GUIA_LEGAL_CHAPTER_5_LABORAL_REGIMEN.pdf

TO DOING
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LEGAL
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This document reflects the valid Colombian
legislation at the date of its development and it seeks
to provide general and basic information of the
Colombian law. This message does not represent or
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matter. Such legal counsel must be obtained from
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LABOR REGIME
Chapter 5
Colombian labor legislation is mainly based on
standards of public order, which are mandatory for
the companies and employees whose prerogatives
cannot be waived under any circumstance. Therefore,
it is necessary for every investor to know that:
i. Any employment relationship executed in Colombia,
regardless of the nationality of the parties, will be
governed by Colombian law.
ii. Employers and employees are entitled to agree on the
salary freely, which cannot be less than the minimum
legal monthly wage (MLMW). This minimum wage is
set annually by agreement between unions, employers,
and the Government. In case of no agreement between
the parties, it is fixed unilaterally by the Government.
iii. Companies must enroll their employees in the Integral
General Social Security System (including foreigners
hired under labor agreements, with some exceptions).
iv. Any payment compensating the work shall be
considered salary. The employer and the employee
may agree on the payment of extra-legal non-salary
benefits as long as they meet the requirements
established by the applicable regulations.
v. The salary must be paid in Colombian pesos (COP) in
Colombia, even if agreed on in foreign currency.
Work relationships are regulated by the Labor Law frame
as follows:
Labor Law
Individual Collective Social Security
* Regulates relationships between
employers and employees.
* Regulates relationships between
employers and employees enrolled with
Unions or when non-unionized employees
negotiate collective agreements.
* Regulates the coverage of risks related
to health, life, loss of employees' work
capacity and establishes a social
assistance system.
5.1. Overview
An employment contract does not require any formality. For it to exist, only the following three (3) elements must concur:
Personal service
Continued subordination and dependency of
the employee to the employer Remuneration
Employment contract
02

Types of labor contracts depending on their duration
• Fixed term, which shall not
exceed three (3) years.
• This type of contract must be
in writing.
• This contract could be
renewed indefinitely. This
does not change the fixed
term nature.
• Contracts which have been
agreed on for terms of less
than one (1) year can be
renewed for up to three (3)
consecutive periods of equal
or shorter terms, after which
any further renewal shall be
for one (1) year.
• If a renewal is not desired,
written notice must be given
to the employee no later than
thirty (30) calendar days prior
to the expiration date of the
contract.
• Non-fixed duration.
• Verbal contracts are
considered indefinite
term contracts,
regardless of if the
parties have agreed
otherwise.
• This type of contract is
agreed for tasks that are
not part of the regular
activities of a company.
• Its term is shorter than
one month. No notice
for termination in
advance, is required.
• Duration depends on the
time of a determined work
or task.
• It is required that the work
or task contracted be
precisely described.
Therefore, it is necessary
for the contract to be
agreed on in writing.
• Contracts for the duration
of the task cannot be
renewed.
5.2. Employment Contracts
5.2.1. Types of Contracts by Duration
Employment contracts can be classified according to their duration, as follows:
5.2.2. Trial Period
The objective of the trial period is to give the employer
time to assess the employee’s aptitude for the position
in which they were hired. It also serves as a time for
the employee to assess the suitability of the working
conditions. During this period (which must be agreed
on in writing), either party may terminate the employ-
ment contract without prior notice, without paying the
legal severance, and indicating why the trial period
was not fulfilled.
In an indefinite term contract, the trial period cannot
exceed two (2) months; in a fixed-term contract the
trial period shall not exceed one fifth (1/5) of the
agreed term, with a maximum of two (2) months.
5.3. Payments Arising from the Labor
Relationship
5.3.1 Salary
Salary is the direct compensation that the employee receives
for the subordinated services rendered to the employer.
Fixed Term
Indefinite/
non-fixed term
Occasional, Casual
or Temporary
For the Duration
of the Work
or Hired Service
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Description Minimum amount
An ordinary salary remunerates the regular work.
When applicable, regular pay must be supplemented
to accommodate for (i) overtime pay or night work; (ii)
pay for work on mandatory rest days; (iii) percentage
of sales and commissions; (iv) salary-nature bonus such
as the ones determined by the employee’s individual
performance; (v) permanent travel expenses for
employee’s meals and lodging, and (vi) any payment
given as direct compensation of the services provided
by the employee in general.
The employees that earn one ordinary salary have the
right to earn the social payments provided by the law,
as explained below.
Under this modality, a salary covers regular work
hours, and also remunerates beforehand all
surcharges, fringe benefits, and all types of payments
prescribed by Law, except vacations. The employee
only receives twelve (12) monthly salary payments per
year.
An integral salary arrangement must be stated in
writing. This modality can only be adopted for those
employees earning more than ten (10) times the
current MLMW. This type of salary includes a fix
amount no less than ten (10) MLMW in addition to the
payroll benefit factor which cannot be less than 30%
of the total salary.
