Surprising fact: over 90% of employment protections in this country are non-waivable, meaning employers cannot contract around them.
We open by explaining how the Political Constitution, ILO conventions and the Labor Code form the backbone of employment relations here. These sources set mandatory rules that protect employees and shape how we hire, pay, and manage teams.
As companies expand into Colombia, we must treat local hiring and third‑party arrangements as triggers for full compliance. The Ministry of Labor and the labor inspectorate can request proof of adherence, so our policies should reflect national standards from day one. Además, es fundamental que el personal encargado de recursos humanos esté bien informado sobre las reglas de terminación laboral en Colombia, ya que el incumplimiento puede generar sanciones significativas. Asimismo, debemos garantizar que todos los contratos y acuerdos laborales sean revisados periódicamente para asegurar su conformidad con la legislación vigente. Esto nos permitirá no solo evitar problemas legales, sino también fomentar un ambiente de trabajo justo y respetuoso para todos nuestros empleados. Además, es crucial estar informados sobre las regulaciones de propiedad extranjera en Colombia, ya que estas pueden influir en las decisiones de contratación y en la estructura de la empresa. Ignorar estas regulaciones podría resultar en sanciones significativas y afectar la reputación de la organización. Por lo tanto, una integración adecuada de estas normativas en nuestros procesos garantizará una operación fluida y conforme a la ley.
In this Ultimate Guide we preview contracts, wages, working hours, benefits, and termination procedures, and explain how social security and payroll must align with these rules. Staying current with reforms protects our employees and our operations.
Key Takeaways
- Employee rights are grounded in the Constitution, ILO norms, and the Labor Code.
- Protections are public policy and cannot be waived by private agreement.
- Foreign employers must comply whether hiring directly or via third parties.
- Payroll, benefits, and social security are tightly integrated with compliance duties.
- Track regulatory reforms and design internal processes that respect worker rights.
How Colombia’s labor framework works today
Our review sets out the legal hierarchy that governs work, plus the practical effects of the 2025 reform.
Core sources and reform landscape
We rely on the Constitution, ILO conventions, the Labor Code, and implementing regulations to define conditions and procedures. Law 2466 of 2025 introduced changes aimed at decent and dignified work and may change implementing decrees.
Non‑waivable rights and public policy
Labor standards are public policy. The parties cannot agree terms that remove statutory protections and employees may not renounce core rights. Employers can offer better benefits, but they cannot undercut mandatory safeguards.
Who must comply
Local entities, foreign employers hiring in the country, and companies using contractors or subcontractors must follow these rules. The Ministry of Labor’s inspectorate handles inspections, complaints, and requests for Safety and Health at Work Management System documentation. Además, todos los empleadores deben asegurarse de que el proceso de contratación de extranjeros cumpla con las normativas vigentes para evitar sanciones. Es fundamental que las empresas mantengan una comunicación fluida con la inspección del Ministerio de Trabajo para garantizar el cumplimiento de las normativas de seguridad y salud en el trabajo. El seguimiento adecuado de estos lineamientos no solo protege a los trabajadores, sino que también promueve un ambiente laboral más seguro y eficiente.
Practical tip: we recommend audits, clear classification of contractors, and HR training to document compliance and reduce enforcement risk.
Employment contracts and hiring rules foreign employers must know
Contract selection directly affects whether a role is treated as employment or independent services. We must choose the right form when hiring to limit risk and secure benefits for employees.
Indefinite‑term contracts and fixed‑term contracts
Indefinite‑term contracts have no set end date and suit ongoing roles. They usually carry stronger protections and steady benefit accrual.
Fixed‑term contracts suit projects or defined durations. We must state the specific term, renewal rules, and give advance notice at the end to avoid automatic extension.
Mandatory terms, dependence, and data protection
Article 23 requires three essentials in every employment contract: the activity or work to be performed, the compensation, and the employee’s dependence on the employer.
Contracts must identify the parties, role, location or remote setup, pay components, hours, probation, and termination rules. We separate salary from non‑salary payments to set the social security base.
Data protection matters at hiring and during employment. We use data processing agreements and privacy notices so employees’ personal data is handled lawfully.
- Localize templates to avoid misclassification.
- Include IP, confidentiality, and fair disciplinary rules.
Wages, salary structure, and minimums in practice
Understanding how wages and payroll items are classified helps us avoid costly missteps. We must separate what counts as salary from other payments so we calculate benefits and taxes correctly.
