Updated on: 2025/08/04 14:03 (UTC)
Overview
The primary source of labor law is the Código Sustantivo del Trabajo, commonly translated into English as the Substantive Labor Code. The code covers such issues as employment contracts, the minimum wage, the minimum age for employment, termination and dismissal, maternity protection, hours of work and overtime, leave, occupational safety and health, trade unions and the right to strike.
Hiring
Employment Contracts
Any person 18 years of age or older may enter into an employment contract, according to the Substantive Labor Code. The contract for an indefinite term of employment may be oral or written, but a contract for a fixed term of employment must be written. The duration of a fixed term contract may not be longer than three years, but the contract is renewable indefinitely.
In an oral contract, the employer and the employee must agree at minimum on the work and the location of the work site, remuneration and the duration of the contract.
A written contract must contain:
- the identification and domicile of the parties,
- the place and the date of its execution,
- the place where the worker has contracted and where the worker will provide the service,
- a description of the employee’s duties and
- the remuneration, its form and the schedule for payment.
Each party must get a copy of the contract.
If a probationary period is included as the initial stage of employment, this must be stipulated in writing. Similarly, an apprenticeship contract must be in writing.
The Substantive Labor Code provides that the maximum probationary period is two months, during which either the employer or the employee may terminate employment without prior notice.
The employment contract is deemed suspended if an employee is called to military service. The employer must allow the employee to resume the same job within 30 days after service is completed.
Work from home. Law 2088 of 2021 allows employees, in exceptional, occasional or special circumstances, to perform their duties outside the place where they normally perform their work for up to six months. Employers generally must furnish equipment and technology to employees to enable them to work remotely, although both parties may agree that employees will use their own equipment.
Employees have the right to avoid any work-related contact from their employers outside their working hours, including vacations or overtime work. Employers that do not comply can be found guilty of labor harassment. Exceptions apply for managers and employees who must be permanently available for their role.
Restrictions on Hiring
The minimum legal age for employment is 15, although younger children may receive authorization from the local government to work for compensation in activities involving art, culture, recreation or sports for a maximum 14 hours per week.
Children 15 to 17 years of age may work a maximum of six hours a day and 30 hours per week and may not work after 6 p.m. Children 17 and 18 years of age may work a maximum of eight hours a day and 40 hours per week and may not work after 8 p.m.
All child workers are prohibited from working at night or performing work where there is a risk of bodily harm or exposure to excessive heat, cold or noise.
Companies that employ more than 10 workers must attempt to ensure that 90 percent (80 percent at minimum) of the workforce is comprised of Colombians. Employers may request exceptions to this rule from the Ministry of Labor to hire foreign employees with specific technical skills but only for the time needed to train Colombian personnel. Foreign workers are entitled to the same pay and conditions as Colombian employees.
Women are not allowed to work underground in mines or in any dangerous or hazardous work. They are also prohibited from working at night in a factory.
Pregnant women may not do any work that requires them to lift heavy weights, remain standing, continually move or handle heavy machinery. Pregnant women may not work at night for more than five hours.
Recordkeeping
Employers with five or more employees working without written contracts must keep records of the workers’ income signed by both parties and including the job’s requirements and location, the amount and form of compensation and the duration of the contract.
Background Checks
Employers are not allowed to conduct a background check on applicants without a previous and express authorization by the applicant. It is illegal for employers to request employees’ medical records or try to access them in any shape or form.
Noncompetition Agreements
The Substantive Labor Code declares void any provision in an employment contract by which an employee agrees not to work in a particular activity or not to provide services to competitors upon completion of the employment contract. Revealing technical secrets or publicizing confidential matters is considered just cause for an employee’s dismissal.
Reference Citations
Employment Contracts: Substantive Labor Code, 1950, No. 3,518, arts. 37-39, 45-47, 51, 76-78 (Spanish)
Restrictions on Hiring: Substantive Labor Code, 1950, No. 3,518, arts. 74, 171 (Spanish); Law No. 1,429, 2010, art. 9 (Spanish)
Recordkeeping: Substantive Labor Code, 1950, No. 3,518, art. 42 (Spanish)
Noncompetition Agreements: Substantive Labor Code, 1950, No. 3,518, arts. 44, 62 (Spanish)
Immigration and Work Permits
In General
Employers must ensure that prospective foreign employees obtain the appropriate visa or work permit before working in Colombia. Any company that employs foreign workers is the official sponsor of those workers while they are in Colombia. Visas may be obtained at a Colombian consulate in the prospective employee’s home country or through the Ministry of Foreign Affairs in Bogota.