A. Type of salaries
Type
Ordinary
Integral/Al
l Inclusive
B. Wage exclusion agreements
Employees and employers are able to agree on non-salary nature benefits on payments that are excluded of the
basis for liquidating and paying fringe benefits, vacation, severance, contributions to the Social Security and
payroll taxes and, in general, all labor accruals that are calculated over the salary, as long as they are not inten-
ded to remunerate the employee's activity or are based on the fulfillment of targets and objectives.
Non-salary nature payments will be exempt from payment of contributions to the Integral Social Security System so
long as they are less than forty percent (40%) of the total compensation for the employee. In the event that such
non-salary payments exceed this percentage, such excess must be included in the basis for the calculation and
payment of contributions to the health, pension and occupational risk subsystems, exclusively.
C. Traveling expenses (per diem)
Traveling expenses include both travel costs, meals, and other expenses which are incurred when the employee is
traveling to perform a particular task for the benefit of the employer. Regardless of how a company agrees, treats
and manages them (advance payment, reimbursement, travel expenses, corporate credit card, etc.) they are consi-
dered travel expenses. The portion of permanent per diem payments destined to lodging and meals constitute part
of the salary. The occasional per diem payments, and/or those habitually granted but not intended for lodging
and meals are not considered salary.
2024
COP $1.300.000
(approx. USD $ 332).1
2024
COP $16.900.000
(approx. USD $4,311).
1
For purposes of the calculation in USD, a exchange rate of COP 3.920 was used.
04

5.3.2. Fringe Benefits
Employers have the obligation to pay their employees who earn an ordinary salary the following fringe benefits
regardless of the term of their contract:
Description
Pay period
Item
Severance
Aid Annual
Annual
Semiannual
Every four
(4) months
Interest on
Severance Aid
Services Bonus
Dress and
Footwear
Employers must make an annual deposit in a severance aid fund with
which the employee is affiliated. The value of severance aid is equivalent
to one (1) month's salary for each year of services and proportional to the
fraction of the year.
This appropriation must be made before February 15 of each year in the
individual account of the employee, or must the aid be paid to the
employee upon termination of the employment contract.
A lack of timely provision and deposit in the correspondent unemployment
aid fund generates a penalty of one day of salary per each day of delay
until effective payment is verified during the term of the employment
relationship, or until the date when the employment contract ends,
whichever occurs first.
Interest on Unemployment Aid is equivalent to 12% per annum on the balance
of each year’s severance aid owed to the employee as of December 31 of the
preceding year, which must be paid no later than January 31 of the next year
of the severance aid assessment.
Service bonuses are equivalent to 15 days of salary for each semester of
service or are proportional to the fraction of the year and must be paid no later
than June 30 and December 20 of each year.
Dress and footwear are comprised of one pair of shoes and one work outfit to
be provided at least three times per year to every employee, in accordance
with the task to be performed (no later than April 30, August 31 and
December 20 every year). Employees entitled to this benefit are those who
earn up to the equivalent of two times the MLMW. COP $ 2.600.000
(approx. USD $663) and that have been employed for at least three months.
5.3.3. Transportation Aid
The employer must pay a fixed sum that is established annually by the National Government to subsidize transporta-
tion expenses, to employees with a salary of no more than the equivalent of two times the MLMW (COP $2.600.000
– approx. USD $663) so long as the employees reside further than 1 kilometer from their workplace. Transportation
aid should not be recognized if the company provides transportation to the workplace. The transportation aid for the
year 2024 is the sum of COP $ 162.000 (approx. USD $ 41). In the events of sick leave, holidays and licenses, there
is no obligation for the employer to pay the transportation aid. This aid shall be included in the base to calculate and
pay fringe benefits by express provision of law.
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In case the employee earns an all-inclusive/integral salary, Social Security contributions will be calculated based on 70%
of the salary and not based on 100% which applies to employees who earn an ordinary salary.
It is important to mention that the maximum basis for the contributions to the Social Security System (Health, Pension and
Labor Risks) is 25 MLMW. (COP $32.500.000 – USD $8.291).
Colombia has entered into bilateral social security agreements with Chile, Argentina, Uruguay, Ecuador, Spain and Peru.
The purpose of these agreements is to guarantee that citizens of both countries have their contributions to a pensions system
acknowledged in any of the other countries, (depending on the bilateral agreement). This is so that the old-age, disability,
and survivors’ pensions are recognized under the conditions and characteristics of the employee’s country of residence by
the time they request the relevant pension.
5.3.5. Payroll Taxes
Employers who have more than one permanent employee are required to make additional payments to the Colombian
Institute of Family Welfare (ICBF in Spanish), to the National Apprenticeship Service (SENA in Spanish) and to the Family
Compensation Funds (CCF in Spanish). The following table shows the payroll percentages to be paid to each of these
entities:
*The non-salary benefits or payments shall be exempt from contributions to the Integral Social Security System in a portion that
does not exceed 40% of the employee's total remuneration. A portion that exceeds such limits must be included in the base for
contributions to the Integral Social Security System (Law 1393 of 2010).
