Employee Rights in Colombia
Capital
Bogota
Official Language
Spanish
Currency
Colombian Peso
Payroll cycle
Monthly, Bi-Weekly
Quick facts about Colombia
Straddling the border between Central and South America, Colombia is one of the most biodiverse countries in the world. From the country’s high altitude sprawling capital Bogotá to the Caribbean island San Andres, Colombia offers some of the best natural resources in the world. The country is known for its robust education system, which makes it an appealing place to build out a local employment hub.
Colombia is emerging as one of the top leaders for hiring and developing tech in Latin America. Employee rights in Colombia are a crucial part of the hiring process, and you’ll need to understand these labor laws before you hire or expand into the country.
In this guide, we’ll highlight some of the basic employment rights that govern Colombia, as well as what employers need to know about hiring both foreigners and citizens.
Labor Laws in Colombia
The Labour Code
The primary source of employment regulations are stipulated in The Labour Code, also known as the Código Sustantivo del Trabajo. The Labour Code covers a wide range of topics related to employment, including:
Employment contracts: Sets out the requirements for employment contracts, including the minimum content that must be included in a contract.
Working hours: Establishes the maximum number of working hours per week (48 hours) and the rules for calculating overtime pay.
Wages: Sets out the minimum wage that must be paid to employees in Colombia and establishes rules for the payment of salaries, including the frequency of payment and the deductions that may be made from an employee's salary.
Vacation: Establishes the right of employees to receive paid vacation, including the minimum amount of vacation time that must be provided.
Termination of employment: Sets out the rules for terminating an employment contract, including the reasons for which an employer may terminate an employee's contract and the procedures that must be followed.
Social security: Establishes the requirement for employers to contribute to the social security system for their employees, which provides benefits such as healthcare, pensions, and disability insurance.
Labor disputes: Establishes the procedures for resolving labor disputes, including the role of labor courts and arbitration.
Occupational Health and Safety Act (OSHA)
The Occupational Health and Safety Act in Colombia, also known as Ley de Riesgos Laborales, is a law that establishes the requirements for employers to ensure a safe working environment for their employees. The law aims to prevent occupational hazards, reduce workplace accidents and illnesses, and promote the health and safety of workers in Colombia.
Some of the key provisions of the Occupational Health and Safety law in Colombia include:
Risk assessment: Employers are required to identify and assess the risks associated with their workplace, and take measures to eliminate or control those risks.
Training: Employers are required to provide training to employees on occupational health and safety, including the use of protective equipment and the procedures to follow in case of an emergency.
Protective equipment: Employers are required to provide their employees with the necessary protective equipment to minimize the risks associated with their work, such as helmets, gloves, and safety shoes.
Health surveillance: Employers are required to carry out health surveillance of their employees to detect and prevent work-related illnesses and injuries.
Accident investigation: Employers are required to investigate any accidents that occur in the workplace and take measures to prevent similar accidents from occurring in the future.
Reporting: Employers are required to report any work-related accidents, illnesses or fatalities to the relevant authorities.
Inspections: The Occupational Health and Safety law also provides for inspections by government authorities to ensure compliance with the law.
Social Security Law
Through the Colombian Social Security Law (Ley de Seguridad Social), employees are entitled to health insurance, pensions, and other required benefits.
Some of the most important provisions of the social security law in Colombia include:
Health insurance: The social security law establishes a system of health insurance that provides access to medical care for employees and their families. Employers are required to contribute to this system on behalf of their employees.
Pensions: The social security law provides for a pension system in which employees make contributions to a pension fund throughout their working lives, and receive a pension upon retirement. Employers are also required to contribute to this system on behalf of their employees.
Disability insurance: The social security law provides for disability insurance that provides financial support to employees who become disabled as a result of a work-related injury or illness.
Maternity benefits: The social security law provides for maternity benefits, including paid maternity leave and protection against discrimination for female employees.
Unemployment benefits: The social security law provides for unemployment benefits for workers who become unemployed through no fault of their own.
The Law Against Discrimination
Under the Colombian Law Against Discrimination all forms of discrimination based on race, ethnicity, gender, sexual orientation, religion, political beliefs, disability, age, are prohibited in the workplace and hiring process.
Highlights of the federal law:
Prohibition of discrimination:The law prohibits discrimination in all areas of public and private life, including employment, education, housing, healthcare, and access to public services.
Obligations of employers: Employers are required to promote diversity and prevent discrimination in the workplace, and to take measures to prevent and address incidents of discrimination.
