Hiring Talent And Managing Payroll In Colombia

Agreements

• Colombia has ratified several international agreements related to labor and employment, including the International Labour Organization (ILO) Conventions on freedom of association, collective bargaining, and forced labor.
• The Colombian Constitution recognizes the right to work and guarantees freedom of association, collective bargaining, and the right to strike.
• The Ministry of Labor is responsible for enforcing labor laws and regulations, including the inspection of workplaces to ensure compliance.
• In 2016, the Colombian government signed a peace agreement with the Revolutionary Armed Forces of Colombia (FARC), which includes provisions for the reintegration of former combatants into society and the workforce.
• Colombia has free trade agreements with several countries, including the United States and Canada, which include labor provisions to protect workers' rights.
• Discrimination based on race, gender, religion, sexual orientation, or disability is prohibited by law.
• The agreements/document should be in Spanish or if a document is in another language then also it should be translated into Spanish.

Onboarding Process

• Providing a detailed job description and employment contract to the employee.
• Verifying the employee's identification documents, tax ID, and social security number.
• Registering the employee with the social security system and enrolling them in healthcare and pension plans.
• Providing an orientation session that includes information on the company's policies, procedures, and culture.
• Providing training on job-specific skills and responsibilities.
• Assigning a mentor or supervisor to help the new employee adjust to their role and the company.

Minimum Wage

Payroll Cycle

Annual Bonus

Health Benefits

• Enrollment in the national healthcare system provides coverage for medical services, medications, and hospitalization.
• Employer contributions to the employee's pension fund provide some healthcare coverage.
• Workers' compensation insurance provides coverage for work-related injuries or illnesses.

Working Hours and Overtime

• Work hours: Employees have to work 48 hours a week and 8 hours per day for 6 days.
• Break: Employees are entitled to a 15-minute break for every four hours of work, and a one-hour lunch break for workdays that exceed six hours.
• Overtime: Overtime work is permitted, but must be compensated at a higher rate than regular hours. The overtime rate is typically 25% higher than the regular rate for daytime work, and 75% higher for nighttime work.

Social Security

Taxes for Employees

Termination

• Termination by mutual agreement between the employer and employee.
• Termination due to expiration of the employment contract.
• Termination due to resignation by the employee.
• Termination for just cause, such as serious misconduct, fraud, or insubordination.
• Termination without just cause, which requires the employer to pay severance to the employee.

Severance Pay

Employees or Contractors

• Employees are individuals who provide personal services to an employer, under the employer's direction and control, in exchange for a salary or other compensation. They are entitled to certain legal protections, including social security benefits, paid time off, and severance pay.
• Contractors are individuals or businesses who provide services to a client or customer, using their methods and resources, and who are not under the direction or control of the client or customer. They are not entitled to the same legal protections as employees.
• Misclassifying an employee as a contractor, or vice versa, can result in penalties for the employer, including fines and legal action by the affected employee or contractor. Employers should carefully evaluate the nature of their relationship with each worker to determine their correct classification under Colombian law.

Final Words