** The following employers are exempted from paying the 8.5% of contributions to the health system: 1) Income taxpayers for
employees that earn less than 10 MLMW 2) physical employers for the employees that earn less than 10 MLMW, 3)
Temporary Unions, Consortiums and autonomous patrimonies, which are employers for those employees who earn less than
10 MLMW 4) Free Trade Zones users. This exemption does not apply to employers regarding their employees who earn 10
Monthly Legal Minimum Wages or more or to entities which belong to the Special Tax Regime. It also does not apply to
physical employers who hire less than two (2) employees.
***The percentage of the contributions for Labor Risks varies in accordance with the insured risk. This risk is defined by the
kind of activity to be carried out.
**** The percentage of the contribution to the pension solidarity fund varies according to the employee’s salary. If the monthly
salary of the employee exceeds 4 MLMW (COP $5.200.000 – approx. USD $1,327) they will have to make an additional
1% contribution. If the monthly salary of the employee exceeds 16 MLMW (COP $20.800.000 – approx. USD $5.306)
they will have to make an additional contribution according to the salary amount. This amount can oscillate between 0.2%
and 1% additional to the contribution
*The following employers are exempt from paying payroll taxes regarding SENA and ICBF: (i) Income
taxpayers, for employees who earn less than 10 MLMW (ii) physical employers for the employees that earn
less than 10 Monthly Legal Minimum Wages, (iii) Temporary Unions, Consortiums and autonomous
patrimonies which are employers for those employees who earn less than 10 Minimum Legal Monthly Wages
(iv) Free Trade Zones users. This exemption does not apply for employers regarding their employees that earn
10 Monthly Legal Minimum Wages or more, entities that belong to the Special Tax Regime or physical
employers that hire less than two (2) employees.
The CCF grants the employees whose remuneration does not exceed 4 MLMW (COP $5.200.000 – approx.
USD $1,327) an aid for goods or services. Its fundamental purpose is to alleviate the economic burdens
incurred through the support of a family, which is seen as the basic nucleus of society.
5.3.4. Contributions to the Integral Social Security System
The Social Security System integrates the pensions Subsystem (Pensions), the health Subsystem (Health) and the labor
risks Subsystem (Labor Risks). Every employer is under the obligation to enroll their employees in the Social Security
System and to make the corresponding complete monthly contributions on time. The percentages that the employer
and employee must pay to the Social Security System are the following:
System*
Contributions (% of salary)
Employee Employer
4% 12%
4% 8,5%**
-
Between 0.348%
and 8.7%
Between
1% and 2%
-
Entity
% of Payroll
< 10 MLMW* > 10 MLMW
4%
0%
0%
4%
2%
3%
Pensions
Health
Labor Risks***
CCF
SENA
ICBF
Pension Solidarity
Fund****
06

The UGPP can also impose fines up to 15.000 Tax Value
Units – UVT2
(COP $705.975.000 – Approx. USD
$180.096) for information and/or proof that is not
supplied in time or that is incomplete or inaccurate.
5.4. Working Hours
Working hours are the time during the day in which the
employee is working for the company. The maximum legal
working hours is forty-seven (47) hours per week and will
decrease gradually until forty-two (42) hours per week in
2026.
As agreed between parties, the maximum legal working
hours may be extended from Monday to Friday with the
only purpose of not working on Saturday. The working
hours must be distributed during the day in at least two (2)
sections, with a rest break in between, which rationally
respond to the nature of the job and the needs of the emplo-
yees. The law also allows flexible working hours, which can
be arranged with the employees.
In accordance with the provisions of Law 2101 of 2021,
the maximum legal working schedule will be gradually
reduced as follows:
- • As of July 15, 2024, the maximum workweek
will be 46 hours.
• As of July 15, 2025, the maximum working week
will be 44 hours.
• As of July 15, 2026, the maximum working week
will be 42 hours.
The maximum legal working hours may be extended for
up to two (2) daily hours and twelve (12) hours a week, by
express authorization from the Ministry of Labor. These
hours are referred to as overtime or supplementary work.
Night work is that which takes place between 9:00 p.m.
and 6 a.m. Night work by the mere fact of being at night
is remunerated with a surcharge of 35% on the value of
the ordinary daily work.
Limits regarding maximum legal working hours do not
apply for employees holding direction, trust and manage-
ment positions.
5.4.1 Flexible working day
The parties of the employment contract may agree to
organize successive work shifts every day of the week,
not exceeding 6 hours per day or 36 hours per week.
Likewise, they may agree on a flexible work schedule,
with 42 hours of work per week, distributed in no more
than 6 days. Under this work schedule the number of
5.3.6. Social Security Authority
Although Social Security entities and Payroll Tax entities are able to begin audit and payment litigations regarding
inconsistencies on the Social Security Contributions and Payroll Taxes, The Management Unit for Pension and Payroll
Contributions – (UGPP for its Acronym in Spanish) is the entity with the prevailing power to verify the correct calcula-
tion and payment of Social Security Contributions and Payroll Taxes by employers in Colombia.
