Foreign companies planning to initiate operations in Bogota and employ a workforce must take into consideration the types of employment contracts governed by the Colombian labor regime.
These contracts include:
Fixed-Term
- The parties agree on a specific and limited duration.
- Maximum duration: 3 years.
- It can be renewed when the parties wish to do so.
Indefinite-Term
- It has an initial date but no end date.
- It includes a trial period of up to 2 months.
For a Specific Task or Project
- It is agreed upon to carry out a specific task.
- It ends when that task is completed.
Service Provision
- There is no employment relationship or subordination.
- Its duration is determined by the contracted services agreement.
- It does not include a probationary period.
- It does not impose an obligation on the contractor to provide social benefits.
What are the obligations of every employing company in Colombia?
- Monthly remuneration (salary).
- Necessary work tools for carrying out tasks.
- Payment of social security contributions (health, pension, and
- workplace hazards).
- Social benefits (service bonus*, severance pay, and severance pay
- interest).
- Paid time off (vacation and Sunday rest).
- Provision of dress and footwear**.
- Incapacity (common or work-related origin).
- Transportation aid.
- Surcharges for overtime.
* Does not apply to employees that earn more than ten (10) times the current MLMW (i.e., Integral Salary).
** Employees entitled to this benefit are those who earn up to the equivalent of two times the MLMW and that have been employed for at least three months.
Bogota has a reference document for investors at all stages of their investment: Bogota’s Foreign Investment Guide. Download it here.
