Workers’ Rights And Employment Regulations in Colombia 2024

For companies interested in entering the Colombian market or hiring within it, understanding the complexities of workers’ rights and employment regulations is crucial. Understanding all regulations effectively can mitigate legal risks and ensure smooth operations. This blog will provide a comprehensive overview of the current workers’ rights and employment regulations in Colombia for 2024, focusing on key aspects relevant to businesses and HR professionals. 

Employment Contracts

Colombian labor law recognizes several types of employment contracts, including indefinite-term, fixed-term, and work or labor contracts. Each type has specific requirements and implications for both employers and employees as can be seen below.    

1. Indefinite-Term Contracts: Indefinite-term contracts have no fixed end date and must include essential details like job description, salary, and work hours. For employers, this means providing greater job security, making termination without just cause more challenging, and obligating full benefits and severance pay. Employees enjoy long-term job stability and a full range of benefits but face difficulties in leaving without a notice period.
   
   
2. Fixed-Term Contracts: Fixed-term contracts have a specific end date, cannot exceed three years, and must be in writing. Employers benefit from workforce management flexibility and easier termination at the contract's end, with no obligation to renew. Employees, on the other hand, have limited job security, receive benefits proportional to the contract's duration, and face uncertainty regarding renewal.
   
   
3. Work or Labor Contracts: are tied to specific projects or tasks and must clearly define the scope of work. These contracts are cost-effective for employers managing short-term projects, with obligations ending once the project is completed, making termination easier. Employees have job security only for the project's duration, with limited access to long-term benefits and uncertain future employment prospects.

Something to highlight is that all employment contracts must include essential information such as job description, salary, work hours, and duration. Failure to include mandatory clauses can lead to legal disputes. 

Working Hours and Overtime

Starting from July 16, 2023, the maximum legal working hours in Colombia will begin to decrease gradually. The current maximum of 48 hours per week will be reduced by one hour each year until it reaches 42 hours per week by July 16, 2026. The reduction schedule is as follows:

Despite the reduction in working hours, the law ensures that there will be no reduction in employees' salaries or benefits. Consequently, the value of the ordinary work hour will increase proportionally as the total hours worked decrease. Overtime rates remain the same: daytime overtime at 1.25 times the regular hourly wage and nighttime overtime at 1.75 times. Employers must adjust the calculation of overtime, night work, and holiday pay accordingly.

Minimum Wage and Salaries

• Mandatory Benefits: Employees are entitled to additional benefits, including transportation allowances, bonuses, and severance pay. The transportation allowance is of COP 162,000 per month, which represents a 15% increase. 

Employee Rights and Protections

1. Non-Discrimination: Colombian law prohibits discrimination based on gender, race, religion, political opinion, or social origin. Employers must ensure equal treatment and opportunities for all employees.
   
   
2. Health and Safety: Employers are responsible for providing a safe working environment. Compliance with occupational health and safety regulations is mandatory to prevent workplace accidents and illnesses.

Termination of Employment

• Severance Pay: In the event of termination, employees are entitled to severance pay, which varies depending on the type of contract and duration of employment.

Social Security and Contributions

Collective Bargaining and Unions

• Union Rights: Employees have the right to form and join unions. Collective bargaining agreements can establish additional benefits and working conditions beyond the minimum legal requirements.
  
  
• Strikes and Dispute Resolution: Labor disputes may lead to strikes, which are regulated by law. Employers must engage in good faith negotiations to resolve conflicts.

Ongresso: Your Trusted Partner

Choosing Ongresso as your trusted partner for labor law compliance in Colombia offers numerous advantages for your company: