Learn about labor legislation to invest in Colombia

Learn about labor legislation to invest in Colombia

Colombia is an ideal destination to invest. Not only because this country has one of the most outstanding economies in Latin America, but also because the government has imposed many facilities for foreign investors. This is in order to promote this activity in the territory and generate sources of employment.

However, if you plan to be part of the registration of companies in Colombia, there are a series of requirements in terms of labor legislation that you must know to undertake this idea adhering to the corresponding legal framework.

Fundamental aspects of Colombian labor legislation

Labor legislation refers to the set of rules and laws that seek to regulate all work-related activities. It is very important to know the Colombian laws that speak about it. The foregoing is due to the fact that this series of regulations are aimed at guaranteeing justice and healthy coexistence between employers and employees.

We can list some essential aspects that you will have to consider before registering a company in the country:

  1. Duration of the employment contract. In Colombia, the duration that any employment contract can have is perfectly well stipulated. There are primarily three modalities. The first is the indefinite term. In this modality there is no established period of duration. The second is the fixed term, which may not last more than 3 years and finally, the contract for a specific project, which will last for the period of execution of such project.
  2. Duration of the working day. According to what is established in the Colombian Labor Law, the maximum working day will be 8 hours a day and no more than 48 hours a week. At least one day of rest is mandatory. In the specific case of overtime, it is possible to agree with the worker in this regard, but these hours must be remunerated to the employee with an increase of 25% in the case of daytime hours and 35% for night hours.
  3. The remuneration. This is subject to the capabilities and skills of the worker. However, it must not be less than the minimum wage approved in Colombia.
  4. The social security system in Colombia. All employers, by law, are required to make contributions to the Social Security System. These payments are intended to cover pension expenses, occupational risks and / or health.
  5. Payment of taxes. This is an indispensable requirement. The employer must pay taxes corresponding to the remuneration that he receives monthly. In addition, he must calculate those generated by the work activity of his workers, deduct them from his payroll and report them to the corresponding authority. In some cases, it is also necessary to calculate, itemize and pay the pertinent taxes contributions.
  6. Rules for hiring foreigners. The employment contract to be executed within Colombia must be governed by Colombian law. The latter is regardless of the nationality of the employer or the employee. Also keep in mind that, to hire foreign personnel, both you and your employees must have their immigration status in order. Likewise, it is the employer’s obligation to ensure that this situation is maintained in accordance with the regulations.
  7. The employer should consider the payment of benefits to workers. Such benefits may be, as appropriate, assistance for transportation, uniforms, and footwear; social benefits of law such as unemployment and service bonuses and some productivity bonuses or those related to the fulfillment of labor goals.

It is of the utmost importance that you are informed about the labor legislation. Especially if what you want is to invest by creating any type of company. Although there is a well-defined set of requirements, investment promotion is today a reality in Colombia.