Colombia
Expanding into Colombia? Our Employer of Record (EOR) services simplify hiring by managing payroll, benefits, and compliance with local labor laws—so you can focus on growing your business with confidence.
Colombia, known for its vibrant culture, stunning landscapes, and growing economy, is an attractive destination for businesses looking to expand internationally. TCWGlobal serves as your trusted partner in navigating the complexities of hiring in Colombia, offering comprehensive solutions for building your contingent workforce.
Fixed-term contracts are permitted, but 30 days’ notice is required to terminate them early and in the event of such an early termination, severance is due equal to the salary owed to the Worker through the expiration of the fixed term. Fixed term contracts can be for an initial period of up to one year. Fixed term agreements can be extended no more than three times, up to a maximum of three years, after which the contract will be deemed indefinite.
There are 18 paid public holidays in Colombia. These holidays include New Years Day, Epiphany, Saint Joseph's Day, Maundy Thursday, Good Friday, Labour Day, Ascension Day, Corpus Christi, Independence Day, Battle of Boyaca, Columbus Day, All Saints' Day, Immaculate Conception, Christmas Day, Palm Sunday, Easter Sunday and the Independence of Caragena City.
Workers are entitled to 15 days of paid vacation annually which can be split into two periods provided the Worker enjoys at least six uninterrupted days of rest. Accrued but unused leave carries over year to year and is payable at the end of an engagement.
The following Workers are excluded from the regular rules concerning working hours and overtime: Workers that perform functions of direction, trust, or management; who are engaged in intermittent activities; and who perform activities of simple vigilance like security guards at a single worksite. In addition, Workers’ salaries may be under either the ordinary salary scheme or the integrated salary scheme, which entitle them to different benefits.
Indefinite contracts may include a probationary period up to two months. Fixed term agreements of one year can have a probation period up to 2 months. If the term is less than a year, the duration of the probation period cannot exceed one-fifth of the agreed-upon term up, provided it does not exceed two months. If a Worker is terminated during a probationary period, no severance is due, but the Worker must be provided with a reason.
A standard workweek is 7.6 hours per day, or 46 hours per week. The standard workweek is gradually reducing to 42 hours per week by 2026.
Workers may not be required to work more than two hours per day in overtime or 12 hours per week. Overtime during the day (6:00 a.m. to 7:00 p.m.) is paid at 125%. Overtime at night (7:00 p.m. to 6:00 a.m.) is paid at 175%.
Most Workers are paid bonuses in June and December, each the equivalent of 15 days’ salary. There is an additional bonus paid in February, equivalent to one month of the workers’ regular rate of pay.
Workers may be terminated with 15 days' notice for poor performance. For reasons other than poor performance, or without justification, workers must be provided 30 days notice. Terminations without justification will be subject to severance payments based on the worker's length of service, generally 30 days of pay for the first year of service and 20 additional days for each subsequent year of service.
There are no statutory requirements for Worker resignation.
Mass terminations require prior authorization from the Ministry of Labour. Mass terminations occur when a specific percentage of workers are terminated within a 6 month period, based on the number of workers the company has.
Digital workers are regulated by Law 2121 of 2021 which guarantees these workers access to social security and proportional payment for the performance of their work related tasks.
Companies are required to provide pension contributions, health insurance, worker's compensation insurance and contribute to a the Family Welfare Fund and National Learning Service. The company contribution is typically 9% of the worker's salary, with the exception of the pension contribution
Companies are required to contribute to the pension system, generally at the rate of 12% of the worker's salary.
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