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Employment contracts and policies in Colombia
Contract terms in Colombia
Contract extension in Colombia
Fixed-term contracts in Colombia
Working hours in Colombia
Remote work in Colombia
Tailored employment contracts in 100+ countries
Employment contracts in Colombia
To successfully engage with workers in Colombia, you need to create and provide employment contracts that adhere with local labour laws and regulations. This helps to protect your business from potential legal and financial problems down the line. When contracts are compliant, they reduce the risk of misunderstandings or disputes, which can lead to costly legal issues.
A well-drafted employment contract serves as a clear agreement between the employee and the employer. It should include important details about the terms of employment. For example, it should outline the employee’s duties, how much they will be paid, and their work schedule. This clarity is essential because it helps both parties understand their responsibilities and expectations right from the start.
When everyone knows what to expect, it reduces the chances of conflicts arising. If there are clear guidelines on what is expected in terms of work performance and pay, employees are more likely to feel secure in their positions. This can lead to higher job satisfaction and better performance overall.
Colombia’s employment contract labour law
The Colombian Labour Code governs the employment contract in Colombia. It has been amended by several laws, including Law No. 50 of 1990 and Law No. 789 of 2002, which provide the statutory provisions for employment practices within the country. Aside from employment contracts, the Labour Code also covers workers’ rights and employers’ duties to protect both parties in an employment relationship.
As an employer, you have the flexibility when drafting an employment contract. It can be in verbal or written form. However, it is common in Colombia to provide a written employment contract that includes key information on job details, salary, working hours, and the contract’s length.
Different types of employment contracts in Colombia
- Indefinite-term contract
This is the most common type of employment contract where it doesn’t specify an end date. The contract continues until either party decides to terminate it under conditions specified by the law. It’s recommended that these agreements be made in writing, though it’s not a legal requirement. - Fixed-term contract
This type of contract is used for employment that has a specified duration that should not exceed three years but can be renewed indefinitely. A fixed-term contract is particularly useful for project-based work where the duration is clearly defined by the scope of the project. - Contract for specific work or task
This type of contract is focused on achieving a specific task or project. The contract is terminated once the task or project is completed. It’s commonly used for project-based jobs.
Employment contracts and policies in Colombia
If you are looking to hire talent in Colombia, you need to keep in mind that written employment agreements are mandatory for fixed-term contracts, telecommuting, and remote work.
Nonetheless, whatever the types of employment contracts you choose to provide, it’s advisable to have written agreements to provide structure and clarity to the employment relationship, as well as legal protection for your business.
Probationary period in Colombia
Many employment contracts in Colombia include a probationary period clause. For workers under an indefinite contract, they may be subject to a probationary period generally not exceeding two months, during which either party can terminate the contract without liability.
For workers under fixed-term contracts, on the other hand, their probationary period cannot exceed one-fifth of the total contract duration and should not surpass two months.
Employment contract policies in Colombia
The following policies are mandatory based on the number of employees:
- Internal regulations (Reglamento Interno de Trabajo or RIT)
In compliance with Article 105 of the Colombian Labour Code, commercial businesses with over five permanent staff, industrial entities with more than 10 employees, or companies in agricultural forestry or cattle with more than 20 employees are required to implement internal regulations. - Health and safety regulations (Reglamento de Seguridad y Salud en el Trabajo)
Businesses with over 10 permanent employees are required to implement health and safety regulations under Article 349 of the Colombian Labour Code. - Biosafety protocol
Under the Colombian Ministry of Health’s Resolution 692 of 2022, it requires all employers to adopt measures to mitigate and control COVID-19 in the workplace. - Data privacy and disconnection labour policies
Implementing data privacy policies for your organisation is mandatory regardless of your workforce size. The policies should include clauses that respect the privacy and well-being of your employees to ensure their personal information is protected and that they have the right to disconnect outside of work hours. - Telecommuting policy
Having a telecommuting policy is mandatory for companies that allow remote working, regardless of the headcount. Your telecommuting policy should provide clear guidelines on work practices and expectations during remote work. - Strategic road safety plan
Companies that manufacture, assemble, own, sell, hire, or manage fleets of more than 10 vehicles are required to implement a strategic road safety plan. - Third-party approval in Colombia
Most employment contracts in Colombia do not need any third-party approvals, except for your workers aged 15 to 17. For these young employees, employers are required to get permission or authorisation from the Ministry of Labour to officially establish working relationships.
Contract terms in Colombia
Employment contract is only recognised and considered if it meets the following three criteria:
- The individual provides services directly.
- The employee is under the authority or subordination of the employer.
- There is compensation given for the services rendered.
In addition, an employment contract should clearly outline the terms that cover the job responsibilities, compensation, working hours, and termination conditions to protect both the employer and the employee.
Employment agreements can be either verbal or written. When it comes to paying employees, companies have the option to pay them monthly or bi-monthly. Employers can choose the option that best fits the needs of each employee.
Breach of an employment contract in Colombia
When an employer unjustifiably breaches an employment contract, Colombian labour law provide certain protections and remedies for the employee.
