Types of contracts most used by companies in Colombia

Types of contracts most used by companies in Colombia

If you plan to create a company in Colombia, legitimately formalize the incorporation of workers to your company and make clear the labor requirements to be met, it is essential to agree on a contract. If you need help to know how to create a company in Colombia, you can rely on the Bogotá accounting firm to carry out the respective procedures.

What is an employment contract and what types of contracts are the most used in Colombia?

An employment contract is a document in which the natural person agrees to provide a service to another person, under the subjection to someone, obtaining remuneration. When it is necessary that there is a good harmony between worker and employee in legal terms, it is important to know the type of contract to be agreed upon. Below we will explain the types of contracts most used in the country.

1. Occasional employment contract

This contract must not exceed 30 days and must be performed for work other than the common functions of the company. The worker obtains the agreed remuneration and at the end is not entitled to any type of benefit, except in the event of an accident. The duration of the contract can be changed without exceeding thirty days of the original bond. If you require guidance, in our Bogotá accounting office we have efficient staff to help you with this type of procedure.

2. Learning contract

This type of contract has the purpose of learning and introducing the intern to the work environment. The remuneration is called ”support aid”, and it totally depends on an agreement that is carried out between the parties involved. By signing this document, the student will not enjoy social benefits.

If the intern is a university student, he will have the right to receive a salary greater than or equal to the minimum established by law. In the event that the apprentice is not yet a university student, he will have a salary below the minimum as the basis of payment.

3. Civil contract for provision of services

The payment is agreed between the parties, it does not produce an employment relationship nor does it oblige the company to make the payment of social benefits. Durability is by common agreement depending on the work to be carried out. The employee receives a salary that is deducted only for withholding at source.

4. Work or labor contract

This is a contract that begins during a specific task and ends at the time the work is finished. This type of link is used when you hire a worker only to carry out a specific task or project. In addition, according to the provisions of the Ministry of Labor, the worker has rights to all social benefits. However, it can go through a trial period of no more than 2 months, or what is considered to be a fifth of the work it performs. Termination of him without excuses gives rise to compensation.

5. Indefinite term contract

This type of agreement has an established completion date. The worker enjoys all the social benefits that the law establishes, in addition, he has additional benefits, such as, for example, the option of joining business cooperatives. He also enjoys special incentives agreed by each company, with the possibility of requesting loans, credits, among others.

6. Fixed Term Contract

This type of contract has a duration that goes from one day and can reach three years. The worker’s permanence can be updated up to three times. By signing it, he will enjoy all the social benefits that have been established by law. For its completion, a 30-day notice by the employee is essential.

Finally, remember that in a good Bogotá accounting firm there are qualified people willing to provide you with advice when making an employment contract.