EURESEAU
 

Colombia

START OF THE EMPLOYMENT RELATIONSHIP

Who can work in Columbia?

Colombian residents
All Colombian residents over 18 years. Under age workers must have authorization from the Ministry of Labor.

Foreign
The requirement of proportionality between local and foreign employees has been eliminated.  However any foreigner wishing to work in Colombia is required to obtain the corresponding visa.

All foreigners who come to work in Colombia must apply for a visa to be permitted to work, and should the foreigner perform a regulated profession they must obtain the corresponding permission.  According to Decree 834 of 2013, for the issuing of a temporary visa TP-4, it is no longer required to present a permit to exercise a regulated profession; it is necessary to clarify that in order to perform any regulated profession, it is necessary to have authorization of the competent professional Council.

Immigration Issues
Colombian visa are not required for nationals of several countries, however it is mandatory to obtain a visa if the purpose of the visit is to invest, do business or work in Colombia. The following chart explains the most common types of visa:

Type

Term and entries

Cost (USD)

TP-13 Visa (technical visitor visa)

One hundred and eighty (180) days, multiple entries

USD $107

Beneficiary visa

Same terms as visa holder,
multiple entries

USD $245

Resident visa

Five (5) years, multiple entries

USD $385

NE-1 Visa (commercial and business activities)

Three (3) years,  multiple entries

USD $391

NE-2 Visa (businessman using international legal instruments)

Four (4) years,  multiple entries

USD $220

NE-3 Visa (head or representative of a foreign commercial office)

Up to three (3) years, multiple entries

USD $270

NE-4 Visa (president, CEO or high ranking officer)

Five (5) years, multiple entries

USD $270

Mercosur Visa

(Argentinian, Brazilian, Bolivian, Peruvian, Chilean, Ecuadorian, Uruguayan and Paraguayan nationals)

Three (3) years. multiple entries

USD $205

TP-4 Visa (work visa)

Up to three (3) years, multiple entries

USD $252

TP-7 Visa (non-regulated cases and partner or owner of a business)

One (1) year, multiple entries

USD $207

TP-10 Visa (spouse or permanent companion of a Colombian national)

Three (3) years, multiple entries

USD $211

TP-11 Visa (tourist visa)

Up to one (1) year, multiple entries

USD $82




 
What are the main sorts of labour contract that exist in Columbia?

i.) Fixed Term Contract

ii.) Contract for the duration of a specific task

iii.) Occasional, accidental or temporary contract

iv.) Indefinite Term contract

What are the main features of each of them?

 i.) Fixed Term Contract: This type of agreement must be documented in writing and its duration may not exceed three (3) years. It can be renewed indefinitely if its initial term is longer than one (1) year. In the event of a shorter initial term, the contract can only be renewed up to three (3) equal terms or for shorter terms, after which it can be indefinitely renewed for periods of one (1) year. Termination of this type of contract requires a prior termination notice of thirty (30) calendar days.

ii.) Contract for the duration of a specific task: This is the type of agreement whereby the parties agree that the duration shall be equal to the time of a given task to be determined in the contract itself. The employment relationship ends when the work for which the employee was hired is completed.

iii.) Occasional, accidental or temporary contract: this type of contract must not last longer than a month and is characterized by satisfying the exceptional needs of a company. It therefore corresponds to temporary or special needs of the employer.

iv.) Indefinite Term contract: the term is not specified, and it is not occasional or temporary. Under this type of agreement there is no legal requirement for termination notice in advance; the agreement may be terminated at any time, subject to corresponding indemnifications if applicable.

What information should employees be given in Columbia?

The employees must be informed of the labor conditions such as: salary, benefits, working hours and duties.

DURING THE EMPLOYMENT RELATIONSHIP

What are the main employment rights in Columbia?

Probationary period
The probationary period is the initial stage of the employment contract during which the employer observes the skills of the employee, and the employee examines the conditions offered by the employer so they can determine whether to continue the labor relationship; in accordance with Article 76 of the Substantive Labor Code.

In indefinite term contracts, the probationary period can be up to two (2) months. The probationary period for fixed term agreements with duration of less than one (1) year cannot be higher than one fifth of the initial term agreed and may not exceed two (2) months.

The probationary period must be agreed upon in writing. During the probationary period the labor contract may be unilaterally terminated at any time without prior notice, and without the payment of any indemnification.

Severance pay
Before February 15 of each year, employers in Colombia have the obligation to make an annual payment to the severance fund (Fondo de Cesantías) chosen by each employee. This payment constitutes the yearly severance pay (cesantía), which is equal to one (1) monthly salary per year or a proportional value for less than a year. In addition, no later than January 31 employers must pay twelve percent (12%) of the annual severance payment directly to the employee, as interest on the severance payment.

Service premium
There is also a service premium equal to one (1) month’s salary, payable in two (2) installments: half a month’s salary payable on the last day of June and the other half during the first twenty (20) days of December. If the employee has not worked during the calendar year, the service bonus accrues on a pro rata basis for the time worked during each semester.

What are the maximum permitted daily, weekly, monthly and annual working hours?

