Employment in Bogota: What are the types of employment contracts?

Fecha: 15 December, 2023

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.

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