Employer of Record Guide in 

Colombia

Vacation Leave

• Entitlement: 15 working days per year after 1 year of service
• Accrual: Proportional from start date
• Compensation: Paid at regular salary rate
• Payout: Must be paid if unused upon termination

Sick Leave

• Paid Leave: First 2 days paid by employer at 100%
• EPS Coverage: From day 3 onwards, paid by health system at 66.67% of salary
• Duration: Up to 180 days, extendable to 540 days in severe cases
• Medical Certification: Required from day 3

Maternity Leave

• Duration: 18 weeks (126 days)
• Payment: 100% of salary paid by EPS (health system)
• Flexibility: Can take up to 2 weeks before due date
• Job Protection: Position guaranteed upon return

Paternity Leave

• Duration: 2 weeks (14 calendar days)
• Payment: 100% of salary paid by EPS
• Timing: Must be taken within 30 days of birth
• Eligibility: Must be registered in social security system

Bereavement Leave

• Duration: 5 working days
• Payment: Paid by employer
• Qualifying Events: Death of spouse, children, parents, or siblings
• Documentation: Death certificate required

Calamity Leave

• Duration: Up to 5 days (case-by-case basis)
• Payment: Unpaid unless company policy provides otherwise
• Qualifying Events: Natural disasters, serious family emergencies
• Approval: Requires employer approval and documentation

Summary

Termination Types

Termination With Just Cause (Con Justa Causa):

• No severance required
• Must involve serious misconduct as defined by Colombian Labour Code
• Requires proper documentation and due process

Termination Without Just Cause (Sin Justa Causa):

• Requires severance payment
• Most common form of termination
• Subject to notice requirements

Notice Period Requirements

Indefinite Term Contracts:

• Less than 1 year: 30 days written notice
• 1 year or more: 30 days written notice

Fixed-Term Contracts:

• No notice required if contract expires naturally
• Early termination requires severance payment

Severance Pay (Indemnización)

Indefinite Term Contracts:

• Less than 1 year: 30 days salary
• 1 year or more: 30 days salary per year worked

Fixed-Term Contracts:

• Amount equal to remaining salary until contract end
• Minimum 30 days salary

Mandatory Final Payments

Upon termination, employers must pay:

• Cesantías: Accumulated severance fund
• Interest on Cesantías: 12% annual interest
• Unused Vacation: Proportional payment
• Prima de Servicios: Proportional bonus
• Final Salary: Including any overtime or bonuses

Final Pay Timeline

All final payments must be made within 30 days of termination date.

Collective Dismissals

Dismissing 10 or more employees within 30 days requires:

• Prior authorization from Ministry of Labour
• Justification of economic necessity
• Compliance with specific procedures

National Public Holidays

Colombia observes 18 public holidays annually, including both fixed and moveable dates.

Fixed Holidays:

Moveable Holidays (Moved to Monday):

• Epiphany (January 6)
• Saint Joseph's Day (March 19)
• Maundy Thursday (varies)
• Good Friday (varies)
• Ascension Day (varies)
• Corpus Christi (varies)
• Sacred Heart (varies)
• Saint Peter and Saint Paul (June 29)
• Assumption of Mary (August 15)
• Columbus Day (October 12)
• All Saints' Day (November 1)
• Independence of Cartagena (November 11)

Holiday Pay Rules

Working on Holidays:

• Regular pay: 100% of daily salary
• Holiday premium: Additional 75% of daily salary
• Total: 175% of regular daily salary

Holiday Entitlement:

• All employees entitled to paid holidays
• No minimum service requirement
• Proportional payment for part-time employees

Required Documentation

Employment Contract:

• Must be in writing for contracts over 30 days
• Include job description, salary, benefits, working hours
• Specify contract type (indefinite or fixed-term)
• Include termination clauses

Government Registration:

• Social Security Registration: Health (EPS), Pension (AFP), Occupational Risks (ARL)
• Tax Registration: RUT (Registro Único Tributario) if required
• Labour Ministry Registration: For certain contract types

Employee Documents:

• Cédula de Ciudadanía: Colombian national ID
• Foreign ID: Passport and visa for international employees
• Educational Certificates: If required for position
• Medical Examination: Pre-employment health check

Work Authorization

Colombian Nationals:

• Only require valid cédula de ciudadanía

Foreign Nationals:

• Work Visa: Required for most employment
• Resident Visa: For long-term employment
• Temporary Visa: For short-term assignments
• Cédula de Extranjería: Foreign resident ID card

Social Security Enrollment

Employers must register employees within 2 business days of start date:

• EPS: Health insurance system
• AFP: Pension fund
• ARL: Occupational risk insurance
• CCF: Family compensation fund

Banking Requirements

• Colombian bank account typically required for salary payments
• Foreign employees may need cédula de extranjería to open accounts
• Some employers provide assistance with bank account setup

Onboarding Timeline

What the EOR Handles

Borderless AI manages:

• Employment contract preparation
• Social security registration
• Tax compliance and withholdings
• Payroll processing and mandatory benefits
• Labour law compliance
• Government reporting requirements

Worker Classification

Colombian labour law strictly distinguishes between employees and independent contractors:

Employees (Trabajadores):

• Subject to employer control and supervision
• Entitled to all labour benefits and protections
• Employer responsible for social security contributions

Independent Contractors (Contratistas):

• Provide services independently
• Responsible for own social security and taxes
• Limited labour law protections

Misclassification Risks:

• Significant penalties and back payments
• Retroactive social security contributions
• Labour law violations

Collective Bargaining

Colombia has strong union traditions in certain sectors:

• Union Membership: Approximately 4% of workforce
• Collective Agreements: Common in public sector and large companies
• Strike Rights: Protected under Colombian constitution
• Employer Obligations: Must negotiate in good faith with recognized unions

Cultural Considerations

Communication Style:

• Formal business relationships initially
• Personal relationships important for business success
• Hierarchy respected in workplace settings

Work-Life Balance:

• Family time highly valued
• Long lunch breaks common (12:00-2:00 PM)
• Punctuality expectations vary by region

Religious Observances:

• Predominantly Catholic country
• Religious holidays widely observed
• Accommodation for religious practices expected

Remote Work Framework

Legal Status:

• Remote work (teletrabajo) legally recognized since 2008
• Specific regulations updated in 2021
• Same labour rights as office-based employees

Employer Responsibilities:

• Provide necessary equipment and tools
• Ensure occupational health and safety
• Maintain communication and supervision protocols
• Cover internet and utility costs (if agreed)

Employee Rights:

• Right to disconnect outside working hours
• Same social security and benefit entitlements
• Protection against discrimination

Special Economic Zones

Colombia offers special employment incentives in certain regions:

• Free Trade Zones: Reduced tax obligations
• Orange Economy Zones: Benefits for creative industries
• Regional Incentives: Vary by department and municipality

Note: Specific benefits and requirements vary by zone and should be evaluated case-by-case.