In accordance with applicable Colombian regulations, work shifts cannot exceed eight (8) hours per day or forty eight (48) hours per week. Daytime working hours are 6:00 am to 10:00 pm, and nighttime 10:00 pm to 6:00 am.

Employees in positions of leadership, trust or management, domestic or foreign, are treated differently in regard to the maximum workday according to the nature of their labor relationship, in accordance with Article 162 of the Labor Code. Therefore, they are excluded from the regulation of maximum legal working hours.

The parties (employer and employee) may agree on a temporary or indefinite basis on the organization of successive labor shifts that allow the company or divisions thereof to operate without interruption during the entire week provided that the respective shift does not exceed six (6) daily hours or thirty six (36) weekly ones.

With regard to the forty eight (48) weekly hours the employer and its employees may contractually agree upon flexible daily working hours, distributed throughout a maximum of six days a week with one mandatory rest day which may or may not coincide with a Sunday. In this case the number of daily working hours may be distributed variably during the corresponding week with a minimum of four (4) continuous hours and a maximum of ten (10) daily hours without giving rise to any extra payment, provided the working hours do not exceed the average of forty eight (48) hours per week during the ordinary daytime shift from 6 am to 10 pm.

The maximum amount of supplementary work for ordinary employees is two (2) extra daily hours (day or night) and twelve (12) extra weekly hours.

Is there any minimum number of hours required?

No. However every worker must be paid the minimum legal salary.

What is the minimum holiday entitlement?

According to Colombian labor law, for all employees who work 1 full year in the service of the company every employer must recognize 15 consecutives working days of paid leave per year of service. In any case, the employee must take at least 6 continuous business days of vacations annually. The employer and the employee may agree to accrue the remaining vacation days.

Vacation days may be compensated for in money in two cases: a) in case of termination of contract; and b) as petitioned by the employee who is entitled to request payment of no more than half of the vacation days from the employer. This payment does not require any authorization from any labor authority in Colombia.

Can a contract be modified while still valid and in force? If so, under which circumstances?

Yes, at any time; but labor conditions cannot be changed to the detriment of the employee.

Are any particular employment relationships subject to special protection?

Yes. Pregnant women, disable workers and some members of the unions enjoy special protection.

Are there any obligations to consult with a works council and/or to undertake collective bargaining?

Collective labor law regulates relations between employers and union organizations, collective contracting and the defense of common interests, especially during collective work conflicts. Colombia’s legal system guarantees the right of workers to organize themselves in unions, to collective contracting and bargaining.

According to legal provisions, unions are organizations of workers lawfully created for obtaining, improving and consolidating common rights with their employers. It is also the association of employees aimed at the defense of the individual and collective interests of its members. There may be different types of unions, as follows:

• Company union: constituted by employees of various professions who render their services to the same company.

• Industry union or union by economic activity: constituted by individuals who render their services to different companies of the same trade or economic activity.

• Trade union: constituted by individuals who belong to the same trade.

• Miscellaneous activities union: made up by employees of different professions.

Workers and employers may agree on the terms and conditions to regulate working contracts for members of unions, which are known as union contracts. Likewise, legal provisions protect workers’ rights to negotiate those contracts through collective bargaining.

END OF THE EMPLOYMENT RELATIONSHIP  

When and how can an employer terminate an employment relationship?

Without just cause

Termination of the employment agreement by the employer without just cause requires payment of an indemnification set forth by law. The indemnification will depend on the salary and the duration of the employment agreement.  

The following table indicates the amount of the indemnification to be paid to employees if their employment agreement is unilaterally terminated without just cause:

 

Number of Years Worked

Amount payable (expressed in days)

1 or less

30 days if the employee earns less than 10 minimum monthly legal salaries (MMLS)[1]typo3/#_ftn1

20 days if the employee’s  salary is equal to or higher than 10 MMLS

More than 1

20 days per year/proportionately for fraction thereof if the employee’s salary is below 10 MMLS; in addition to the 30 days of the first year.

15 days per year/ proportionately for fraction thereof if the employee’s salary is higher than 10 MMLS; in addition to the 20 days of the first year

 

With just cause
A labor contract may be unilaterally terminated by the employer without prior notice, and without the payment of any indemnification if there is just cause, according to Article 62 of the Labor Code.

When and how can an employee terminate an employment relationship?

So-called “resignation”, without payment of any indemnification.

What are the economic consequences in each case?

The following table indicates the amount of the indemnification to be paid to employees if their employment agreement is unilaterally terminated without just cause:

 

Number of Years Worked

Amount payable (expressed in days)

1 or less

30 days if the employee earns less than 10 minimum monthly legal salaries (MMLS)[1]typo3/#_ftn1

20 days if the employee’s salary is equal to or higher than 10 MMLS.

More than 1

20 days per year/proportionately for fraction thereof if the employee’s salary is below 10 MMLS; in addition to the 30 days of the first year.

15 days per year/ proportionately for fraction thereof if the employee’s salary is over 10 MMLS; in addition to the 20 days of the first year

 

Are there any situations in which an employment relationship would terminate automatically and without the need for action by either party? If so, what are they?

No. An action of one of the parties is always needed.


[1] The minimum monthly legal salary for 2017 is COP$ 737.717.