Hiring in Colombia

Indefinite employment agreements may impose a probationary period of up to two months on employees.

For employees under a fixed-term employment agreement, a probationary period of up to one-fifth of the agreed fixed term is permissible, capped at two months. In the case of successive fixed-term contracts, trial periods can only be stipulated in the initial contract and are not allowed in subsequent contracts.

The employer and employee have the flexibility to mutually determine working hours, as long as they adhere to the legal weekly hour limits. Ordinary working hours are capped at eight per day and 47 per week, with a compulsory rest day, usually on Sunday. Alternatively, parties may agree to distribute daily working hours between four and 10 hours, ensuring compliance with the weekly maximum.

The daily working hours should be divided into at least two segments, separated by a mandatory rest period, which is not counted as part of the daily working time.

An employee should not be compelled to work beyond two hours of overtime in a single day. Weekly overtime should not exceed 12 hours. Daytime overtime (6 a.m. to 9 p.m.) attracts an additional 25% on the regular hourly rate, while nighttime overtime (9 p.m. to 6 a.m.) incurs a 75% increase.

For work carried out on Sundays or public holidays, employees receive an extra 75% on top of their standard rates.

It’s important to note that individuals in roles involving direction, trust, or management are exempt from the stipulations on maximum daily work and overtime.

The employer must ensure a secure workplace by integrating suitable elements and tools to prevent work-related accidents and occupational diseases. Every employer or contracting party must establish the “Safety and Health at Work Management System” to ensure compliance with all workplace health and safety regulations.

A pre-employment health check is obligatory, and annual health checks are a requirement.

Every employer is obligated to provide a bonus, referred to as a “prima.” The total amount of this payment equals one month’s salary and is distributed in two installments, typically in June and December.

Only employees under the Ordinary Salary category are eligible for this bonus payment.

In Colombia, termination of an employment contract can occur at any time with immediate effect by either party. Grounds for termination fall into three categories:

• Legal Grounds: These are termination reasons unrelated to the employee’s behavior but are mandated by the law, such as the death of the employee, expiration of a fixed-term contract, or specific conditions outlined in employment contracts. In such cases, where termination results from legal operation, the employee is not entitled to severance payment.
• Termination with Fair Cause: This pertains to situations involving gross misconduct by the employee, clearly defined by law. While parties cannot add supplementary grounds for termination, they can define serious misconduct through the employment contract or company manual. Prior diligence with the worker is recommended before notifying a decision. In these cases, the employee is not entitled to severance payment.
• Termination without Fair Cause: This category encompasses all situations not considered legal or fair causes. In these cases, the employee is entitled to severance payment as per the law. Termination without fair cause may be subject to limitations, and if deemed unfair, the termination could be voided. The consequence may involve reinstating the employee rather than recognizing severance payment.

Restricted or prohibited terminations

In certain instances, employers may not terminate an employment agreement without obtaining authorization from the Ministry of Labor or a Labor Judge, even when there is just cause.

Workers in specific situations enjoy protection against termination without authorization: 

• Employees who are pregnant or on maternity leave, including a father or partner employed when the mother is unemployed and recognized as her beneficiary with the social security authorities, are shielded from termination without the requisite authorization.
• Employees on sick leave or facing restrictions that significantly impede their ability to fulfill their duties are safeguarded from termination without authorization.
• Employees within three years of retirement are protected from termination without obtaining the necessary authorization.

Collective Dismissals

For an employer to initiate a collective dismissal, it must first secure authorization from the Ministry of Labor.

There is no specific notification procedure mandated for dismissals with or without justified cause. However, the grounds for dismissal must be communicated to the employee by the termination date, as outlined in Articles 62, 64, and 66 of the Labor Code. Nonetheless, in specific instances of dismissal tied to an employee’s misconduct or poor performance, a prior 15-day notice is required.

Unilateral termination without cause is legally permissible, albeit triggering severance obligations.

• In the case of unilateral and unexplained termination, the employee is entitled to receive indemnification in addition to their final wages.
• For employees with an indefinite term agreement, the calculation of such indemnification will be as follows:
• For employees earning less than 10 times the minimum legal monthly wages, the compensation amounts to 30 days of salary for the initial year of service and 20 days of salary for each subsequent year, calculated proportionally for fractions of a year.
• For employees earning 10 times the minimum legal wages or more, the compensation stands at 20 days of salary for the first year of service and 15 days of salary for each additional year, calculated proportionally for fractions of a year.
• For employees under a fixed-term contract, the severance will be equivalent to the salary owed to the employee until the expiration of the contract term.
• For employees engaged in agreements tied to the duration of a project, the severance will be the anticipated salary owed to the employee until the project’s completion. Nevertheless, the severance amount cannot be less than 15 days of salary in any circumstance.