Penalties for discrimination: The law provides for penalties for acts of discrimination, including fines, damages, and other sanctions.
Protection of victims: The law provides for the protection of victims of discrimination, including measures to prevent retaliation and to provide support and assistance to victims.
Promotion of diversity: The law promotes the recognition and value of diversity in Colombia, and encourages the participation of underrepresented groups in all areas of public and private life.
Employee rights in Colombia
Rights for foreign workers
Foreign workers in Colombia have many of the same rights and protections as Colombian workers under the country's labor laws.
Some basic rights include:
Right to a fair wage
Right to work in safe conditions
Right to join unions
Right to social security
Right to anti-discrimination
Right to work permits
Rights for remote workers
Recently, the Colombian government updated their teleworking legislation to promote and include remote work as a viable option for the workforce.
Law 2121
Law 2121 regulates and specifies the conditions for Colombian citizens who want to work remotely, either from home or a co-working space.
Under Law 2121, general regulations for both employer and employee include:
Both parties must agree to the employee working remotely
Employee contracts can be carried out from the remote location
Consent on any agreement must be through a data protected electronic signature
Use of “One time passwords” are strongly encouraged as authentication
Employee will lose their right to transportation stipends
Employee can work from anywhere; however their location must have stable internet, be agreed upon by both parties, and approved by the Occupational Hazard Administration
Agreements on any documents must by through an electronic signature provided by the employer through secure systems
Remote employees that act as caregivers to minors under 14, relatives with disabilities, or adults over 60 have the right to create a schedule that fits their caretaking needs as long as the employer approves.
Companies are also required to pay for all the operational costs for remote workspaces, including electricity, internet, and water.
All of the above regulations apply to permanent Colombia residents, employers, and foreign companies who hire remote workers in the country.
Equal pay
While Colombia has laws prohibiting gender-based discrimination in employment and promoting equal pay, there is still a significant gender pay gap in the country.
In Colombia, the Labour Code prohibits discrimination based on gender and requires employers to pay equal wages for work of equal value, regardless of gender. Employers who violate these provisions can be subject to fines and other penalties.
Despite these legal protections, there are a number of factors that contribute to the gender pay gap in Colombia, including occupational segregation, where women are often concentrated in lower-paid professions, and the lack of access to education and training opportunities that can lead to higher-paying jobs. In addition, cultural attitudes and gender biases can also contribute to the pay gap.
Recent efforts are being made in Colombia to address the gender pay gap, including initiatives to promote gender equality in education and the workplace, as well as awareness-raising campaigns to challenge gender stereotypes and biases.
Protections against unfair dismissals
Under Colombian law, just cause for dismissal includes reasons such as misconduct, poor performance, and violation of workplace rules and policies.
Termination
An employment contract can be terminated at any time in Colombia, though, it is better to have both parties mutually consent to sever the whole contract, than for the employer to terminate the contract without consent of the employee.
Termination of employment does not make employers legally obligated to pay employees. However, legal ramifications are a looming threat through the Ministry of Labor if the employee is not terminated properly.
To avoid unjustly terminating an employee, remember to carefully consider termination, have evidence and proper documentation, and overall try to have mutual consent between both parties to avoid a lawsuit. If the employee wins in a lawsuit, not only is the employer obligated to pay severance, but they are obligated to cover legal costs.
Severance
In Colombia, severance pay is mandatory and equivalent to 1 month of salary for every year of the employee’s employment. If the employee only worked for a fraction of the year, then the severance is equivalent to the fraction of the year that they worked.
Employers must deposit severance funds into employees accounts no later than February 14th of the following tax year. Severance interest occurs once a year at 1% interest and liquidation of interest must be paid to employees no later than January 31st of the following year of their employment.
Whistleblower rights
Colombia has a legal framework for protecting whistleblowers who report corruption, fraud, and other illegal activities in the workplace or in government agencies.
Under this law, whistleblowers who report illegal activities are protected against retaliation from their employers or colleagues. Retaliation is defined broadly and can include actions such as demotion, transfer, termination, or any other type of reprisal.
In addition, the law provides several mechanisms for whistleblowers to report illegal activities, including confidential channels for reporting to management, internal auditors, or designated government agencies. Whistleblowers are also allowed to report directly to the government or to the media in certain circumstances, such as when there is an imminent danger to public health or safety.
Protection in case of business transfer
Colombia has legal provisions that protect the rights of employees during a business transfer.