Visas and Work Permits
On December 15, 2018, a new visa regime took effect which changed the country’s visa classifications to Visitor (V), Migrant (M), and Resident ® visas. All visas are issued for multiple entries. Visa applicants must submit a motivation letter and ensure their supporting documents are no more than three months old. Visas issued prior to the effective date of the new visa regime will keep their validity and conditions.
The Visitor (V) visa is valid for up to two years and allows travelers to take part in business negotiations, market studies, investment plans, and business creation. This category also applies to short-term service providers, ships’ crew, lecturers, artists, and trainees.
The Migrant (M) visa is valid for up to three years and applies to foreign nationals employed in Colombia, investors, Mercosur nationals, foreign spouses and partners of Colombian nationals, and students. M visas may be valid for a shorter duration than three years based on the length of employment contracts. Foreign national applying as employees must provide a copy of their employment contract. Employers sponsoring foreign nationals for migrant work visas must be able to show a bank balance of 100 legal minimum monthly salaries.
The Resident ® visa is valid indefinitely and applies to foreign nationals who are seeking to obtain permanent residence in Colombia. Resident visas will not be granted to foreigners who have been out of the country for more than 180 continuous days.
Newly hired foreign national employees must be registered with the Ministry of Labor within 120 days of the establishment of the employment contract. The registration is valid for the length of the employment contract, and any changes must be reported within 30 days.
Digital Nomad Visa. Effective Oct. 22, 2022, people seeking to work remotely in Colombia for a company that does not have a presence in the country can apply for a digital nomad visa. The visa can also be used by people who plan to start a digital or information technology business. The visa is valid for up to two years.
Penalties
Companies that employ foreign workers without the appropriate documentation are subject to fines.
Reference Citations
Visas and Work Permits: Resolution 6,045 of August 2, 2017 (Spanish)
Nondiscrimination
In General
Employers may not discriminate against employees or prospective employees on the basis of their age, sex, nationality, race, religion, disability, family or national origin, social status, political opinions, or trade union activities or other factors not pertinent to employment.
The Labor Code prohibits differences in pay based on age, sex, nationality, race, religion, political opinions or trade union activities, and Law 1,010 of 2006 prohibits discrimination in employment based on race, gender, family or national origin, religion, political preference, social status or other factors not pertinent to employment. Law 1,496 of 2011 went further, stating that all workers are equal before the law. Other legislation specifically prohibits discrimination based on disability or age. Offensive or injurious language regarding an employee’s race, gender, family or national origin, political preference or social status is considered employment harassment and is also prohibited.
Disability Discrimination
Discrimination in employment based on disability is prohibited. Law 1,618 of Feb. 27, 2013, strengthens Law 361 of 1997, which prohibits an employer from refusing to hire a person with a disability unless the disability would prevent the person from fulfilling job responsibilities. The law also prohibits the dismissal of an employee because of the employee’s disability without authorization by the Ministry of Social Protection. The 2013 law adds inclusion measures such as affirmative action and reasonable accommodation.
Harassment
Employers must create a work group within the organization made up of employee and employer representatives to examine harassment complaints made by employees. Effective May 23, 2022, employees who file harassment complaints cannot be dismissed without due cause for three years after the formal complaint. The protection also applies to employees who served as witnesses in a harassment complaint.
Gender Discrimination
An employee may not be dismissed solely because she is pregnant or breast-feeding. The law presumes that a dismissal during an employee’s pregnancy or within three months after childbirth was made because she was pregnant unless the employer receives authorization from the Ministry of Social Protection after a hearing of evidence from both the employer and the employee. If the employee is dismissed without authorization, she is entitled to receive additional compensation representing 60 days’ wages, any benefits owed under the employment contract and pay for any part of the 14-week maternity leave period that has not been used.
Pay Discrimination
Article 143 of the Substantive Labor Code states that there shall be no differences in pay based on age, sex, nationality, race, religion, political opinions or trade union activities.
Reference Citations
Nondiscrimination: Substantive Labor Code, 1950, No. 3,518, art. 143 (Spanish); Law No. 1,496 of 2011, art. 2 (Spanish)
Disability Discrimination: Law No. 1,618 of 2013 (Spanish)
Gender Discrimination: Substantive Labor Code, 1950, No. 3,518, art. 239 (Spanish); Law 1,010 of 2006 (Spanish)
Pay Discrimination: Substantive Labor Code, 1950, No. 3,518, art. 143 (Spanish)
Sexual Orientation Discrimination: Law No. 1,010 of 2006 (Spanish); Law No. 1,496 of 2011 (Spanish)
Employee Privacy
Employee Data
Employers generally must obtain employees’ consent prior to collecting their personal data, except when the processing is required by law or the data is of a public nature. Employers must preserve proof of employees’ consent. Employees can revoke their consent unless doing so to avoid a legal or contractual obligation.