Minimums, allowances, and pay frequency
The statutory minimum wage is set yearly. A transport allowance typically applies for employees earning up to two times the minimum wage.
Monthly salaries must be paid at least monthly; daily-paid workers require at least weekly payments.
Salary vs. non-salary and contribution base
Salary includes fixed pay and retribution for services like commissions, habitual bonuses, and overtime. Only salary items form the base for social security and statutory benefits.
Non-salary payments can be recognized, but they generally may not exceed 40% of total compensation for contribution purposes.
Integrated salary rules
We may agree an integrated salary for workers earning at least ten times the minimum wage. The agreement must be written and adds a 30% factor that covers most premiums, except vacations.
Practical tip: document incentive plans, confirm currency payment rules, and update payroll to reflect current minimums and contributions to avoid disputes and plan cash flow for the Prima de Servicios.
Working time, starting July reductions, and overtime pay
We outline how phased caps reduce the weekly maximum without lowering pay and what that means for scheduling under the current law.
Phased weekly hours and scheduling options
Law 2101 of 2021 reduces the week in stages: 48 hours until July 14, 2023, then 46 (from July 15, 2024), 44 (from July 15, 2025) and 42 (from July 15, 2026).
Daily time can range from 4 to 9 hours so long as the weekly cap is respected. Rest periods within the day do not count as working times, and a weekly rest day is typically Sunday.
Overtime, night work and public holiday premiums
Overtime is paid at a 25% premium. Night work (9:00 p.m.–6:00 a.m.) adds 35%, and work on Sundays or public holidays gets 75% extra.
Note: integrated salary employees and many trust positions are generally excluded from overtime, though trust roles may get night or Sunday premiums.
- Action items: implement reliable timekeeping and configure payroll to apply premiums automatically.
- Communicate each July phase to employees and train managers to authorize and document overtime.
- Reconcile time reports monthly so rosters, premiums, and caps remain compliant.
Employee benefits and social security contributions
We must enroll every new hire in the national social security system and budget the monthly contributions tied to salary. Enrollment covers pension, health under the SGSSS, and occupational risk insurance. Employers are responsible for registrations and for ensuring timely monthly remittances.
Pensions, health, and professional risks enrollment
All employees join a pension fund, the SGSSS for health, and an occupational risk insurer. Some foreign assignees may qualify for voluntary affiliation; we should confirm eligibility case by case.
Employer versus employee contribution responsibilities
Contributions are calculated on the salary base. We separate salary from non‑salary payments so contribution calculations remain accurate and to control costs.
- Typical split: example total ~28.5% — roughly 20.5% employer and 8% employee; verify current rates and ceilings before payroll runs.
- Maintain a compliance calendar for due dates, audits, and reconciliations to avoid surcharges.
- Review payroll and HRIS integrations to validate remittance files against law and rates.
Prima de Servicios and other statutory benefits
Prima de Servicios accrues monthly and is usually paid in two installments: midyear and December. We must budget and communicate the schedule clearly to employees.
Lower‑paid workers may also receive a transport allowance that affects take‑home pay but not all contribution bases. Document enrollment acknowledgments and show employer versus employee shares on payslips.
Paid leave, public holidays, and special statutory leaves
This section explains the main paid leave entitlements and how they intersect with payroll and health coverage.
Annual vacation entitlement and carryover
Employees accrue 15 days of paid vacation per year. We recommend clear accrual tables and written policies that state carryover limits and pay conversion at separation.
Public holidays and operational planning
Major public holidays include New Year’s Day, May 1, July 20, and December 25. Build an annual calendar to plan staffing, overtime, and holiday premium implications.
Sick, maternity, paternity and other leaves
Sick leave may extend up to 180 days. The first 90 days are generally paid at two‑thirds of the wage; later days are often 50%, coordinated with social security. Work‑related illness or injury can require full pay and insurer coordination.
Maternity is 18 weeks, paternity 14 days, and adoption six weeks. Compassionate leave is five days; voting leave is a half‑day with certification. We document requests and integrate approvals into absence workflows.
- Controls: track balances in HR systems, require medical or legal documentation, and audit for equity.
- Advice: forecast coverage around school calendars and peak times to protect service levels and rights.
