Bogota Foreign Investment Guide
09. Labor System
What is inside?
Preliminary stage
- Migratory Regime
- International Investment Agreements & Trade Treaties
- Foreign Investment Incentives
- Foreign Investment & Currency Exchange Regime
- Business Creation
- Tax Regime
- Intellectual Property
Investment stage
- Financial Regime
- Labor System
- Real Estate Acquisition and Leasing
- Customs Regime and Free Trade Treaties
On operation
- Public Procurement Regime
- Mergers and Acquisitions (M&A) Processes
- Competition Regime
- Environmental Regime
- Green Investments
- Investment in Dynamic Ventures
- Cross-Border e-Commerce
- Conflict Resolution Mechanisms
Business close stage

In Colombia, there is no federal system, and for that reason, labor laws are applied throughout the entire national territory. On one hand, there are specific rules governing the relationships of certain public employees; on the other hand, the Substantive Labour Code (CST) regulates labor relations in the private sector and is divided into individual and collective regimes.
The individual regime outlines the various types of employment contracts that define the relationship between worker and employer. In this chapter, you will find a classification of these contracts:
- According to how they are concluded: verbal or written.
- According to their duration: fixed term, indefinite term, for a specific project or task, and occasional.
From this, all the information related to labor obligations is derived: the remuneration or salary that workers receive; the social benefits that the employer must pay (severance pay, interest on severance, service bonuses, among others); the types of work shifts currently in effect in Colombia; licenses; and contributions to social security.
Collective rights pertain to the relationships between employers and labor organizations, that is, employee unions. This is significant when determining special conditions for union members, who cannot be dismissed without the intervention of a labor judge. It is also important in negotiating labor conditions through collective bargaining with union associations.
To delve deeper into the information provided, as well as to learn about other aspects of the labor regime in Colombia, we invite you to download and consult the complete chapter.