Employees have the right to update, rectify, or suppress their data. The collection of sensitive personal data (i.e. pertaining to a person’s race, ethnicity, or sexuality) is prohibited unless the collection is required by law.
Employees must be notified, either in writing, verbally, or electronically, about:
- the purpose of the data collection;
- their privacy rights; and
- how they can access the employer’s privacy policy.
Employers must designate an individual who will be responsible for the privacy practices of the organization. International transfer of personal data is prohibited unless it is transferred to a country with equal or higher standards for protecting personal data.
Employee Monitoring and Surveillance
Employers must obtain express and informed consent of employees prior to monitoring them via surveillance cameras, telephones, or computers. Officials from the Ministry of Labor are empowered to engage in monitoring and surveillance of workers, managers, or members of trade unions to maintain safe workplace conditions and to protect workers in their exercise of their right to freedom of association.
Reference Citations
Employee Data: Law number 1581 of 2012, arts. 4-10
Compensation
Hours of Work
Regular working hours are eight per day and 48 per week. The eight-hour daily limit does not apply to managerial and supervisory workers. Night work is all work done between 10 p.m. and 6 a.m.; day work is all work carried out between 6 a.m. and 10 p.m.
Law 2101 of 2021 will eventually reduce the workweek in Colombia to a maximum of 42 hours per week. The law takes effect in increments as follows: in 2023, the workweek will be reduced to 47 hours. In 2024, it will be reduced to 46 hours. In 2025, it will be reduced to 44 hours per week. In 2026, the maximum number of weekly work hours will be 42.
An employer and an employee may agree to a flexible schedule of 48 work hours distributed over a maximum of six days with a compulsory rest day on Sunday. In this situation, work hours may range from a minimum of four continuous hours per day up to 10 hours per day without payment for overtime.
Night work is all work done between 9 p.m. and 6 a.m.; day work is all work carried out between 6 a.m. and 9 p.m. Employees who work regularly at night are paid a 35 percent premium over wages paid for the same work done during the day. When overtime is worked at night, a premium of 75 percent is paid.
Work hours may be extended temporarily without government permission in the case of actual or potential emergency or accident.
If the job duties are hazardous or dangerous, the government may authorize a work day that is shorter than eight hours.
The workday is broken into at least two parts with a break that suits the nature of the work and the employees’ needs. The rest break is not counted as working time.
Sunday is generally the rest day for employees. The weekly rest period must be at least 24 continuous hours.
Work done on Sundays or legal holidays is paid with a premium of 25 percent over the regular wage rate. In addition, an employee who usually works on Sunday or on legal holidays is entitled to a compensatory rest day with pay during the week. Sunday work is considered usual when the employee works three or more Sundays during a calendar month. If an employee works on a Sunday or legal holiday as an exception, the employee may choose either a compensatory rest day with pay or compensatory pay only.
Minimum Wage
From Jan. 1, 2024, the monthly minimum wage is 1,300,000 pesos. From Jan. 1, 2023, the monthly minimum wage was 1,160,000 pesos.
A 15-member committee, the Permanent Commission for the Bargaining of Labor and Wage Policies, is authorized to set the monthly minimum wage annually on or before Dec. 30 for all private sector workers. Government, business and organized labor have equal representation on the committee. If the committee cannot reach a consensus, the president of Colombia makes the decision. A collective bargaining agreement can also set a minimum wage, which cannot be lower than the minimum wage set by the commission.
Overtime
Overtime is paid with a 25 percent premium over the regular wage rate if the overtime work is done during the day, 6 a.m. to 9 p.m., or a 75 percent premium if the overtime work is done at night, 9 p.m. to 6 a.m. Overtime is limited to two hours per day and 12 hours per week.
Overtime pay must be included in payment for the period in which it falls or at the very latest in the following regularly scheduled pay period.
If a workday is extended by mutual agreement between the workers and the employer to 10 hours a day, workers may not work overtime on those days.
Wage Payment
Wages must be paid at least monthly at the employee’s workplace during or immediately following working hours unless both parties agree to a different arrangement.
Employers are prohibited from withholding any part of an employee’s wages or cash benefits without the written permission of the worker.
