If you are a foreigner living in Colombia 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 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.
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:
1. Project Specific (construction, professional services)
2. Replacement of Personnel (replacement of employee out on maternity sick leave)
3. Seasonal Job (high season employment)
4. Traditional fixed term full-time employment
5. Traditional part-time employment
6. Independent Contractor (a professional who can work independently)
Related Legal Services Offered by Colombia Legal & Accounting SAS:
1. Labor Court Disputes
2. Labor liquidation negotiations
3. Human resource services
4. WORKERS RIGHTS Workers rights
5. Work visas for foreigners
6. Certified labor cost projections
