For anyone doing business in Colombia, effectively navigating Colombian employment law is essential to maintaining your good standing with local authorities and guaranteeing the success of your business. Employment Law in Colombia: The graphic above highlights the major cities in Colombia, all entailing the same Colombia labor laws. Employment law in Colombia is overseen by the Works Ministry, and while many aspects will be similar to those found in other markets, there are also notable particularities to navigate. That means you will need to secure the services of a corporate lawyer in Colombia with a strong track record of assisting investors in the market. For anyone planning a short-term market entry, or who only needs a small number of local employees, and therefore seeks to hire via an employer of record in Colombia, one of the key advantages of the service beyond avoiding the need to form a local entity is the fact that compliance with local employment law will be guaranteed as part of your services agreement. An Employer of Record, also known as a EOR, can help your company remain compliant and up-to-date with reforms and regulations within the company. Below, a quick guide to employment law in Colombia is provided, including what constitutes a standard working schedule, some of the most common types of contract, allowances for different types of leave, and statutory contributions for both employers and employees. If you would like to know more about how we can assist you negotiating employment law in Colombia, or any other aspect of doing business in the market, contact us today. You can also download a snapshot of employment law in Colombia at the end of this guide. Standard hours under Colombian employment law According to employment law in Colombia, the maximum a person should work is 48 hours per week. Regular working hours consist of eight hours per day, for a maximum of six days per week. For employees, employers are required to provide the “Día de Familia” and Recreational Days Off. Also, every Sunday is a mandatory rest day in Colombia, so those working six days per week will generally work on a Monday to Saturday schedule, however an employer can negotiate with their employees to elect a different rest day. Note that in Colombia there are 18 national holidays per calendar year, with February and September being the only months of the year in which at least one national holiday is not observed. In general, those holidays fall on a Monday. Employment law in Colombia: common types of contract There are five main types of contract that are used in Colombia, depending on the nature of the business and job someone is being employed for. There are five main types of employment contracts in Colombia, making it important to have a holistic scope of all to comply with Colombia labor laws. Fixed-term employment contracts can last for up to three years and extended for as long as needed. If the original contract lasts less than one year, it can be renewed for the same period of time, however any subsequent renewal must be for at least one year. Under employment law in Colombia, fixed-term contracts include a trial period, which cannot last for more than two months. For contracts of less than one year, the trial period cannot last for more than one fifth of the contract. Indefinite-term employment contracts run for an unspecified amount of time, either because of the nature of the role being undertaken, or because of an agreement between the employer and employee. Such a contract can only be terminated when both parties agree, or under circumstances established in the contract that allow one party to act unilaterally. The trial period for an indefinite-term contract cannot last for more than two months and must be specified in the contract. Contracts for a set task are given for the fulfilment of a specific project. Such a contract must have markers or thresholds written in, or a specified endpoint, to clearly establish when the task will be completed and therefore when the contract ends. The trial period can be agreed upon by the parties but cannot last for more than two months and must be specified in the contract. Occasional, accidental, or transitory contracts are used when the work due to be completed falls outside the scope of the company’s standard activities and is generally provided for work that will be completed in less than one month. The intricacies of these contracts need to be fully understood in order to maintain compliance with employment law in Colombia. Provision of services agreements, commonly referred to as ‘prestaciones’ contracts, can be established between a company and an individual contractor, and must involve the contractor working with a degree of technical and administrative autonomy. A prestaciones contract has a civil character and therefore is not considered a labor contract subject to the same provisions under labor and employment law in Colombia. All risks associated with the role being undertaken are therefore assumed by the contractor. Under such contracts, the employer is not responsible for managing employee deductions, while common benefits such as annual bonuses, paid vacations, and severance pay are also not included. Note that for all contracts that last at least one year, other than prestaciones contracts, the employee is entitled to a ‘13th salary’ bonus, which totals one full month of salary and is distributed in two parts, one being mid-year and the other in December. A PEO firm in Colombia can help you navigate the Colombia labor laws and maintain compliance for various types of employment contracts. Employment Law – Vacations, leave, and other absences under Colombian law After one full year of service with the same employer, employees are entitled to 15 consecutive working days of paid vacation. Under employment law in Colombia, employees must take at least six of those days, but can only carry over any untaken vacation to the following year. Carrying over vacation must be done with the agreement of the company and can be altered at the discretion of both the employee and employer. Maternity and paternity leave Female employees are entitled to a total of 18 weeks of paid maternity leave, with the week before the due date being a mandatory leave period, guaranteed by employment law in Colombia. In the case of a premature birth, maternity leave will last for 18 weeks plus the difference between the due date and the day of birth. For example, in the event a baby is born one week early, maternity leave will last for 19 weeks. For multiple births, maternity leave is extended to 20 weeks. For new fathers, eight days of paid paternity leave are provided, as long as the employee has been contributing to the Social Security System, which will reimburse paternity leave pay to the employer. Bereavement Under employment law in Colombia, employees are entitled to five days of bereavement leave in the event of the death of a parent, in-law, grandparent, sibling, child, spouse, or partner. With regards to kinship through adoption, this provision only applies to an adopted parent or child. The employee’s company assumes all costs related to bereavement leave. Voting leave Under employment law in Colombia, employees are entitled to half a day of personal leave to vote in local and national elections. Upon returning to their place of work, the employee must show their voting card to the employer to demonstrate they voted, and failure to do so will result in the time missed being docked from their salary. Military service leave In the event that an employee is called up for military service, their employment contract is deemed suspended. Under employment law in Colombia, the employee is obliged to allow the employee to resume the same job within 30 days of that service being completed. Note that military service in Colombia can last either one or two years, depending on the type of service chosen by the employee. Trade union leave Colombian labor law dictates that employees are entitled to personal leave in order to serve on a trade union committee. They are also entitled to leave for other trade union purposes, but they must provide adequate notice to the employer, and their absence should not adversely affect the business. Statutory contributions under Colombian employment law Under employment law in Colombia, all employees whose…