Employers are not required to continue to pay workers’ salaries in the event of:
- acts of God,
- suspension of the employer’s activities for more than 120 days for economic reasons or
- uncompensated absence request by workers.
Mandatory Bonuses
All employers with income of over 200,000 pesos in a year are required to pay a “prima,” or premium or bonus, to employees twice a year. This premium should equal one month of normal salary and one half of the premium should be paid within the last 15 days of June and one half should be paid within the first 20 days of December.
Employers with less than 200,000 pesos of income are required to pay their employees a premium equal to two weeks of pay; one week to be paid in June and one week to be paid in December.
Reference Citations
Hours of Work: Substantive Labor Code, 1950, No. 3,518, arts. 160-166 (Spanish); Law 1,846 of 2017 (Spanish)
Minimum Wage: Substantive Labor Code, 1950, No. 3,518, arts. 145, 160 (Spanish); Law 1,846 of 2017 (Spanish)
Overtime: Substantive Labor Code, 1950, No. 3,518, arts. 160, 167-168 (Spanish); Law 1,846 of 2017 (Spanish)
Wage Payment: Substantive Labor Code, 1950, No. 3,518, arts. 134-135 (Spanish)
Mandatory Bonuses: Substantive Labor Code, 1950, No. 3,518, art. 306 (Spanish)
Benefits
Vacation
Employees are entitled to 15 consecutive days of annual leave with full pay after one year of service. Employees are required to take at least six annual leave days a year.
In cases where the employer wants the employee to take leave on a specific day, it must inform the employee of the dates of leave at least 15 days prior to the date on which that leave will begin.
An employee may voluntarily accept payment in lieu of up to half the annual vacation allotment. Up to four years of vacation leave can be accrued.
Holidays
Employees are entitled to 18 statutory holidays:
- Jan. 1: New Year’s Day
- Jan. 6: Epiphany*
- March 19: St. Joseph’s Day*
- Holy Thursday (date varies)
- Good Friday (date varies)
- May 1: Labor Day
- Ascension of Jesus (date varies)*
- Corpus Christi (date varies)
- Sacred Heart (date varies)*
- June 29: St. Peter and St. Paul*
- July 20: Independence Day
- Aug. 7: Battle of Boyacá
- Aug. 15: Assumption of Mary*
- Oct. 12: Columbus Day*
- Nov. 1: All Saints’ Day*
- Nov. 11: Independence of Cartagena*
- Dec. 8: Feast of the Immaculate Conception
- Dec. 25: Christmas
*When these dates fall on a day other than Monday, the holiday is taken on the following Monday. Employees who are required to work on a holiday are entitled to a 75 percent premium above their basic pay.
Maternity Leave
The Substantive Labor Code guarantees maternity leave for all women employees in the private sector. Public sector employees are covered by other statutes.
Maternity leave is 18 weeks at full pay. One week must be taken before the due date (extendable to two weeks in cases of medical necessity). If the parents agree, they can transfer the last six weeks of maternity leave to the father.
Starting from the 13th week of their maternity leave, mothers may extend their leave by opting for a part-time leave arrangement with the agreement of their employer. The leave extension is equivalent to double the time for the selected period. For example, if the mother opts to take two weeks under the part-time leave arrangement, it would mean the leave is extended by four weeks, with half the time corresponding to part-time work and the other half to parental leave.
An employee who has an abortion, suffers a miscarriage or gives birth prematurely to a nonviable child is entitled to a rest period of two to four weeks’ leave with full pay upon production of a medical certificate. A woman who has a stillborn child is entitled to the full maternity leave of 18 weeks at full pay.
Maternity leave for mothers of premature babies takes into account the difference between the birth date and the due date and adds that amount of time to the 18-week maternity leave. In the case of multiple births, the mother is granted additional time due to prematurity plus an additional two weeks.
If the mother dies before the end of maternity leave, the child’s father is granted time off until the expiration of the deceased mother’s postnatal leave.
The employer must keep the employee’s job open during her maternity leave.
When the employee returns to work, she can take two 30-minute breaks per day for breast-feeding or as rest breaks with no reduction in wages until the child is 6 months old. If she produces medical certification that she requires more frequent breaks, the employer must grant the extra time.
Employers must establish premises adjacent to the workplace for nursing or another place suitable for the care of a child. Employers with assets greater than 1,500 minimum monthly wages or those with lower assets but over 50 female employees must ensure that their nursing rooms comply with the following requirements:
- the rooms must be in a clean location away from pollution, noise, humidity, or other unhealthy conditions;
- a person must be designated to be responsible for the physical space; and
- a training plan geared towards pregnant and breastfeeding women must be offered at least three times a year.
