Colombia
Capital: Bogota
Currency: Colombian Peso- COP
Colombia Labor Law and Employment Policy Overview
Employment Law Overview
- Key Legislation:
- Labor Code (Código Sustantivo del Trabajo)
- Social Security Law (Ley de Seguridad Social)
- Occupational Health and Safety Law (Ley de Riesgos Laborales)
- Legal Characteristics:
- Aims to protect employee rights and benefits
- Sets out requirements for employment contracts, working hours, vacations, severance pay, and social security
Employment Contract Requirements
- Contract Types:
- Indefinite-term contracts
- Fixed-term contracts (maximum three years)
- Task-specific contracts (no defined term, ends upon completion of task)
- Temporary employment contracts (less than one month)
- Contract Terms:
- Must include job description, salary, working hours, vacations, etc.
- Language and Currency:
- Contracts must be in Spanish
- Currency is the Colombian peso (COP)
Working Hours Regulations
- Standard Working Hours:
- 48 hours per week (gradually reducing to 42 hours per week by July 15, 2026)
- Rest Days and Breaks:
- Minimum of one rest day per week
- Minimum of one hour break after each day's work
Vacation Policy
- Annual Leave:
- 15 days per year, after one year of service
- Public Holidays:
- 18 statutory public holidays
- Special Leaves:
- Sick leave: Paid sick leave from the third day of illness
- Maternity leave: 18 weeks of paid maternity leave (two weeks before birth, 16 weeks after birth)
- Paternity leave: Two weeks of paid paternity leave
Employee Severance and Contract Termination
- Notice Period:
- Indefinite-term contracts: 15 days
- Fixed-term contracts: 30 days
- Severance Pay:
- Income less than 10 times the minimum wage: 30 days' salary for each year worked
- Income more than 10 times the minimum wage: 20 days' salary for each year worked
- Protection Against Unfair Dismissal:
- Employer must prove just cause for dismissal
- Employees can file a complaint with the labor court
Tax Laws
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Personal Income Tax:
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Salary Range (COP) - Annual Gross Income Tax Rate 0 - 38,812,000 0% 38,812,000 - 60,532,000 19% 60,532,000 - 145,989,000 28% 145,989,000 - 308,713,000 33% 308,713,000 - 675,465,000 35% 675,465,000 - 1,103,817,000 37% 1,103,817,000+ 39%
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Social Security Contributions:
- Employee: 8.5%
- Employer: 21.02%
Health Insurance
- Insurance Policy:
- Employees must participate in the social healthcare system
- Insurance Coverage:
- Basic medical services, hospitalization, medication, etc.
Compensation and Benefits
- Minimum Wage:
- COP 1,160,000 per month
- Salary Structure:
- Base salary, bonuses, allowances, etc.
Work Permits and Visas
- Permit Requirements:
- Foreigners require a work permit or visa
- Application Process:
- Contact the Colombian Immigration Office
Confidentiality and Non-Compete Clauses
- Enforceability:
- Confidentiality and non-compete clauses are enforceable in Colombia
- Common Provisions:
- Confidential information, intellectual property, client lists, etc.
Training and Development
- Legal Requirements:
- Employers must provide safety training and skills development training
- Government Support:
- Government provides training grants and programs
Workplace Diversity and Inclusion
- Legal Requirements:
- Prohibits discrimination based on race, gender, religion, etc.
- Enforcement Measures:
- Employers must establish anti-discrimination policies and procedures
Remote Work Policy
- Legal Framework:
- Remote work is legal in Colombia
- Tax and Insurance Implications:
- Remote work may impact tax and social security contributions
Authoritative Website Addresses
- Colombian Ministry of Labor: https://www.mintrabajo.gov.co/