Employment and labor laws vary from country to country. This guide is intended to provide the most up to date information available. We will update this guide as needed when changes are made to the laws.
Employment Contracts
Employers are legally required to provide formal written contracts for all employees that include salary/wage, termination terms, job title, etc. The contracts must be written in Spanish and use the Colombian Peso currency (COP).
Working Hours
General
By law in Colombia, the maximum number of working hours is 8-10 hours per day and 47 hours per week (effective July 2023)
Worker’s non-working time must be respected and employers should not contact them after working hours.
With effect from summer 2023, the work week will gradually be reduced. Colombians will work one less hour per week each year, which will not negatively affect their salary, benefits, or the value of the daily working hour. The initial objective of the measure is to reduce the workday to 42 working hours per week by the year 2026. It will start with one less hour in the first two years (2023 and 2024) and two less hours in the following years (2025 and 2026).
Overtime
All work above the standard weekly working hours is paid as overtime and regulated by the employment contract/collective agreements.
An employee who has to work between 22:00 and 06:00, must be paid 35.00% more than the equivalent daytime salary.
Exemptions for the receipt of overtime include employees who earn more than 10x the minimum wage or employees in trust positions.
For the remaining employees, the payment of overtime is generally based on the following:
- Daytime Overtime is paid at 125.00% of the regular pay rate, increasing to 175.00% of the standard pay rate for night-time overtime hours.
- Sunday/Extra Daytime/Holiday overtime work is paid at 175.00% of the regular pay for holidays and night-time work and 125.00% for overtime work during the daytime.
Public Holidays
In Colombia, there are a number of public holidays established by law. If they do not fall on a Monday, they are moved to the following Monday.
For the year 2024:
- Jan 1: New Year’s Day (Sunday)
- Jan 8: Three Kings Day (Monday)
- Mar 25: St. Joseph’s Day (Monday)
- Mar 28: Holy Thursday (Thursday)
- Mar 29: Good Friday (Friday)
- May 1: Labor Day (Wednesday)
- May 13: Ascension Day (Monday)
- Jun 3: Corpus Christi (Monday)
- Jun 10: Sacred Heart (Monday)
- Jul 1: Feast of St. Peter & St. Paul (Monday)
- Jul 20: Independence Day (Saturday)
- Aug 7: Battle of Boyaca (Wednesday)
- Aug 19: Assumption Day (Monday)
- Oct 14: Columbus Day Celebration (Monday)
- Nov 4: All Saints’ Day (Monday)
- Nov 11: Independence of Cartagena (Monday)
- Dec 8: Immaculate Conception (Sunday)
- Dec 25: Christmas (Wednesday)
Annual Leave (vacation)
Paid leave in Colombia is outlined in the employment contract as a minimum of 15 days paid leave a year, following completion of 1-year service. This is in addition to any public holidays.
Sick Leave
All employees are entitled to paid sick leave by their employer for the first two days of leave, at a rate of 100% of their regular pay rate.
Medical authorization from a Colombian social security entity must be obtained for the employee to be paid for their sick leave.
From the third day onwards, all payments are assumed by the social security system at a rate of 66.67%. Still, the law requires that the employer pays from day three until day 180, with reimbursement from the social security system. These same rules also apply to disability leave.
Maternity and Paternity
Maternity Leave
Employees are entitled to 18 weeks paid maternity leave of 100.00% of the regular salary rate of pay. The employer pays this and is then fully reimbursed by the social security.
Paternity Leave
Employees are entitled to 8 days of paid paternity leave of 100.00% of the regular salary rate of pay. The employer pays this and is then fully reimbursed by the social security (EPS).
Paternal Leave
There is no additional parental leave in Colombia.
Other Leave
In the event of the death of an immediate family member, an employee is entitled to up to five days leave in Colombia.
Employees are also entitled to five days leave in the event of their marriage.
Employee Severance and Terminations
Termination Process
The termination process is standard in Colombia and is based on Labor Law requirements unless an employer can provide sufficient cause for dismissal without notice (due to misconduct, etc.)
Notice of termination must be in writing and sent to the relevant governmental authorities.
The employer must make payment to leavers on their last day at work.
Notice Period
According to Colombia Labor law, if the employee is paid weekly or at shorter interims, eight days’ notice is required. If the employee is paid less often than weekly or has been with the employer for longer than one year, a minimum of 30 days notice is required, with three additional days added for each additional year of service at the company up to a maximum of 90-day prior notice.
Severance Pay
In Colombia, severance pay is mandatory if applicable and determined by the employee’s length of service and the rate of earnings.
If the employee earns less than 10x the minimum monthly wage, the severance payment entitlement is 30 days for the first year of employment, plus 20 days for each additional year of service.
If the employee earns more than 10x the minimum monthly wage, the severance payment entitlement is 20 days for the first year of employment, plus 15 days for each additional year of service.
Probation Period
The probation period in Colombia is optional. It is recommended to set a probation period of 1/5 of the contract duration up to 2 months. For permanent employees, it is generally two months.
Payroll Cycle
The payroll cycle in Colombia is either bi-monthly, paid on the 15th and last day of each month, or monthly.
13th Salary
Paying a 13th-month salary is mandatory in Colombia. The employer must pay the first half within the first 15 days of June and the other half within the first 20 days of December. These will be prorated when a full year has not been worked.
Contributions
Employer Payroll Contributions
*Tax Units (1 Tax Unit= 47,065 COP)
* Not included in total, as only applicable to specific employee related earnings
VISA
Any foreigners coming to work in Colombia will need to have a job offer from a local employer before applying for a visa. There are several visa types, but the most commonly used is the M visa which is valid for five years. These visas are issued in person at the Ministerio de Relaciones Exteriores’ offices in Bogota.
Every foreigner with a visa valid for more than three months needs to apply and obtain a foreigner’s identity card at a regional office. This must be obtained within 15 days of entering Colombia or 15 days after the visa was issued.
Once five years have been completed, foreign nationals can apply for an R visa; then, once an individual has held an R visa for five more years, they can become a Colombian citizen.
Remote Work
Work From Home
Employers are required to respond within 5 days to employees’ written working from home requests. Employees may carry out their work overseas if permission is given by their employer. Teleworkers’ employment agreements must include a description and any restrictions and responsibilities regarding equipment and software, the mode of teleworking, the required working hours, the location of teleworking, reimbursement of expenses, ergonomics and technology, among others.
It is possible for the employer and the teleworkers to expressly agree in the employment contracts or amendments on the reversibility of teleworking at any moment.
Employers are required to reimburse employees for teleworking-related expenses which are not normally incurred by employees. Employers and employees may agree a monthly allowance to compensate internet, telephone, and energy costs.
Employers should perform medical examinations for their remote employees when they are hired and on a periodic basis. Remote workers who are caring for minors under age 14, individuals with disabilities or adults over age 60 are allowed to organize their work schedule around their caregiver duty.
All workers have the right to disconnect and avoid any work-related contact outside their working hours and statutory or contractual leaves.
Remote Work
Remote work can be agreed upon voluntarily by the employer and employee, whereby an employee may conduct their services from any place within the country. The entire labor relationship, from its beginning to its termination, may be conducted without any face-to-face meetings at a designated workplace.
All workers have the right to disconnect and avoid any work-related contact outside their working hours and statutory or contractual leaves.
VAT
General
The standard rate of VAT in Colombia is 19.00%.