Colombian Labor Contracts
If you are a foreigner living in Colombia, then you may be wondering about Colombian labor contracts before hiring anyone. It wont be very long before you realize that labor law here are much different than in many other countries (for example, the U.S.) Most foreigners aresuprised to find that even simple jobs such as maids have rights to liquidation payments. It is your responsibility as an employeer to make sure health & workers insurance, pension, uniforms andtransportation are all paid for or you face substantial monetary penalties/fines. The labor ministry and court system generally favor employees when there is a lack of written documentation so it is critical that you follow domestic labor laws and have a signed contract with an employee. Liquidation payments are required by law and range from 20% to 50% of the employees salary depending on various factors.
Running a company in Colombia requires that you are familiar with the various types of Colombian labor contracts you may enter into in order to avoid a costly situation when employees exit or terminate their relationship with you. Some employees will take advantage of those who are not familiar with Colombian labor laws in Colombia (often Americans or other foreigners). For example, an independent worker will agree to a higher hourly rate in exchange for not paying their benefits, but upon termination will claim they are also entitled to back pay for benefits.
Looking for more on Colombian Labor Contracts? Here are similar topics: How to Get Colombia Investors Visa; Corporate Accounting in Colombia; What is Business Startup Law in Colombia?; How to Create a Colombian Corporation; Medellin Virtual Office.
Our legal staff can assist you with drafting a contract which provides you with the necessary legal protection, combined with professional payroll services.
Types of Colombian Labor Contracts:
Replacement of Personnel (replacement of employee out on maternity sick leave)
Seasonal Job (high season employment)
Traditional part-time employment
Project Specific (construction, professional services)
Traditional fixed term full-time employment
Independent Contractor (a professional who can work independently)
Related Legal Services Offered by Colombia Legal & Accounting SAS:
Certified labor cost projections
Labor Court Disputes
Labor liquidation negotiations
Work visas for foreigners
Human resource services
Workers rights
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