Types of Employment Contracts in Colombia

Surprising fact: nearly one in three disputes about work in this country trace back to unclear or missing written terms.

We open with the basics so you can act with clarity. The Substantive Labor Code defines an employment contract in Art. 22 as personal service rendered under subordination for remuneration. Article 23 sets three core elements: personal service, subordination, and salary.

Article 37 allows verbal or written forms, but written terms become mandatory in specific cases. Law 50 of 1990 and later rules shape the available types, duration models, benefits, and termination mechanics.

We focus on practical steps: how to identify the right type, what clauses to include, and when written documentation prevents automatic renewals or unwanted permanence. That reduces disputes, aligns budgets for severance, service premium, vacations, and clarifies employer contributions.

Key Takeaways

• Three legal elements show whether a relationship is truly an employment contract.
• Written form is required in key situations to avoid automatic renewals.
• Choosing the right type affects duration, salary, benefits, and termination costs.
• Clear clauses cut litigation risk and set expectations for both parties.
• We map common pitfalls and how to fix them early.
• Later sections provide templates and clause checklists for compliance.

How we approach employment contracts in Colombia today

We pair practical HR steps with clear legal design to reduce risk and make onboarding predictable.

Our process starts by mapping business goals to the right employment structure. We clarify the employer–employee relationship and pick the contract type that fits your timeline and role.

We collect facts on scope, location, schedule, and pay. Then we draft tailored clauses that reflect local labor norms and internal policies. We also define employer obligations clearly—benefits, social security registration, and reporting lines.

• Probation period strategy with documented evaluation and notice.
• Age checks and guidance when hiring minors and securing Ministry authorization.
• Version control, internal handoffs, and an onboarding checklist so teams follow the same steps.

Fairness and clarity are built in: performance standards, due process, and transparent pay reduce disputes and help employees perform.

Step	Owner	Output
Role intake	Recruiting	Accurate job data
Draft and review	HR & Legal	Final written contract
Enrollment	Payroll	Social security registration

Understanding what an employment contract is under Colombian law

We apply a focused legal test to determine when a work relationship triggers labor protections.

Three essential elements

Article 22 defines the employment contract as a personal service rendered under subordination for remuneration.

Article 23 lists the three elements we check: personal service, continued subordination, and salary.

If these three appear, the relationship is presumed to be an employment contract even if the parties intended otherwise.

Verbal vs. written form and key requirements

Article 37 allows verbal or written agreements, but fixed-term arrangements must be in writing. We advise written form for clarity and proof.

Correctly identifying the parties, their domicile and legal capacity on the execution date supports enforceability and jurisdiction.

Element	What to look for	Why it matters
Personal service	Task performed personally by the worker	Triggers salary and benefits
Subordination	Schedules, reporting lines, supervision	Distinguishes hire from independent work
Remuneration	Fixed or variable pay, payment method	Defines salary base for contributions

Documentation standards we use include signatures, annexes for duties, and dated records of start and scope. These reduce the risk of retroactive recognition and liabilities for unpaid benefits.

We build compliance checklists tied to the law and internal policies so employers and employees know rights, duties, and proof needed if a dispute arises.

Choosing the right type of contract for your team

We prioritize the contract type that best reflects the role’s purpose, hours, and permanence. Picking the right option reduces risk and sets clear expectations for pay, benefits, and termination.

Indefinite-term

Use an indefinite-term when the role has no natural end. Article 47 CST applies. Termination without just cause triggers statutory severance. This option gives stability to the employee and predictable costs for the employer.

Fixed-term

Fixed-term agreements must be written and may last up to three years. They are indefinitely renewable. If the initial term is less one year, the first three renewals can be equal or shorter; from the fourth renewal, extensions must be at least one year. For terms over one month, a 30-day non-renewal notice avoids automatic extension (Art. 46 CST).

Specific work, occasional, and apprenticeship

Specific work contracts end when the agreed upon scope finishes. Early termination without cause requires paying the remaining period, but at least 15 days.

Occasional or transitory work covers non-core tasks up to one month (Art. 45 CST). We avoid repeats that could reclassify the role.

After Law 2466 of 2025, the Apprenticeship Contract is a special fixed-term option with full rights, social security, unionization, and a maximum of three years.

• Practical tip: document duration and renewals clearly to prevent unintended permanence.
• We help: align contract choice with hours and workload to avoid misclassification.

employment contracts colombia: the essential clauses we include

We capture the essentials—who, where, what, how long, and how much—in every document.

Identifying the parties and domicile: We record full legal names, IDs or NIT, and domiciles to set jurisdiction and notice addresses. This prevents later disputes about who is bound by the agreement.

Place and date of execution: We state the place and the exact date the parties signed so the effective moment is clear for rights and obligations.

Workplace and mobility expectations: We define fixed, hybrid, or mobile locations and include travel rules and allowances. Changes to the work site require formal notice to avoid claims.

Nature of work and scope: We list core duties, reporting lines, and how material changes will be handled to protect both the employee and the employer from constructive dismissal claims.

