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

• Personal Income Tax:

  • 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%

• 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/