A woman who is adopting a child may take the same amount of leave and other benefits, starting on the day the employee takes custody of the child. The adoption provision applies to workers in both the private and the public sectors.
Paternity Leave
A working father is entitled to 10 days of leave with full pay after the birth of his child to his spouse or permanent partner or the adoption of a child by him and his wife or permanent partner. The father must have at least 100 weeks of contributions to the social security system to qualify for full cash benefits.
A single man who is adopting a child is entitled to the full 18 weeks of paid leave and other benefits granted for maternity leave, starting on the day the employee takes custody of the child.
If the parents agree, they can transfer the last six weeks of maternity leave to the father as additional paternity leave. Starting from the second week of paternity leave, fathers may extend their leave by opting for a part-time leave arrangement with the agreement of their employer. mothers may extend their leave by opting for a part-time leave arrangement with the agreement of their employer. The leave extension is equivalent to double the time for the selected period. For example, if the father opts to take one week under the part-time leave arrangement, it would mean the leave is extended by two weeks, with half the time corresponding to part-time work and the other half to parental leave.
Employers cannot dismiss an employee whose spouse or partner is pregnant or gave birth within eighteen weeks and is not formally employed. Employers may only dismiss employees under these circumstances if they receive authorization from the Labor Ministry.
Sick Leave
An employee with at least four weeks’ contributions to the social security system is eligible for 180 days’ sick leave at two-thirds pay. The employer pays for the first two days of the absence, the social security system for the remainder.
If the illness or injury is work-related, the employee will receive 100 percent of salary from the social security system.
Other Leave
Bereavement. An employee is entitled to five days’ paid leave for the death of a spouse or permanent partner, a parent, a child, a sibling, a grandparent, a grandchild, a mother- or father-in-law, a son- or daughter-in-law, a stepchild or a stepparent.
Voting. Employees are entitled to personal leave to vote.
Trade union. Employees are entitled to personal leave to serve on a trade union committee. Employees also are entitled to leave for other trade union purposes if they give adequate notice to the employer and the absence does not adversely affect the business.
Personal. An employee may take five days’ paid leave to attend to “serious” personal matters.
Military Service. The employment contract is deemed suspended if an employee is called to military service. The employer must allow the employee to resume the same job within 30 days after service is completed.
Pensions and Social Security
The social security system covers benefits for sickness, maternity, non work-related disability, workers’ compensation and old age pensions. All Colombian workers are legally required to be affiliated with a basic pension and health provider. Both employers and employees contribute to the unified social security system.
For medical benefits, an employee may choose either the public or the private health care system. Benefits and facilities vary depending on the health plan. Benefits include medical, surgical, hospital, pharmaceutical, maternity and dental care and related services. Preexisting conditions must be covered, although they may be subject to a waiting period. There is no waiting period for pregnant women.
Health registration is mandatory for all dependent workers and those hired through an employment contract. Employers and employees must make joint contributions to the health insurance system. The employer’s portion is 8.5 percent of the employee’s income, and the employee’s contribution is 4 percent (which also includes an employee pension contribution).
For old age and survivors’ benefits and non work-related disability benefits, an employee may choose either the public social insurance system or a private system based on individual accounts and may switch between the systems every five years until the last 10 years before retirement. The employer contribution to the pension system is 12.5 percent of payroll. The minimum earnings for contribution purposes are equal to the minimum monthly wage.
Sickness: To qualify for benefits, an employee must have at least four weeks of contributions immediately before the claim, except in an emergency. The benefit is equal to two-thirds of the insured’s earnings in the month before the incapacity began and is paid after a four-day waiting period for up to 180 days.
Maternity Benefits: To qualify for cash maternity benefits, an employee must have at least nine months of contributions to the social security system before the due date.
The Compulsory Health Plan for pregnant women covers medical services for prenatal checkups, birth, postpartum checkups and complaints directly related to breast-feeding. There is no waiting or qualifying period for pregnant employees to receive medical services.
Non Work-Related Disability Benefits: For an assessed degree of permanent disability greater than 66 percent, the employee receives a pension equal to 54 percent of the basic monthly wage plus 2 percent of earnings for each 50-week period of contributions exceeding 800 weeks. For an assessed degree of permanent disability between 50 percent and 66 percent, the pension is equal to 45 percent of the basic monthly wage plus 1.5 percent of earnings for each 50-week period of contributions exceeding 500 weeks.
The assessed degree of disability is reviewed every three years.