In consideration of the auditing processes, the entity may impose the following sanctions depending on the stage of
the administrative process:
Requirement to declare and/or amend Official Liquidation
Omission and
late payment
Inexactitude
Action
Penalty of 5% over the non-liquidated / paid amounts per month
or in proportion, without exceeding 100% of the contribution in
charge. The corresponding interests over late payment are not
included.
Penalty of 35% of the difference between the contributions made
and the non-liquidated / paid amounts, the corresponding
interests over late payment are not included.
Penalty of 10% over the non-liquidated
/ paid amounts per month or in
proportion, without exceeding the
200% of the contribution in charge.
The corresponding interests over late
payment are not included.
Penalty of 60% of the difference
between the contributions made and
the non-liquidated / paid amounts.
The corresponding interests over late
payment are not included.
2
The UVT for 2024 was set at COP $47,065 (Approx. USD 10,8).
07

hours worked daily will be no less than 4 and no more
than 9, and no overtime will apply if the employee does
not exceed the maximum ordinary working hours.
5.4.2 Statutory Paid Rest Entitlements
A. Mandatory paid weekly rest and
public holidays
Employers have the obligation to pay their employees the
time off on Sundays, as well as on national and religious
holidays. This payment is included in the monthly salary.
For occasional Sunday work (defined as two Sundays in a
calendar month) the employee is entitled to an extra pay
equivalent to 75% of the regular salary, calculated pro
rata for the hours worked or a compensatory rest day
enjoyed in the following week as based on the employee’s
preference. For regular Sunday work (defined as 3 or
more Sundays worked in a calendar month), the employee
is entitled to an extra payment equivalent to 75% of the
regular salary, calculated pro rata for the hours worked, as
well as a compensatory day off in the following week.
It is important to mention that the employee and employer
can agree to convert the Saturday on the mandatory rest
day instead of Sunday, and then, for all legal purposes,
Saturday will be recognized as if it were a Sunday.
B. Annual vacations with pay
All employees are entitled to a paid annual leave equivalent
to 15 working days every year of service and proportional to
any portion thereof. Every employee must enjoy at least six
continuous days of holidays per year and employees may
only accumulate the remaining days of up to two years, and
in some cases up to four years. Vacations could be paid in
cash by mutual agreement of the parties up to half of the
accrued vacations and the employee shall enjoy the other
half in time. Also, at the termination of the employment
contract, untaken vacation entitlement must be paid.
5.4.3. Surcharges Surcharge for nightti-
me, Sunday, holiday, and overtime
work.
The following table shows the possible surcharges applica-
ble in the execution of the work relationship.
Employers shall keep a daily record of the overtime, indica-
ting the amount of overtime hours, the employee’s name, and
the corresponding payment.
5.5. Special Obligations of the Employer
5.5.1. Apprenticeship Contracts
Employers who employ more than 20 employees must hire one
apprentice. They must hire an additional apprentice for each 10
employees or fraction less than 20 employees. Companies
having between 15 and 20 employees shall have one apprenti-
ce. If the employer does not wish to hire apprentices as
required by law, the employer may instead pay the National
Apprenticeship Service (SENA) an amount that shall not
exceed one MLMW for each apprentice that should have
been hired and was not.
5.5.2. Statutory Leaves
A. Maternity leave
Every pregnant or adoptive mother is entitled to 18
weeks of paid leave which can begin two weeks prior
to the expected date of birth. Of the 18 weeks of paid
leave, the week prior to the anticipated date of birth is
mandatory. For multiple pregnancies, the paid leave
entitlement is of 20 weeks. Maternity leave is paid by
the Social Security System, as long as the mother has
been enrolled during the time of the pregnancy or a
proportion thereof. Employment cannot be terminated
on the ground of pregnancy or breastfeeding. A preg-
nant woman’s contract can be terminated by just
cause, if a labor inspector has approved her dismissal.
It is prohibited to ask for pregnancy tests to job candi-
dates.
Private entities with capitals above 1.500 MLMW
(COP $1.950.000.000, approx. USD $497,449) or
those with less than 1.500 MLMW but with more than
50 employees, and public entities, must assign a
physical space for lactating women to extract and
conserve milk during the lactation period. Also, the
employer must grant these employees a rest of 1 hour
during the work shift, during the first six months
following the birth of the child, and 30 minutes as long
as adequate and continuous breastfeeding is maintai-
ned and indicated.
B. Paternity leave
The husband, partner of the pregnant employee or
adopting father is entitled to two (2) weeks of paid
paternity leave, provided by Health Social Security
System proportionality to weeks of contribution during
Night work
Day work on Sunday or holidays
Night work on Sunday or holidays
Day overtime on Sunday or holidays
Day overtime
Night overtime
Night overtime on Sunday or holidays
Daytime hour x 35%
Daytime hour x 175%
Daytime hour x 175%
Daytime hour x 125%
Daytime hour x 250%
Daytime hour x 200%
Daytime hour x 210%
08

the gestation period. The adopting parent shall be
entitled to the same period of leave.
