeks of leave, while male employees receive eight working days, both paid at full salary.

Methods of employment termination

In Colombia, termination of employment contracts can occur for various reasons, including redundancy, misconduct, poor performance, contract expiration, or employee-initiated resignation. 

According to Article 61 of the Labour Code, the employment relationship can be automatically terminated for reasons such as the death of the employee or the end of a fixed-term contract.

The employer can end the contract with a fair cause if the employee breaks the contractual and legal standards, which must be in written form for evidential purposes. Employment contracts can also be ended by the employer without a cause, but they must pay employee compensation in the form of damages or severance. 

Employees can also terminate their employment by providing a written resignation letter, typically with a notice period specific to their contract. Failing to comply with the notice period may result in losing certain benefits. Upon termination, employees are entitled to receive any accrued benefits, such as unused vacation days and 13th and 14th month salaries.

Ordinary dismissal by employer

Ordinary dismissal by the employer in Colombia can occur due to redundancy or poor performance, meaning it’s a termination with just cause.

To ensure that the dismissal is lawful and with just cause, the process must uphold the employee’s process rights, including informing them, presenting evidence, allowing them to contest the claims, and granting rights to defence.

Notice period and challenging the dismissal

In Colombia, there is generally a mandatory notice period for ordinary dismissals, and employees have the right to challenge dismissals through a legal process if they believe the termination was unjust.

For fixed-term contracts, employers must provide written notice at least 30 days before the date of the contract expires if they don’t intend to renew it. For certain serious breaches of discipline, employers must give at least 15 days written notice before termination. 

If the employment contract is ended by a resignation by the employee, they may do it no less than 30 days in advance. On the other hand, if the employer terminates the contract without fair cause, the employee is entitled to compensation, depending on the type of employment contract.

If the employee believes the dismissal was not legally justified, they can file a claim with labour courts and get compensation from the employer if the court finds the dismissal wrongful.

Rights and obligations of unemployed individuals

Unemployment benefits in Colombia depend on past contributions and require active job-seeking and proof of search efforts. Such benefits are typically capped, and their amount is intended to provide temporary financial support while the individual seeks new employment.

To be eligible for unemployment benefits, besides prior contributions to the Social Security system, the individual must actively seek employment, including attending interviews, submitting job applications, and participating in job training programmes. 

Individuals must provide evidence of their job search activities, such as job application records, correspondence with potential employers, and proof of attendance at job fairs or employment workshops. Failure to show adequate job-seeking efforts can lead to suspension or termination of benefits.

Probationary period

Probationary periods in Colombia are considered a trial phase to assess the suitability of the employee for the position and the compatibility between the employee and the employer. 

When it comes to indefinite-term contracts, the probationary period can last up to two months, while in the case of fixed-term contracts, it can last for one month. During the probationary period, both parties can terminate the contract with minimal notice.

Severance pay

In Colombia, severance pay is a statutory requirement for terminated employees and can vary depending on the type of contract, earnings, and the reason for termination.

When the employment relationship is terminated by a fair cause, the employee is not entitled to severance pay. However, in the case of unfair dismissal, the employee receives severance pay based on the type of contract they had. 

In fixed-term contracts, the severance is calculated with the salary days pending until the end of the contract. In contracts for a specific project or service, severance is calculated with the salary days pending until the end of the contract, with a minimum of 15 days. With infinite-term contracts, the severance is calculated based on the amount of salary and time of service.

Prohibition of competition

According to Colombian labour law, non-compete clauses may be permitted but are strictly limited to the duration of the employment contract. Article 44 of the Labour Code permits employers to impose restrictions on employees from engaging in certain activities or working for competitors only during the term of their employment.

However, non-compete clauses are invalid and cannot be enforced after the termination. This limitation is based on the protection of employees’ rights to pursue new employment opportunities.

Remote working policy

Before the pandemic, the model of “teleworking” or remote work was already established and regulated in Colombian labour law. This law allowed employees to agree to remote working, either full-time or through hybrid arrangements. 

Due to the pandemic, the government permitted companies to implement the “home office” model as an emergency measure, allowing employees to work from home. Currently, “home office” is regulated by Law 2088 of 2021, which specifies that it only applies in exceptional, special and temporary circumstances. 

However, employers who want to introduce remote work permanently must mutually agree with each employee on the implementation, as well as sign a contract amendment where both parties explicitly outline the working conditions, including schedules, cybersecurity protocols, and the necessary work tools.

Intellectual property rights

Colombia’s intellectual property laws ensure creators keep their moral rights while employers obtain economic benefits regulated by national and Andean Community standards.

Intellectual property is divided into two categories – industrial property and copyrights. Industrial property includes exclusive rights to trademarks, patents, and industrial designs, granted upon registration. Copyrights cover moral rights related to authorship and integrity, as well as economic rights, which are financial benefits from original works like software, literature, and art. 

According to Colombian labour laws, intellectual property and economic rights created during a labour or service agreement typically transfer to the employer, but moral rights remain with the creator.

Employee data privacy

Employers in Colombia are responsible for implementing appropriate technical and organisational measures to safeguard employee data and company information. Specific Colombian laws outline rules for managing personal data, emphasising the fundamental right to privacy and correct personal information in databases. 

Employers must carefully handle personal employee data. Sensitive data, such as names, marital status, education, identification numbers, affiliation with organisations, and details related to racial or ethnic origin, political or religious beliefs, health, sexual orientation, fingerprints, and biometric data, must be managed with express consent from the employee.

Responsibilities within a remote work arrangement 

When implementing remote work on a permanent basis, there must be mutual consent between both parties. In such arrangements, employers must ensure that the remote workstation meets ergonomic and comfort standards and establish clear communication channels for reporting work issues.

Employees must comply with the general work obligations and teleworking-specific duties, such as reporting accidents or illnesses, adhering to cybersecurity policies, and participating in employer-organised workshops. They must also manage their work schedule as if they were on-site.

Health and safety at home

Colombian health and safety laws require employers to ensure a safe working environment, including remote workers. Hence, employers are obligated to include teleworkers in their internal health and safety policies and procedures, ensuring that their home or remote workstation meets the standards, particularly concerning ergonomics and comfort. Employers must also create clear communication channels and provide training on health and safety practices and the proper use of remote work tools. 

Employees, on the other hand, should maintain a suitable and safe workplace, ensuring their home offices meet ergonomic standards and are free from hazards. They must also adhere to safety guidelines, use the provided equipment properly, and report any safety issues.

What are the advantages of hiring employees from Colombia vs other countries?

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.