The minimum pension is equal to the monthly minimum wage; the maximum pension is equal to 75 percent of the employee’s basic monthly wage. The basic monthly wage is based on the worker’s average earnings in the last 10 years before receiving the pension.
The government pays a disability settlement if the worker does not meet the contribution requirements.
Old Age Benefits: For those who participate in the individual account system, men at age 62 and women at age 57 who have at least 1,150 weeks of contributions are eligible to retire and receive a guaranteed minimum pension if they have a sufficient amount in their accounts.
An alternative is the pension paid under the social insurance program. Under that program, women may retire at age 57, men at age 62 and workers in certain hazardous occupations earlier. The required period of contributions to qualify for the social insurance pension is 1,300 weeks.
Under the social insurance system, the old-age pension is between 55 percent and 65 percent of the basic monthly wage plus 1.5 percent for each 50-week period of contributions up to a maximum of 80 percent of the basic monthly wage. The basic monthly wage is based on the insured’s average earnings in the last 10 years before receiving the pension. In 2012, the law on pensions was amended to include a family pension that recognizes the combined contributions of each spouse or permanent partner.
With an individual account, the retiree may make periodic withdrawals, buy an annuity from a private insurance company or use a combination of the two.
The government is responsible for paying a minimum pension or settlement set by law if a worker does not meet the full qualifying conditions for a social insurance old-age pension or the accumulated amount in the private account is too low.
Survivors’ Benefits: The survivors’ pension is equal to 45 percent of the deceased’s monthly earnings plus 2 percent for each 50-week period of contributions exceeding 500 weeks up to a maximum of 75 percent of the deceased’s monthly earnings. Monthly earnings are based on the deceased’s average earnings in the last 10 years.
The government pays a settlement to the survivors if the deceased did not meet the qualifying conditions for a pension.
The minimum survivor pension is equal to the monthly minimum wage; the maximum survivor pension is equal to 100 percent of the deceased’s pension.
Workers’ Compensation
Employees make no contributions to the workers’ compensation fund. Employers contribute 0.348 percent to 8.7 percent of covered payroll, according to an assessed degree of risk. The minimum earnings for contribution purposes and benefit calculations are equal to the monthly minimum wage. The maximum covered earnings are 25 times the monthly minimum wage. There is no minimum qualifying period for an employee to receive benefits.
Temporary disability benefits are paid at 100 percent of the employee’s covered earnings from the day after a work injury occurred or an occupational disease was diagnosed. The benefit is paid until rehabilitation, the award of a permanent disability benefit or death.
For permanent disability, the pension amount varies according to the assessed degree of disability. The minimum pension is equal to the legal minimum wage. The maximum pension is equal to 20 times the legal minimum wage.
Survivors may receive a pension. The minimum pension is equal to the legal monthly minimum wage. The maximum pension is equal to 100 percent of the deceased’s pension. Eligible survivors are a widow or partner who lived with the deceased for at least five years or who had children with the deceased, a dependent disabled widower, children younger than age 18 or age 25 if a student (no limit for a disabled child), dependent parents or a disabled brother or sister.
Reference Citations
Vacation: Substantive Labor Code, 1950, No. 3,518, arts. 186, 190 (Spanish); Law No. 995 of 2005, art. 1 (Spanish)
Holidays: Substantive Labor Code, 1950, No. 3,518, art. 177 (Spanish)
Maternity Leave: Substantive Labor Code, 1950, No. 3,518, arts. 236, 239-241 (Spanish); Law 1822 of 2017 (Spanish); Law No. 1,823 of 2017 (Spanish)
Paternity Leave: Substantive Labor Code, 1950, No. 3,518, art. 236 (Spanish); Law 1822 of 2017 (Spanish); Resolution 2423 of 2018, Which Establishes the Technical Parameters for the Operation of the Friendly Rooms Strategy (Spanish)
Sick Leave: Decree 2,943 of 2013 (Spanish)
Other Leave: Substantive Labor Code, 1950, No. 3,518, art. 51 (Spanish)
Pensions and Social Security: Law No. 100 of 1993 (Spanish)
Labor Relations
In General
The Colombian Constitution and labor law guarantee to all employees except members of the armed forces and the police the right to form or join trade unions.
Right to Organize
The Substantive Labor Code provides for recognition of unions that obtain 25 signatures from potential members and comply with a government registration process.
In 2011, the Colombian government committed to a Labor Action Plan to protect internationally recognized labor rights, prevent violence against labor leaders and prosecute those who perpetrate such violence, according to the U.S. State Department’s 2013 report on human rights in Colombia. In addition, the Colombian government signed a tripartite accord with the business community, the General Labor Confederation and the Colombian Pensioners’ Confederation to advance labor rights. Violence and discrimination against union members continue to discourage some workers from joining unions and engaging in union activities, however, and only a small percentage of Colombian workers belong to unions.