Salary, payment frequency, and in-kind rules: We set the wage and pay method (bank transfer or check), state pay periods, and cap in-kind benefits so they do not exceed legal limits.

Duration and renewal mechanics: We document fixed or indefinite duration, renewal rules, and calendars so HR meets any 30-day non-renewal notice for fixed terms.

Benefits and social security: We record who registers the worker with EPS, pension, and ARL and who handles contributions to avoid missed payments.

Termination and dispute resolution: We list lawful grounds for termination, required process, and evidence to keep. We also add confidentiality, IP, and data privacy clauses to secure company assets.

Clause	Purpose	Key data	Owner
Parties & domicile	Establish jurisdiction	Names, IDs, addresses	HR/Legal
Place & date	Fix effective date	City, date signed	HR
Salary & pay	Define compensation	Amount, frequency, method	Payroll
Termination	Set process and grounds	List causes, notice steps	Legal

Setting a compliant probationary period

Setting a compliant trial phase helps managers evaluate fit without creating unintended permanence. We document start and end dates clearly so the legal caps are never exceeded.

Indefinite-term roles

Up to two months. For indefinite contracts the probation period generally cannot exceed two months under applicable law. During this time, either party may end the relationship without liability, subject to formal notice and final pay procedures.

Fixed-term roles

One-fifth of the duration, capped at two months. For fixed contracts we set probation as one-fifth of the total duration but never more than two months. Managers must decide early and document performance metrics while the window remains open.

We apply practical rules:

• Calibrate the probation to the role’s complexity and the contract duration.
• Record probation dates in the HR system to avoid accidental overruns.
• The employer must provide onboarding and training during the trial.
• Termination during probation follows basic due process and written notice.

Type	Max probation	Key step
Indefinite	2 months	Document metrics & notice
Fixed-term	1/5 of duration (≤2 months)	Decide before window closes
All	—	Register social security from day one

We ensure the probation process supports fair assessment and clear next steps for ongoing work or compliant termination of the employment contract.

Wages, benefits, and social security we must account for

Properly classifying compensation items protects both payroll and legal compliance. We begin by distinguishing what counts as salary and what does not.

Salary includes cash and in‑kind payments given as direct consideration under Art. 127. That covers bonuses, overtime, and commissions. Non-salary items under Art. 128 include occasional gratuities, representation expenses, company transport, and work tools.

Salary types and integral salary thresholds

Salaries may be time-based, piecework, or task rates (Art. 132). We document the form and any variable components clearly.

We set an integral salary only when the ordinary pay exceeds ten minimum wage and the written agreement adds a benefit factor ≥30%. The minimum integral package must equal at least 13 SMMLV.

Mandatory social benefits and calendars

We calendar all key dates:

• Severance: accrues to Dec 31; employer deposits by Feb 15.
• Interest on severance: 12% annual paid yearly.
• Service premium: 30 days per year, paid in June and December.
• Endowment: every four months for workers earning up to 2 SMMLV with ≥3 months’ service.
• Vacations: 15 paid days per year.

Affiliation to the social security system

We register every employee with EPS, pension, and ARL from day one. The employer chooses the ARL; the worker selects EPS and pension fund.

Item	Who	Timing
Severance deposit	Employer	By Feb 15 (annual)
Service premium	Employer	June & December
Endowment	Employer	Every 4 months

We classify each payment at drafting to set the base for contributions and benefit calculations. This helps payroll exclude non-salary items where law permits and keeps total compensation transparent for both employers and employees.

Working hours, overtime, and rest: staying within legal limits

Our approach aligns shift design with the stepped reduction in weekly hours under Law 2101. We keep schedules compliant while preserving the same salary and benefits established by the statute.

Weekly hours and the step-down: the cap moved from 48 toward 42 hours between 2023 and 2026. As of July 15, 2023, the legal maximum is 47 hours per week. We plan rosters to meet current limits and phase reductions without cutting pay.

Overtime caps and surcharges

Overtime cannot exceed two hours per day or 12 per week. We require prior approval and record each extra hour to control costs and prove compliance.

• Surcharges: 35% night premium (9:00 p.m.–6:00 a.m.).
• Daytime overtime paid at 125% of the hourly rate; night overtime at 175%.
• Sundays and holidays carry higher premiums (e.g., daytime 175%).

Practical steps: flag exempt roles (above 10 SMMLV or trust positions) in the job description, align remote schedules with the right to disconnect, and train payroll to calculate hourly pay using minimum wage references.

Topic	Rule	Action
Weekly cap	47 hrs (since Jul 15, 2023)	Roster planning
Daily overtime	≤2 hrs	Approval workflow
Night premium	+35%	Payroll rule

Ending the employment relationship the right way

Ending a work relationship needs a clear, fair process to limit legal risk and preserve trust. We follow a firm, step-by-step method so managers and finance can act with certainty.

Termination with just cause: due process and documentation

For dismissal for cause we invoke statutory grounds (e.g., Article 62 CST). We gather evidence, notify the worker, and hold an audiencia de descargos.

After the hearing we issue a reasoned written decision and keep all records to meet labor review standards.

