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 allowed in 12 month periods, renewable in writing two times, for a total maximum of 36 months. After the maximum renewal period, if the performance of work continues, 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 annual leave. Annual leave can be used in two vacation periods, and is paid out at termination.
There are two subcategories of workers in Colombia - Ordinario and Integral
Probationary periods are permitted for a maximum of two months, unless the contract is for less than one year. In the case of contracts for less than one year, the maximum probationary period is 1 month. During this trial period, either party may terminate the employment contract without notice. If the employer is ending the employment relationship, they must provide the worker with the reasons why the worker does not have the required skills to perform the job duties.
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.
Overtime pay is 25% of the worker's regular hourly rate. There is a 35% premium for work performed at night (9pm-6am).
There are 13th and 14th month bonuses required for workers in the Salario Ordinario category. The 13th month is paid 50% in June, 50% in December. The 14th month is paid 100% in February
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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