These provisions are contained in the Labour Code and apply to all types of business transfers, including mergers, acquisitions, and other types of corporate restructuring.
Under Colombian law, when a business is transferred, the employment contracts of the affected employees are automatically transferred to the new employer, along with all of the rights and obligations under the original contracts.
In addition, the law requires that both the old and new employers inform the employees of the transfer in advance and provide them with information about their rights and obligations under the new employment relationship.
Employees who are affected by a business transfer also have the right to object to the transfer of their employment contract, but they must do so within a certain time frame and in accordance with specific legal procedures. If an employee objects to the transfer, they have the right to terminate their employment contract and receive severance pay.
Unions in Colombia
Unions play an important role in the labor landscape in Colombia, and workers have the right to form and join unions, to bargain collectively with their employers, and to engage in strikes and other forms of collective action.
Colombia's Constitution and Labour Code guarantee the right to form and join unions, and the government has established a legal framework for collective bargaining and labor relations.
Types of leave in Colombia
In Colombia, employees are entitled to various types of leave, including:
Vacation leave: All employees are entitled to a minimum of 15 working days of annual leave per year, which increases with years of service. Employers may grant additional vacation time beyond the minimum requirements.
Sick leave: Employees are entitled to up to 180 days of paid sick leave per year, depending on the length of their employment and the severity of their illness. Sick leave is usually paid directly by the social security system.
Maternity leave: Female employees are entitled to 14 weeks of maternity leave, which can be extended to 18 weeks for certain medical reasons. Maternity leave is paid by the employer, and the government provides reimbursement through the social security system.
Paternity leave: Male employees are entitled to 2 weeks of paternity leave and can be extended up to 5 weeks depending on the circumstances.
Bereavement leave: Employees are entitled to up to 5 days of paid leave in the event of the death of an immediate family member.
Public holidays: There are 18 public holidays in Colombia, and employees are entitled to a paid day off on each of these holidays.
13th-month pay
All employees earn a 13th-month pay, where they are paid for an extra month of salary each year. The employer must pay the first half of the 13th-month pay by the 15th of June and the second half by the 20th of December.
Types of leave in Colombia
In Colombia, employees are entitled to various types of leave, including:
Vacation leave: All employees are entitled to a minimum of 15 working days of annual leave per year, which increases with years of service. Employers may grant additional vacation time beyond the minimum requirements.
Sick leave: Employees are entitled to up to 180 days of paid sick leave per year, depending on the length of their employment and the severity of their illness. Sick leave is usually paid directly by the social security system.
Maternity leave: Female employees are entitled to 14 weeks of maternity leave, which can be extended to 18 weeks for certain medical reasons. Maternity leave is paid by the employer, and the government provides reimbursement through the social security system.
Paternity leave: Male employees are entitled to 2 weeks of paternity leave and can be extended up to 5 weeks depending on the circumstances.
Bereavement leave: Employees are entitled to up to 5 days of paid leave in the event of the death of an immediate family member.
Public holidays: There are 18 public holidays in Colombia, and employees are entitled to a paid day off on each of these holidays.
What HR leaders need to know about Colombia
Companies that want to hire workers and expand in Colombia need to have a solid HR department to help navigate and manage compliance and employee rights.
If you want help with HR without having to set up an entire department, an employer-of-record in Colombia might be your best solution.
Employment contracts
Employment contracts in Colombia are mandatory to ensure an agreement is made between both the employer and the employee.
Employment contracts should be clear and concise and state the agreed upon salary between the employer and employee in Colombian pesos. All contracts should include the probationary period agreed between both parties as well as if the employment will be definite or indefinite. HR departments need to know how to draft strong employment contracts to protect both themselves and employees.
Pay slips
HR is always required to give employees pay slips in order to ensure fair wages in Colombia. The pay slip should specify the hours worked, pay, and any overtime hours.
Why companies partner with Via
As a global EOR provider, Via makes hiring Colombian talent and building your global team seamless. Instead of having to learn every specific nuance in every province, you can focus on finding the talent that fits your company. Whether you need to hire remote workers or independent contractors in Colombia, we support you throughout the entire process. Via helps you manage local HR processes for direct employment such as work visas & permits, benefits, payroll, background checks, and more. Our team of local labor lawyers and on-the-ground experts ensure that your company remains compliant while expanding abroad. As your employer-of-record/entity in Colombia, Via assumes responsibility for employment liability, so that you can focus on what matters: recruiting and managing your team.