Termination without cause: indemnity rules

When termination without cause occurs, we calculate indemnities by contract type and salary band so finance can forecast costs.

Type	Salary band	Indemnity rule	Minimum/Note
Indefinite-term	<10 SMMLV	30 days for 1st year; 20 days per additional year or fraction	Prorated by year
Indefinite-term	≥10 SMMLV	20 days for 1st year; 15 days per additional year or fraction	Prorated by year
Fixed-term	All bands	Indemnify remaining term	Minimum 15 days
Specific work	All bands	Pay remaining agreed time	Minimum 15 days if ended early

Resignation and indirect dismissal: protecting rights

We document resignations and final pay items: accrued salary, benefits, vacation, and severance deposits or liquidations.

We screen for indirect dismissal claims when employer breaches could trigger indemnity or reinstatement. We also coordinate asset returns, access revocation, and data protection before the last day.

Practical steps: respect protected statuses, issue employment certificates on time, and retain process records to defend any challenge.

Remote work, telecommuting, and mandatory policies we implement

We build remote work frameworks that balance flexibility with legal duties. Law 2121 requires the employer must supply tools, cover certain costs, and ensure occupational health and safety for remote staff. Además, es fundamental que las empresas se mantengan al tanto de las tendencias laborales en Colombia, que están en constante evolución. Esto implica adaptarse a nuevas modalidades de trabajo y mejorar las condiciones laborales para atraer y retener talento. En este contexto, la implementación de políticas efectivas de trabajo remoto es crucial para el éxito organizacional.

Providing tools, covering costs, and ensuring health and safety

We draft a remote work annex listing devices, internet or utility support, and ergonomic duties. We register remote workers with the ARL and verify that home workspaces meet risk standards.

Right to disconnect and data privacy requirements

We add clear right-to-disconnect clauses that fix reachable hours and rest periods. We also include data privacy rules, incident response, device ownership, and return procedures to protect personal data and corporate systems.

Internal regulations and other mandatory workplace policies

We assess headcount to determine RIT and health-and-safety manuals. We update biosafety protocols (Resolution 692 of 2022) and draft telecommuting policies whenever remote work exists.

Policy	When required	Key action
Remote annex	Any remote arrangement	List tools, costs, ARL registration
RIT / Safety manual	Commercial >5; Industrial >10	Implement on schedule, document training
Road safety plan	Fleet >10 vehicles	Training, monitoring, incident procedures

Avoiding misclassification: when an independent contractor becomes an employee

Practical checks help us spot when a freelance engagement has the trappings of an employee link. We test control, place, and pay to preserve autonomy and reduce legal exposure.

No subordination: autonomy in execution

We verify independence by confirming the party decides how and when tasks are done. Companies may review deliverables, but they must not dictate daily methods or schedules.

No fixed workplace or hours: flexibility preserved

We avoid fixed locations and strict attendance rules. No shift assignments or clock-in systems that mirror staff oversight.

No fixed salary: invoicing and tax responsibilities

Compensation should be invoiced per deliverable or milestone. Each provider handles taxes; the payer should not treat fees as payroll.

Practical steps we follow:

• Test the relationship for subordination indicators; control usually signals a reclassification risk.
• Keep scopes narrow and document SOWs, change orders, and acceptance records.
• Train managers to avoid daily task assignment and shared toolchains that imply employer control.
• Audit repeat renewals and long engagements to confirm independent status and plan conversion paths when needed.

Risk area	Safe practice	Outcome
Control	Review deliverables only	Preserve autonomy
Place & hours	No fixed schedule	Lower reclassification risk
Pay	Invoice-based	Clear tax treatment

Putting it all together so employers and employees move forward with confidence

We finish by translating statutory detail into a simple implementation plan for teams. We bring together the main types employment contracts colombia and the essential clauses so every party knows the scope, duration, and key dates. Además, es fundamental que las empresas cumplan con los requisitos laborales en Colombia para evitar sanciones y garantizar un ambiente de trabajo saludable. Esto incluye la correcta clasificación de los contratos y la inclusión de beneficios laborales que protejan tanto a los empleados como a la empresa. Con un plan de implementación claro, aseguramos que todos los involucrados comprendan sus derechos y obligaciones desde el inicio de la relación laboral. Además, es fundamental que las empresas comprendan las implicaciones de los impuestos sobre nómina en Colombia, ya que esto afecta tanto a los costos operativos como a la planificación financiera. Asimismo, garantizamos que todos los contratos cumplan con la normativa vigente para evitar sanciones y asegurar una relación laboral transparente y justa. Con nuestra guía, las organizaciones pueden enfocarse en su crecimiento mientras nosotros nos ocupamos de los detalles legales.

We help employers and employees align pay, benefits, and social security enrollment on the same calendar. That reduces missed filings and avoids costly retroactive liabilities.

Our process sets clear steps: draft, review, sign, enroll, and audit. We model termination costs by cause and duration, check minimum wage effects on salary and compensation, and flag reclassification risks before they become disputes.

Finally, we update templates as labor rules change so your team remains compliant and secure.