Dispute Resolution
The employer cannot impose sanctions against an employee not stipulated by law, a collective agreement, arbitration or an individual employment contract. Before a sanction is imposed, the employer must give the employee—accompanied by two representatives of a trade union if the employee is a member—an opportunity to be heard.
Strikes and Lockouts
Strikes are permitted under the labor code except in cases where the workers provide essential services.
Successorship Clauses
In cases where a business is transferred or sold, the new employer assumes the obligations arising under the previous employer’s labor contracts, and all terms and conditions of employment are preserved.
Reference Citations
Right to Organize: Substantive Labor Code, 1950, No. 3,518, arts. 12, 359 (Spanish)
Dispute Resolution: Substantive Labor Code, 1950, No. 3,518, arts. 112-113, 115 (Spanish)
Strikes and Lockouts: Substantive Labor Code, 1950, No. 3,518, arts. 21, 430, 450 (Spanish)
Successorship Clauses: Substantive Labor Code, 1950, No. 3,518, arts. 68-69 (Spanish)
Safety, Health and Security
In General
The Colombian Constitution and labor law guarantee to all employees except members of the armed forces and the police the right to form or join trade unions.
Workplace Safety and Health
Employers with more than five permanent workers in a commercial enterprise, more than 10 industrial workers or more than 20 agricultural workers are required by the Substantive Labor Code to adopt safety and health measures to protect their workers. Such policies include the prevention of accidents and illness and the use of protective gear when working with electricity or potentially hazardous materials.
Drug and Alcohol Use
Employees are prohibited from reporting to work intoxicated or under the influence of narcotics or enervating drugs.
Reference Citations
Workplace Safety and Health: Substantive Labor Code, 1950, No. 3,518, arts. 104-108 (Spanish)
Drug and Alcohol Use: Substantive Labor Code, 1950, No. 3,518, art. 60 (Spanish)
Termination
Termination by Employer
Except in cases of gross misconduct, the employer must give the employee written notice at least 15 days before termination.
The following circumstances, enumerated in the Substantive Labor Code, are considered valid reasons (just cause) for an employer to dismiss an employee:
- false information about his or her qualifications presented when applying for the job;
- any act of violence, insults or bad treatment by the employee at the workplace against the employer, the employer’s family, managers or co-workers;
- serious acts of violence, insults or bad treatment by the employee outside the workplace against the employer, the employer’s family or agents or managers;
- intentional material damage by the employee to buildings, machinery, raw materials, tools or other work-related objects and all acts of gross negligence that endanger the safety of persons or property;
- any immoral or criminal act that the worker committed in the workplace or in the course of work;
- any serious breach by the employee of special obligations or prohibitions in the Substantive Labor Code, employment contract or collective agreements;
- arrest and detention awaiting trial for more than 30 days unless subsequently acquitted;
- imprisonment for more than eight days, fewer than eight days if the reason for the imprisonment would be itself sufficient cause for dismissal;
- release of technical or trade secrets or confidential information causing serious harm to the employer;
- low output in relation to the capacity of the worker;
- systematic breach, without valid reasons, of the employee’s legal or conventional obligations;
- vices of the employee that disrupt workplace discipline;
- persistent refusal to accept preventive or protective measures prescribed by the employer, medical professionals or the government to prevent accidents or diseases;
- ineptitude in carrying out duties;
- reception of a retirement or disability pension while in the service of the employer or
- a contagious disease—or a disease that incapacitates the employee—that has not been cured within 180 days.
Employers cannot dismiss an employee whose spouse or partner is pregnant or gave birth within eighteen weeks and is not formally employed. Employers may only dismiss employees under these circumstances if they receive authorization from the Labor Ministry.
When an employment contract is terminated, an employer must pay the worker one month’s wages for each year of service and a proportional amount for periods of less than one year.
No severance pay is owed if termination was due to one of the following reasons:
- the worker committed a criminal act against the employer or any member of the employer’s family or any manager;
- the worker intentionally caused serious material damage to the company’s buildings, machinery, raw materials, or equipment; or
- the worker revealed technical or trade secrets or confidential information causing serious harm to the company.
Trade union officers may not be dismissed unless a labor magistrate rules that the employer has a valid reason.
Employers must obtain approval from the Labor Ministry prior to dismissing an employee protected from termination due to a health condition, even if just cause exists.