The only valid support for the granting of paid paterni-
ty leave is the Civil Registry of Birth, which must be
submitted to the EPS no later than thirty (30) days after
the date of birth of the child. The paternity leave will
be extended by one (1) additional week for each
percentage point of decrease in the structural unem-
ployment rate, without in any case exceeding five (5)
weeks. Paid paternity leave will be paid by the EPS,
for which it will be required that the father has been
effectively contributing during the weeks prior to the
recognition of the paid paternity leave.
C. Shared Parental Leave
The parents may freely distribute among themselves
the last six (6) weeks of the mother's maternity leave,
with the mother being obliged to take the first twelve
(12) weeks of her leave. However, parents may not
intercalate or take simultaneously the periods of
leave except for postpartum illness of the mother,
duly certified by a doctor.
Shared parental leave will be remunerated based on
the salary of the employee who enjoys the leave for
the corresponding period. The employer or EPS will
be in charge of the payment thereof, according to
the regulations in force.
D. Flexible part-time parental leave
The mother and/or father may opt for a flexible
part-time parental leave, in which they may exchan-
ge a determined period of their maternity or paterni-
ty leave for a part-time work period, equivalent to
double the time corresponding to the selected period
of time. This leave, in the case of the mother, is inde-
pendent of the breastfeeding period.
Fathers may use this figure before the week two (2)
of their paternity leave; mothers, no earlier than
week thirteen (13) of their maternity leave.
Flexible part-time parental leave may also be used
by mothers and/or fathers who also make use of
shared parental leave, who meet the requirements
previously described.
E. Bereavement leave
Employees are entitled to five working days of paid
bereavement leave on the death of a spouse, perma-
nent companion and a relative up until the second
degree of consanguinity, first degree of affinity and
second degree of civil relationship (parents,
children, siblings, grandparents, grandchildren, in
laws), regardless of the modality of employment.
Regarding kinship through adoption, relatives to the
second degree are included, that is, the adoptive
parent to the adoptive child and vice versa, siblings
and grandparents.
F. Leave for the care of children suffering
from a terminal illness or severe clinical
condition resulting from a serious
accident.
The Employer will grant, by mutual agreement with
the Employee, and subject to medical certification
specifying the need for accompaniment, a leave of
10 working days per year for childcare to the father,
mother or whoever has custody and personal care of
the minor who suffer from a terminal illness or severe
clinical condition resulting from a serious accident
and require permanent care, or require palliative
care for the control of pain and other symptoms.
5.6. Regulations
Employers are required to issue the following regulations:
5.6.1. Work Regulations
Any business with more than 5 permanent employees
for commercial businesses, more than 10 employees
for industrial businesses, or more than 20 employees
for agricultural, livestock or forestry businesses must
issue work regulations.
5.6.2. Industrial Health and Safety
Regulations
Companies that have 10 permanent employees or
more must establish industrial health and safety
regulations.
5.7. Termination of the Employment
Contract
In general, with some legal and constitutional excep-
tions (e.g. pregnant and lactating women; unionized
employees; or employees entitled to be rehired in the
event of dismissal), employment agreements may be
terminated without prior notice by any of the parties.
However, the effects of the termination vary depen-
ding on the type of contract and whether the contract
is terminated with or without just cause.
09

b. Indemnification for failure to pay or incomplete
payment of wages and/or benefits upon termination of
employment:
If at the time of employment termination, the employer has
failed to pay the employee the sums owed for salary or
additional benefits in due time and amount, the employee is
entitled to indemnification pay of one day of salary for every
day of delay in payment for the first 24 months or until the
payment has occurred if it happened earlier. From the 25th
month onwards, if no payment has been due, default
interests begin to accrue at the maximum legal interest rate,
until the payment is completed. This indemnification does not
operate as a full right, to be applicable; the interested party
shall obtain a court order, which only is granted if the emplo-
yer's bad faith is shown in trial.
c. Indemnification for lack of deposit or incomplete depo-
sit of unemployment aid in the respective fund.
With respect to employees with ordinary salary,
employers who do not deposit or who deposit an
incomplete amount of unemployment aid in the fund
with which they are affiliated, will be sanctioned with
an indemnification equivalent to one day of salary per
each day of delay in the complete deposit until: (i) full
payment is made; or (ii) termination of the employment
agreement, whichever occurs first.
5.8. Employment Stability
Pursuant to constitutional and legal provisions, some employees
cannot be dismissed unilaterally and without just cause. The
employees covered by these provisions include: (i) pregnant
and lactating women; (ii) spouses, permanent companions or
partner of an economically dependent pregnant women who
are affiliated to them as their beneficiary in the social security
health subsystem (iii) unionized employees; (iv) employees who
are in a vulnerable health condition. (v) employees who are
three years or less away from achieving the requirements to
obtain the right to their pension; (vi) employees who have filed
complaints of workplace harassment (as long as they meet
certain requirements).
