Remote’s guide to employing in

Colombia
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Services available in this country:
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  • Capital City

    Bogota

  • Currency

    Colombian peso ($, COP)

  • Languages

    Spanish

  • Population size

    51,049,498

Services available in this country:
Employer of Record ProductContractor ManagementPayroll
An aerial view of the city of santiago, colombia.

Employment termination in Colombia

Termination process

Either party unilaterally terminating the employment contract must state in writing at the time of termination the cause or motive that led to the termination, except in some special cases.

The termination process must follow rules and regulations set by employment contract law, salary law, and social security regulations. Employers must offer a “fair” reason for terminating the employee in the eyes of the law or risk penalties and fines.

Notice period

The statutory notice period in Colombia depends on the context:

  • Notice is not required if an employee is terminated for misconduct.

  • For workers on a fixed-term contract, written notice must be sent to the employee 30 days before the contract expires.

  • For employees not on fixed-term contracts, 15 days notice must be given when the employee is dismissed for poor performance. In these cases, the employee can respond to the termination within 24 hours to challenge the decision.

Severance pay

In Colombia, the amount a company must pay as severance depends on the nature of termination, the current salary of the employee, and the type of agreement.

In the case of a fixed-term agreement, the severance must be the balance of salary due to the employee up to the last date of the agreement.

In the case of an indefinite agreement, severance varies based on the number of years of service and the current salary of the employee.

  • Employees earning less than COP$9,085,260 (10 times the monthly minimum wage) receive 30 days’ salary for the first year of employment and 20 days’ salary for each additional year.

  • Employees who earn more than 10 times the monthly minimum wage receive 20 days’ salary after one year and 15 days’ salary for every additional year with the company.

Probation periods

Probationary Periods must be in writing. For undefined term contracts and fixed term contracts between one and three years, the maximum probationary period is two months. In fixed-term contracts for less than one year, the probationary period may not exceed one-fifth of the agreed term not exceeding two months.