One of the key provisions is related to unjust dismissal, where the employer must invoke one or more of the fair causes established in Article 62 of the Colombian Labour Code to terminate an employment contract legally.
The employer is required to identify the contractual and legal standards that were breached or provide the facts that justify termination. It is also mandatory for the decision to be in written form.
On the other hand, the employer also has rights under the local law if an employee breaches the contract, such as through misconduct or failure to meet contractual obligations. They can terminate employment contracts under the just causes outline in the labour code, subject to due process.
In cases of contract termination, either party — employer or employee — may be entitled to compensation or may be required to meet certain obligations as required by law and the terms of the contract.
Contract extension in Colombia
The local labour laws regulate how employment contracts can be renewed or extended, protecting the rights of both employers and employees. You can extend fixed-term contracts as needed, but you must comply with certain regulations.
If the original fixed-term contract is for less than one year, it can be renewed multiple times for the same length. However, no renewal can be longer than the original contract if it lasts more than a year.
For independent contractors, there is no set limit on how many times they can renew their contract.
Reasons for employment contract extension in Colombia
Employment contracts, especially fixed-term contracts, can usually be extended if certain conditions are met. Valid reasons for extending a fixed-term contract include the ongoing job or project the employee was hired for.
If the reasons that justified the original contract still apply, the employer can extend it. In addition, the employer and employee can renew the contract with the same or new terms if they agree.
Fixed-term contracts in Colombia
Fixed-term contracts are a type of employment agreement that lasts for a set period. Because they offer flexibility, companies typically use them for short-term projects or temporary business needs.
In Colombia, fixed-term contracts have a maximum duration of three years, but they are subject to indefinite renewals. If a fixed-term contract is initially set for less than one year, it can be renewed up to three times, as long as each renewal is for the same length or shorter than the original contract. After three renewals, the contract can only be extended for one additional year.
Even though these contracts are temporary, fixed-term employees receive the same benefits as permanent employees, such as social security contributions, paid leave, and other legal benefits.
In addition, the employer must notify the employee 30 days before the contract ends if they do not want it to automatically renew on the same terms.
Working hours in Colombia
The average working hours in Colombia are up to 47 hours per week, and employees are entitled to at least one paid day off every six days, usually on Sundays. The Colombian Labour Code permits a work arrangement that spans five days, including Saturdays as rest days.
In addition, a recent law, Law 2101, has initiated a gradual reduction in the working week from 48 hours to 42 hours, implemented over several years. As of July 15, 2023, this law has reduced weekly work hours from 48 to 47 and plans further reductions in the coming years gradually between 2023 and 2026. These developments aims to improve work-life balance among workers and improve productivity.
Nonetheless, the salaries and social benefits of employees will not be affected given these changes under the new law.
Overtime in Colombia
Overtime work cannot exceed two hours per day or 12 hours per week. Work that happens at night, defined as between 9:00 p.m. and 6:00 a.m., must be paid 35% more than the equivalent daytime salary. Employees who earn more than 10x the minimum or in trust positions are not eligible for overtime.
Here’s the quick breakdown for the payment of overtime:
- Daytime overtime is paid at 125% of the regular pay rate. It increases to 175% of the standard pay rate for night-time overtime hours.
- On Sundays, holidays, or for any extra daytime work falling on these special days, overtime is paid at 175% of the regular rate for hours worked during these times.
Working week in Colombia
Monday – Friday or Monday – Saturday
Remote work in Colombia
When finalising your company’s remote work policy, you must keep in mind Law 2121. It regulates remote work and sets out the main requirements for remote work arrangements. The law defines remote work as a flexible arrangement that can be adapted to various job roles relying on technology to complete work duties outside the traditional office space.
As an employer in Colombia, you are required to provide the necessary technological tools and equipment for remote work. You must cover certain costs that come with remote work, such as internet and utilities. Aside from that, you must also ensure that the remote workspace complies with occupational health and safety standards.
Employees have the right to request to work from places other than the office, but this needs to be agreed upon by both the employer and the employee. In this setup, the entire employment process, from hiring to termination, can happen without needing in-person meetings at a specific office.
Moreover, employers also need to make sure that their remote work policies respect workers’ rights, including the right to disconnect, so that work doesn’t interfere with personal time and helps maintain a healthy work-life balance.
Remote work visa in Colombia
The digital nomad visa (Visa V Nómadas Digitales) caters to remote workers or self-employed individuals who wish to live and work in Colombia while being employed by companies based outside the country.
If granted a digital nomad visa, individuals can live and work in Colombia for up to 180 days of the year. Applicants must prove financial stability and prove they earn at least three times the minimum wage in Colombia. The visa application process is primarily done online and can be accessible to applicants globally.
Tailored employment contracts in 100+ countries
Like any other countries, Colombia has its own rules and regulations when it comes to employment contracts — and non-compliance could land your company in hot water.
Thankfully, our team is experienced in drawing up tailored, compliant contracts in Colombia (and more than 100 countries worldwide). That means that, when you work with us, you won’t need to waste time worrying about whether you’ve got it right. Instead, you can focus on what matters: growing your business.
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