5.9. Prevention of workplace bullying
mechanism
Employers have the obligation of establishing in the
workplace regulations, mechanism addressed to avoid
workplace bullying conducts. All employers shall establi-
sh a confidential and conciliatory mechanism which shall
apply in case of such conducts.
Type of Employment Contract
Fixed Term
For the Duration of the Work
Indefinite Term
The indemnification is equivalent to the salaries which
correspond to the remaining period of the contract.
The indemnification is equivalent to the salaries which
correspond to the remaining period of the duration of the work,
but in no event less than 15 days of salary.
As a general rule, for employees earning a salary of less than 10 times the
MLMW COP $13.000.000 for year 2024 – USD $3,316):
30 days of salary for the first year of employment plus 20 additional days of
salary for each subsequent year and pro rata for fractions of a year;
For employees that earn a salary equal, or above, 10 MLMW; 20 days of
salary for the first year of their services and 15 days of salary for each
following year and proportional to each fraction of a year.
Indemnification
5.7.1. Indemnification
Indemnification payments become payable if the employer decides to terminate the employment relation without just
cause, fails to comply with a legal or contractual obligation, or if fails to comply with obligations that the labor law
imposes on employers. Indemnifications are integrated by damage and loss of profits and their determination
depends on the type of contract, as follows:
a. Indemnification for the termination of the employment agreement without just cause
As in the case above, this indemnification operates
only by means of a court ruling and when the emplo-
yer’s bad faith is proven.
10

It is understood that workplace bullying means any
persistent and demonstrable conduct of an employer, or
an employee to another employee, coworker, subordina-
te, etc., to cause fear, intimidation, anguish, panic, labor
damages, demotivation or their resignation.
5.9.1. Working environment Committee
Employers must create working environment committees
which receive and process the complaints submitted
regarding possible workplace bullying situations. This
committee shall be bipartite and shall meet every three
months or when required.
5.10. System of management of work
safety and health (SG-SST for its acronym
in Spanish)
Employees have the obligation to establish a system of
management of work safety and health, which must be
implemented in five phases:
1. Initial evaluation: identification of the companies needs
in order to determine the work plan.
2. Improvement plan according to the initial evaluation:
adjust the SG-SST plan according to the background
done to the initial plan.
3. Execution: ongoing test of preventive surveillance for the
execution, development and implementation of the
SG-SST.
4. Monitoring and improvement plan: preventive
monitoring of the execution, development and
implementation of the SG-SST by the Ministry of Labor
and the Labor Risks Administrator.
5. Inspection, monitoring and control: verification of
SG-SST’s regulation compliance of the Company and
executed by the Ministry of Labor.
The management of work safety and health system, is a
process logically developed by stages based on perma-
nent improvement including policies, organization,
planning, implementation, evaluation, auditing, and
improvement actions which have the purpose of recogni-
zing, evaluating and controlling the risks that may affect
safety and health in the workplace.
5.10.1. Work health and safety Joint Com-
mittee
Any company with 10 employees or more, have the
obligation to establish a Joint Committee for safety and
health in the workplace (COPASST for its acronym in
Spanish).
5.11. Collective Labor Law
Collective labor law regulates relationships between
employers and employees’ organizations during collecti-
ve bargaining. It also regulates the defense of employers’
and employees’ common interests, during collective labor
dispute.
5.11.1. Right of Association in Trade
Unions
Employees are entitled to unionize as part of their enjoy-
ment of labor rights. This constitutional right aims to
protect the creation and development of unions, as well
as to guarantee enjoyment on the part of the employees
to defend their labor and union interests.
5.11.2. Trade Unions
Unions are employees’ organizations legally constituted
with the purpose of obtaining and improving defense of
individual and collective interests as well as consolidating
common rights vis-à-vis their employers. All trade unions
need at least twenty-five 25 members to be incorporated
or to survive. Trade unions are classified as a company,
as industry or as miscellaneous:
- Company union: Constituted by employees of
various professions who render services to the same
company.
- Industry union or union by economic activity: Consti-
tuted by individuals who render 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 emplo-
yees of different professions.
5.11.3. Collective Bargaining Agreements
and Collective Work Agreements
A Collective Bargaining Agreement is entered into by one
or several employers and one or several unions to set the
conditions that shall govern the employment agreements
during their validity. The Collective Work Agreement
regulates the conditions that will govern the employment
agreements of nonunion employees.
5.11.4. Strike
A strike is the temporary collective and peaceful work
stoppage of the employees of a company. It is only legiti-
mate and possible within the process of collective bargai-
ning as an option for employees who work for an emplo-
yer in the private sector that does not carry out activities
11

which are considered an essential public service under
the law.
5.12. Other Special Employment Forms
Colombian law allows other employment forms for
permanent personnel, with a particular regulation. In
each case, it is important to verify the adjustment to the
law, to avoid contingencies.
5.12.1. Services Agreements
Individuals or legal entities can execute services agree-
ments as independent contractors (individuals or legal
entities). However, these contracts can only be executed
when the provider enjoys full technical, administrative
and financial independence and autonomy, such as
practitioners of liberal professions. Under these agree-
ments, no relationship of subordination between the
company and the contractor is created.