Termination by Employee
An employee may unilaterally terminate an employment contract for the following reasons:
- any act of violence, bad treatment or serious threats against the employee or family members by the employer or by the employer’s relatives or representatives with the consent or toleration of the employer;
- any act by the employer or the employer’s representatives that induces the employee to commit an illegal act or one contrary to the employee’s political or religious convictions;
- actions by the employer that endanger the employee’s safety or health that the employer refuses to modify;
- a serious breach by the employer of obligations under the Substantive Labor Code or under collective agreements, regulations or individual contracts and
- substitution by the employer without valid reasons of a different job site or job duties for those in the employment contract.
The employee must give the employer written notice of at least 30 days, including the reason for terminating the employment contract. Different reasons or causes cannot subsequently be invoked.
Plant Closings and Mass Layoffs
A collective dismissal or mass layoff occurs when defined percentages of employees are dismissed without just cause over six months, as follows:
- 30 percent of employees dismissed from a payroll with 11 to 50 workers,
- 20 percent of employees dismissed from a payroll with 51 to 100 workers,
- 15 percent of employees dismissed from a payroll with 101 to 200 workers,
- 9 percent of employees dismissed from a payroll with 201 to 500 workers,
- 7 percent of employees dismissed from a payroll with 501 to 1,000 workers and
- 5 percent of employees dismissed from a payroll with over 1,000 workers.
An employer must get prior authorization from the Ministry of Social Protection before conducting a collective dismissal. The employees must be informed in writing when the employer submits its request to the ministry.
Payment on Termination
When an employment contract is terminated, an employer must pay the worker one month’s wages for each year of service and a proportional amount for periods of less than one year.
If an employer terminates an employee without just cause, the employee is entitled to an indemnity, the amount of which depends on the employee’s length of service.
If the worker was employed for one year or less, the payment is 45 days’ wages. For one to five years of service, the worker is entitled to a base payment of 45 days’ wages plus 15 days’ wages for each year of service after the first year. For five to 10 years of service, the worker is entitled to a base payment of 45 days’ wages plus 20 days’ wages for each year of service after the first year. For more than 10 years of service, the worker is entitled to a base payment of 45 days’ wages plus 40 days’ wages for each year of service after the first year.
Unemployment Insurance
Unemployment benefits are equal to one month’s wages for each year of employment. A reduced benefit is paid for less than a year of employment. An employer contributes 8.3 percent of an employee’s annual salary to the unemployment benefits fund. The employee makes no contribution.
Reference Citations
Termination by Employer: Substantive Labor Code, 1950, No. 3,518, art. 62 (Spanish); Decree No. 135 of 2014 (Spanish)
Termination by Employee: Substantive Labor Code, 1950, No. 3,518, art. 62 (Spanish)
Plant Closings and Mass Layoffs: Law No. 50 of 1990, art. 67 (Spanish)
Payment on Termination: Substantive Labor Code, 1950, No. 3,518, art. 64 (Spanish)
Unemployment Insurance: Law No. 789 of 2002 (Spanish)
Personal Taxes
Residency Requirements
An individual is regarded as being domiciled in Colombia for tax purposes if resident in the country for more than 183 days during a year.
Colombian nationals residing in another country but whose family, business or assets remain in Colombia are also considered tax residents.
Taxable Income
Residents of Colombia are taxed on their worldwide income. Nonresidents are taxed only on their Colombia-source income. Employment income is treated as Colombia-source income if it is paid for services performed in Colombia regardless of the place or time of payment. Bonuses paid abroad that relate to periods of service in Colombia, for example, will constitute taxable income for both residents and nonresidents.
Employees receiving wages can exclude 25 percent of their income from tax up to a ceiling revised annually.
Failure to pay taxes on time carries a penalty with interest.
Tax Rates
Nonresidents are taxed at a flat 35 percent. The rate for residents is progressive, ranging from 0 percent to 39 percent, and depends on whether the individual is an employee, an independent contractor or a venture capitalist, as well as on the level of income and on whether the taxpayer has decided to pay the income tax based on the ordinary system, the alternative or the simplified tax system.
Reference Citations
Residency Requirements: Decree No. 624 of 1989, art. 10 (Spanish)
Tax Rates: Colombia Tax Code, No. 624, 1989, arts. 240-241 (Spanish)
Web References
Law and Regulation
Constitution of Colombia (Spanish)
Substantive Labor Code (Spanish)
Government Websites and Publications
In Spanish unless otherwise noted.
Ministry of Labor (MinTrabajo)
Ministry of Health and Social Protection