Global HR Compliance in Colombia
Hiring internationally in Colombia requires a firm understanding of local labour laws, from contract types to dismissal procedures. Whether you’re expanding into the Colombian market or engaging skilled professionals across IT, logistics, or sales, managing local employment rules is essential to ensuring compliance and avoiding unnecessary legal risk.
This guide outlines the key employment regulations in Colombia, including contract options, working hours, termination procedures, and statutory benefits. It also explains how Acumen International’s Global Employer of Record solution can support compliant workforce engagement in Colombia without the cost and complexity of setting up a local entity.
Employment Agreements in Colombia
Open-ended contracts
These are the default contract type and can be verbal or written. They have no end date and remain in force until terminated. Employers must pay statutory benefits and are liable for severance pay unless dismissal is for just cause.
Fixed-term contracts
These contracts must be in writing. They can be signed for up to three years and renewed repeatedly. If not renewed, the employer must notify the employee in writing 30 days before the end date.
Temporary contracts
Used for short-term or casual tasks and may not exceed 30 days. Like fixed-term contracts, these must be in writing and clearly specify the duration and nature of work.
Contract extensions
Fixed-term contracts are automatically extended unless one party gives notice at least 30 days before expiry. Extensions can be made repeatedly, but excessive renewals may be interpreted as open-ended by law.
Termination and Severance
Termination with Just Cause
Employers may dismiss an employee for serious misconduct, including gross negligence, repeated underperformance, breach of confidentiality, or acts of violence. These causes are strictly defined in the Substantive Labour Code.
Termination without Cause
Employers may terminate the contract at any time but must pay severance compensation. The amount depends on the employee’s salary level and length of service.
Mutual Agreement
Employers and employees can agree to end the contract at any time, provided both parties consent in writing. No severance is required in this case.
Severance Pay
- For indefinite-term contracts:
- If the employee earns under 10 monthly minimum wages: 30 days of salary for the first year, plus 20 days per additional year.
- If the employee earns 10+ minimum wages: 20 days for the first year, plus 15 days per additional year.
- For fixed-term contracts: severance equals the salary for the remainder of the contract, but not less than 15 days.
Notice Requirements
Notice is not required in most cases of dismissal. However:
- Employers must give 30 days’ notice if a fixed-term contract is not renewed.
- If the employee is being terminated due to eligibility for a pension, a 15-day notice is required.
Employers may pay salary in lieu of notice if preferred.
Working Hours and Overtime
- Standard hours: 8 hours per day, 48 hours per week.
- Employees are entitled to at least one full day of rest every six days.
- Overtime must be authorised by the Ministry of Labour and documented.
- Maximum overtime: 2 hours per day, 12 hours per week.
- Overtime pay: 125% of the standard hourly wage on weekdays, 175% on Sundays or holidays.
Paid Leave in Colombia
Annual Leave
Employees are entitled to 15 working days of paid annual leave after each year of service. At least 6 days must be taken consecutively. Remaining days can be deferred or paid out upon termination.
Sick Leave
Sick leave is paid, but from the third day onward, employers may recover the payment from the social security system. Medical certification is required to justify absence.
Maternity Leave
Pregnant employees are entitled to 18 weeks of paid maternity leave (20 weeks for multiple births). Leave may start two weeks before the expected due date.
Paternity Leave
Fathers are entitled to 8 business days of paid leave. Employers can reclaim these payments from the health insurance system upon submission of a birth certificate.
How Acumen International Can Help You Hire in Colombia
Direct Employment Without a Local Entity
Acumen enables you to hire and pay employees in Colombia without setting up a local subsidiary. We serve as the legal employer, handling all statutory obligations while you maintain full operational control.
Local Compliance, Centrally Managed
We manage employment contracts, payroll, statutory contributions, and terminations under Colombian labour law. You avoid compliance gaps, misclassification risks, and administrative delays.
Custom Support for Complex Hiring
From regional sales representatives to specialised tech talent, we tailor hiring structures that match your organisation’s operational goals and budget, ensuring compliant and flexible employment models.
Global Mobility Support
If you need to relocate key personnel or onboard expatriate talent in Colombia, we help manage work authorisations, immigration formalities, and relocation logistics in collaboration with trusted local experts.
Global Payroll Calculator
Acumen gives you access to our Global Payroll Calculator — a comprehensive tool for estimating employment costs in Colombia, including net pay, employer contributions, and statutory benefits.
One Partner Across 190+ Countries
Whether you’re entering one market or many, we offer unified employment support across borders. We help you scale internationally with consistency, cost-efficiency, and compliance.