If the contracting party and the contractor develop
similar or related activities, the contracting party will be
liable for wages, benefits and indemnifications that the
contractor has failed to comply with regarding their own
employees who have been contracted in order to
develop services in favor of the contracting party.
5.12.2. Temporary Services Companies
(TSCs)
Temporary Service Companies supply temporary
personnel in activities where the user company requires
temporary employees. The employees are directly hired
by the TSC, which for all legal purposes is the actual
employer. Companies using these services may only
employ temporary employees as provided by law; i) in
case of occasional, incidental or casual labor, ii) when
it is required to replace an employer that is on vacation,
license or sick leave, and iii) to meet an increase in
production, transportation, sales, seasonal harvest
periods and the provision of service, provided that in
such cases, they do not exceed a period of six months,
renewable for another six months.
5.12.3. Associated Labor Cooperatives
(CTAs)
These are nonprofit organizations which bring together
individuals who participate in management and make
economic contributions to the cooperative. The aim of
cooperatives is to produce goods, carry out works and
provide services in common, through processes or sub
processes. Likewise, cooperatives have ownership of all
the means of production and/or labor, such as the
facilities, equipment, machines, and technology. Prohibi-
ted activities for CTAs are acting as labor intermediaries
or providing employees.
results in the imposition of fines up to 125.000 times the
U.V.T. (COP $ 5.883.125.000 approx. USD
$1,358,690).
5.12.4. Labor intermediation/outsourcing
fines.
The Ministry of Labor is able to impose fines up to
125.000 U.V.T. (COP $ 5.883.125.000 approx. USD
1.500.797), for beneficiaries and suppliers that develop
illegal intermediation without complying with the full
legal requirements.
Performing prohibited activities results in the imposition
of fines up to 125.000 times the U.V.T. (COP $
5.883.125.000 approx. USD $1,358,690).
5.12.4. Labor intermediation/outsourcing
fines.
The Ministry of Labor is able to impose fines up to
125.000 U.V.T. (COP $ 5.883.125.000 approx. USD
1.500.797), for beneficiaries and suppliers that develop
illegal intermediation without complying with the full
legal requirements.
5.15 Telecommuting, Work from Home
and Remote Work.
We will proceed to point out the main characteristics of
Telecommuting, Work from Home and Remote Work, as
non-face-to-face modalities of service provision
12

5.15 Telecommuting, Work from Home and Remote Work.
We will proceed to point out the main characteristics of Telecommuting, Work from Home and Remote Work, as non-fa-
ce-to-face modalities of service provision:
Definition of
the modality
Term
Can the
employee
render
services from
abroad?
Regulations
Telecommuting Work from Home
Law 1221 of 2008
Decree 1227 of 2022
It is an instrument for employment
and self-employment generation
through the use of information and
telecommunication technologies
(ICT).
Telecommuting may be implemented
under the three (3) following
alternatives:
· Autonomous: Telecommuters
who use their own home or a place
chosen as such workspace or a
commercial establishment outside of
the employer’s facilities to carry out
their professional activity. These
individuals permanently work outside
the company’s facilities and visit the
office only on some occasions.
· Mobile: Telecommuters who do
not have an established workplace
and the main tools to render their
services are the mobile devices.
· Supplementary: Telecommuters
who work two (2) or three (3) days a
week at home and the rest of the time
in the company’s facilities.
It can be agreed with the employee
from the beginning of the
employment relationship (or at any
time) and can be in place as long as
the employment relationship remains
in force.
It is not prohibited, but in practice it
leads to potential difficulties in
relation to social security coverage.
No No
Law 2088 of 2021
Decree 649 of 2022
It is a temporary authorization given by
the employer to the employee in order to
carry out his/her activities outside of the
employer’s facilities without modifying the
employment relationship, when
occasional, exceptional or special
circumstances arise that prevent the
employee to work on-site.
Occasional, exceptional or special
circumstances are those extraordinary
and non-habitual situations, which are
estimated to be surmountable in time,
attributable to external, non-work-related
events or events within the orbit of the
employee or the employer that allow the
employee to perform the contracted work
in a place other than the usual place of
work.
The authorization may be given for three
(3) months, extendable for another three
(3) months. However, it may be extended
if the exceptional circumstances persist.
It shall be agreed with the employee from
the beginning of the employment
relationship and can be in place as long
as the employment relationship remains in
force.
Remote Work
It is a work modality that implies
that the execution of the
employment relationship, during its
entire term, is carried out
completely remotely using
information and
telecommunications technologies
and, for this reason, there is no
need for the employee to have a
specific workplace.
The employer and the employee
should not have any face-to-face
interaction whatsoever during the
employment relationship.
Law 2121 of 2021
Decree 555 of 2022
13

Is reporting to
the Ministry of
Labor required?
Requires the
reporting to the
Labor Risk
Administrator
and the
adjustment of the
SG-SST?