Post-termination non-competes, customer non-solicits, and employee non-solicits are not legally enforceable in Colombia. Nonetheless, these provisions are often included in employment agreements as a preventive measure or to create a moral obligation for the employee.

The right for employers and employees to form associations such as trade unions and employers’ associations is constitutionally guaranteed in Colombia. Trade unions are more common in specific sectors, notably in industrial and public domains. A minimum of 25 workers is needed to create and sustain a trade union in Colombia. In practical terms, when a company has a workforce of at least 25 employees, they can establish a union at the company level, and only the employees have the authority to form such a union.

Colombia does not have work councils or other forms of employee representation.

Payslips should be distributed through a secure email or an Employee Self-Service (ESS) platform. The content must be in Spanish.

Employees are entitled to a minimum of 15 days of holiday each year, accruing at a rate of 1.25 days per month from the start of their employment. It is mandatory for employees to utilize at least six days of annual leave annually.

Carry over rules

Upon mutual agreement, holiday days can be accrued for up to two years. The employer and the employee may negotiate a monetary compensation formula for the vacation period, provided that it does not exceed 50% of the total accrued holiday.

If an employee experiences sickness or an accident resulting in work incapacity, it is imperative to obtain certification from a licensed practitioner or the relevant authority, typically chosen by the employee. The certificate clearly specifies the necessary recovery period for the employee to return to work. The employer compensates for sick leave during the absence, which may extend indefinitely. However, starting from the third day of sick leave, the employer can seek reimbursement through Colombia’s social security system.

For illnesses or accidents unrelated to work, the employee is entitled to receive 66.67% of their regular salary.

In the case of work-related accidents or illnesses, the social security system assumes the remuneration responsibility, providing 100% of the employee’s salary throughout the entire incapacity period.

Employees have the privilege of taking paid leave under the following circumstances:

Marriage Leave: Employees are entitled to five days of paid leave for marriage.

Trade Union Leave: Employees can avail paid leave when serving on a trade union committee. Leave is also granted for other trade union purposes with adequate notice, ensuring no adverse impact on business.

Voting Leave: In Colombia, employees have the right to half a day of paid leave to participate in public elections.

Personal Leave: Employees can take up to five days of paid leave to attend to significant personal matters.

In addition, employees can take unpaid leave for the following reasons:

Military Service: If called to military service, the employment contract is suspended, and the employer must reinstate the employee to the same position within 30 days of service completion.

Personal Reasons: The employment contract can be suspended for specific reasons defined by law. Mutual consent for contract suspension is a common practice, allowing employers to grant non-paid leave for personal reasons.

Bereavement Leave: Employees are eligible for five days of paid leave upon the death of a spouse, permanent partner, parent, child, sibling, grandparent, grandchild, mother or father-in-law, son or daughter-in-law, stepchild, or stepparent.

Funeral Leave: Employers are obligated to allow an employee the necessary leave to assist with the burial of a co-worker.

Compassionate Leave: Colombian labor law mandates employers to grant paid compassionate leave, but it does not specify the duration or scope. Employers are advised to assess compassionate leave on an individual basis.

Maternity Leave

Every employed pregnant or adoptive mother in Colombia is entitled to 18 weeks of paid maternity leave. A mandatory minimum of one week of leave before delivery is required, extendable to two weeks when medically necessary. Adoptive mothers, and fathers responsible for the newborn in case of the mother’s illness or death, are also eligible for this maternity leave. In the case of multiple births, an additional two weeks are granted.

The healthcare system entirely covers the payment for maternity leave. Upon returning to work, the mother can take two 30-minute breaks per day for nursing or as rest breaks, with no reduction in pay until the child reaches six months old. This duration can be extended with a doctor’s note. A designated space adjacent to the workplace must be provided for this activity.

Paternity leave

A father is granted eight working days of paid paternity leave upon the birth of his spouse’s or significant other’s child or when adopting a child.

Adoption rights

The rights granted under paternity and maternity leave are equally applicable in cases of adoption. If the father is the sole adopting parent, he will be entitled to the same rights as a mother.

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