Workplace health, safety, and employer obligations
We must prioritize practical safety systems that prevent accidents and support healthy workplaces for all staff and contractors. Our obligations require a documented Safety and Health at Work Management System (SG-SST) that matches our risks and activities.
SG‑SST requirements and core elements
Employers must implement an SG-SST covering employees, contractors, and subcontractors. Key elements include hazard ID, risk assessment, training, PPE, incident reporting, and medical surveillance.
- Hazard identification and risk controls tailored to each site.
- Training programs and recorded drills for staff and contractors.
- Documented incident investigations and corrective actions.
| SG-SST Element | What inspectors request | Contractor checks |
|---|---|---|
| Risk Assessments | Written records and recent revisions | Proof of equivalent assessment |
| Training & Drills | Attendance lists and drill reports | Certificates or training logs |
| Incident Reports | Investigation files and corrective actions | Notification procedure and evidence |
Inspections, complaints, and anti‑retaliation safeguards
The Ministry inspectorate can visit, review SG‑SST files, and receive anonymous complaints. We should keep an audit‑ready folder with policies, risk maps, payroll for medical surveillance, and contractor agreements.
There is no special shield solely for H&S complainants, but our workplace harassment policy protects against discriminatory acts after a complaint. We recommend appointing H&S roles, running regular audits, and requiring contractor compliance before site access to keep workers safe and secure our operations.
Termination, notice, and severance under colombian labor laws
Terminating a role requires careful timing, clear notice, and precise calculations so we limit exposure and comply with local requirements.
Probation and early exits
For indefinite contracts the probation period is capped at two months. For fixed-term contracts probation may not exceed one-fifth of the contract period and never more than two months.
During probation either party may end the contract without prior notice, though wrongful dismissals can trigger damages. We document assessments and onboarding to support lawful decisions.
Notice types and performance terminations
Performance-based terminations require 15 days’ prior written notice. For fixed-term contracts, employers must give 30 days’ written notice before the agreed end date to avoid unintended renewal.
We maintain improvement plans and evidence so performance processes meet procedural standards and reduce dispute risk.
Severance: calculation and timing
Employees earning less than 10x the minimum wage receive 30 days’ pay for the first year and 20 days for each subsequent year. For those earning more than 10x, severance is 20 days for year one and 15 days per additional year.
Partial years are prorated. We align payroll, accrued vacation, and proportional Prima de Services so final payments and certificates issue on time.
- Practical steps: use calendars for 30-day notices, keep exit checklists, require legal review for sensitive cases, and preserve records for inspections or disputes.
Putting compliance into action for foreign employers in Colombia
To operationalize compliance, we focus on practical steps that turn rules into repeatable processes.
First, localize employment contracts to reflect Article 23 elements and minimum wage checks. Configure payroll to separate salary from non‑salary items and set up flows for social security contributions and other employer/employee contributions. Además, es fundamental revisar los tipos de contratos laborales en Colombia para asegurar que se adapten a las necesidades de la empresa y cumplan con la normativa vigente. Esto incluye considerar contratos a término fijo, indefinido, y de obra, entre otros. La correcta clasificación de los contratos facilitará la gestión de beneficios y derechos de los empleados, así como el cumplimiento de obligaciones tributarias.
Next, map the phased hours (starting July) into rosters and timekeeping so overtime, night work and Sunday premiums calculate correctly. Stand up the SG‑SST, enroll employees in pension, health (SGSSS) and professional risks from day one, and calendar Prima de Servicios payments.
Finally, train managers on hiring, probation, notices and performance records, run annual policy reviews under Law 2466 of 2025, and escalate complex cases to local counsel to protect workers and our operations in the country. Es fundamental que todos los gerentes comprendan a fondo los aspectos legales de la contratación en Colombia para asegurar el cumplimiento normativo. Además, se debe fomentar una cultura organizacional que valore la transparencia y la comunicación abierta respecto a estas políticas. Esto ayudará a minimizar riesgos legales y a promover un ambiente de trabajo más seguro y justo para todos los empleados. Es crucial que los gerentes también se familiaricen con los requisitos para registrar empleados, ya que esto es un paso esencial para garantizar la legalidad de las contrataciones. Además, la capacitación regular sobre estas normativas permitirá a los gerentes tomar decisiones informadas y responsables. Un enfoque proactivo en estos aspectos no solo protege a la empresa de posibles sanciones, sino que también construye la confianza de los empleados en la organización.