Obligation
related to the
costs for internet,
energy and
connections.
Requires the
creation of
a policy or
manual
for its regulation?
Telecommuting Work from Home
Yes. However, if the regulation on
telecommuting was already
included in the Internal Work
Regulations, it may be retained.
The employer and the employee
may, by mutual agreement and in
accordance with reasonable criteria,
set the cost of a monthly allowance to
compensate the costs of internet,
fixed and mobile telephony and
energy.
The employee may assume in full the
cost of internet and energy services, if
so agreed between the parties.
No
No No
Yes
Yes Yes Yes
For those employees who earn a salary
up to two (2) monthly minimum wages
(for 2024 COP $2.600.000 approx.
USD $663), they are entitled to a digital
connectivity allowance equivalent to
COP$162.000 Approx. USD $41.
Employers must provide and guarantee to
the remote employee the costs related to
connections, internet or phone related
costs, programs, energy cost, and
transportation costs (when required by the
employer).
The amount granted by the employer shall
not be less than the legal transportation
allowance.
Remote Work
No
5.16. Labor Disconnection Law
This law regulates and promotes the right of employees to disconnect from work, in order to guarantee the effective enjoyment of their free time, rests, leaves
and vacations, in order to create a balance between the personal, family and work life.
Disconnection from work is defined as the right of employees to have no contact by any means or tool, whether technological or not, to attend work related
matters outside the ordinary or maximum legal working day, or during their vacations or rest time.
The following cases are excluded from the regulation on labor disconnection:
1. Those who, due to the nature of their activity or duties, must be permanently available.
2. Also, when, due to an act of force majeure, the operation of the company may be affected, and for this reason the employee must attend the work
requirement outside their working hours since there is no other viable alternative.
14

00
REGULATION SUBJECT
Verbal contracts
Article 37 of the Labor Code
Written contracts
Fixed term contracts
Contract for the duration of the work
Indefinite term contracts
Temporary contracts
Probation period
Wages
Payments not equivalent to wages
Unemployment aid
Article 46 of the Labor Code, Article 1, Decree 1127 of 1991
Article 76-80 of the Labor Code
Article 1 of Law 52 of 1975 Interests on unemployment aid
Article 306-308 of the Labor Code Legal bonus
Article 2 Law 15 of 1959
Article 230-235 of the Labor Code Dress and footwear for employees
Article 172 -178 of the Labor Code Paid holidays
Article 186 of the Labor Code Paid annual vacation
Law 21 of 1982, Law 100 of 1993, Law 797 of 2003, Law 1393 of 2010,
Law 1438 of 2011, Law 1607 of 2012, Law 1819 of 2016.
Contributions to the Social Security System and Payroll Taxes
Transport allowance
Apprenticeships
Bereavement leave
Leave for the care of children suffering from a terminal illness or
severe clinical condition resulting from a serious accident.
Internal labor regulations
Industrial health and safety regulations
Termination of employment agreement- indemnifications
Article 61-66 of the Labor Code
Article 32-42, Law 789 of 2002 30-41 of the Labor Code
Maternity leave
Paternity leave
Article 236 of the Labor Code, Law 1822 of 2017, Law 1823
of 2017
Article 236 of the Labor Code, Law 2114, 2021
Article 57, Section 10 of the Labor Code,
complemented by Law 1280 of 2009
Law 2174 of 2021
Article 249, 250 of the Labor Code
00
Regulatory Framework
15

00
REGULATION SUBJECT
Prevention of bullying in the workplace mechanism
Law 1010 of 2006, resolution 652 of 2012 and resolution
1356 of 2012
Management of safety and health System
Law 1562 of 2012 and Decree1072 of 2015
Right of association in trade unions
Union of workers classifications
Collective negotiations and collective agreements
Right to strike
Independent contractors
Temporary services companies
Associated labor cooperatives
Inspection, vigilance and control over the labor
intermediation/outsourcing
Article 39 of the Colombian Political Constitution, rticle 353,
354 of the Labor Code
Article 432 and following, article 467 and following of the Labor
Code, Law 1453, 2011.
Article 444 and following of the Labor Code
Articles 71 to 94 of Law 50 of 1990, Decree 4369 of 2006,
Article 34 of the Labor Code.
Law 79 of 1988, Decree 4588 of 2006, Law 1233 of 2008,
Law 1429 of 2010 and Decree 2025 of 2011.
Decree 583 of 2016
Resolution 312/2019 SG-SST implementation process
Law 1955 of 2019 and Decree 1174 of 2020 Social Protection Floor
Law 1221 of 2008 and Decree 884 of 2012
Law 2088 of 2021, and Decree 649 of 2022 Work from Home
Law 2191 of 2022 Labor Disconnection Law
Law 2121 of 2021, and Decree 555 of 2022 Remote Work
Telecommuting
00
Regulatory Framework
16

Address:
Phone:
Web page:
Carrera 7 # 71 - 52 Bogotá, D.C. Colombia
+57 (601) 325 7300
https:/
/phrlegal.com
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