employment law overview colombia 2021-2022

| 1 employment law overview

2021-2022 / colombiaan alliance of employers’ counsel worldwide

employment law overview colombia 2021-2022López & Asociados Abogados / Proud Member of L&E GLOBAL

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table of contents.

i. General overview 03ii. HirinG praCtiCeS 05iii. employment ContraCtS 06iv. workinG ConditionS 08V. Anti-DiscriminAtion LAws 10vi. pay eQUity lawS 12vii. SoCial media and data privaCy 14 viii. termination of employment ContraCtS 15iX. reStriCtive CovenantS 18X. tranSfer of UndertakinGS 20Xi. trade UnionS and employerS aSSoCiationS 21Xii. employee BenefitS 24

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i. general overview

2. Key Points•Employee-legislationinColombiaisdivided(duetoitsimportance)intoacompilationofparticularrules for each specialty: labour rules, socialsecurity,proceduralrulesandemploymentlaw.

•Evenwhenemployment contracts, as a generalrule, are considered an indefinite term,Colombianlabourlawisflexibleincomparisontoother countries, as itprovides thepossibility touseflexibleformsofemploymentwithoutmajorrestrictions.

•Colombian labour law provides high flexibilityregarding dismissal. However, in recent yearsthecaselawhasdevelopedgreaterprotectiontopreventpossiblediscriminatorysituations.

•ForeignersareonlyallowedtoworkinColombiathroughaworkpermitorwitharesidencepermitif they are planning (or are currently) to staypermanentlyinthecountry.

•Constitutional actions (“Tutela”) demandingimmediateprotectionoffundamentalrightsisanimportantsourceforlabournorms,asaresultoftheinterpretationofthewrittenlabourrules.

3. legal frameworKLabour law normativity is provided by theConstitution(Fundamentalemployees’rights)andthelaw.BillscanonlybeissuedbytheCongressand/orthePresidentinexerciseofexceptionalpowers,but does not allow for the municipalities and/ordepartmentstoissuenormativityregardinglabourmatters. The Ministries as part of the executivepowerareallowedtoissueDecreestodevelopthecontentofalaw,butnottomodifyitorderogateit.Inparticular,theMinistryofLabouristhehighestexecutiveauthorityregardinglabourmatters.

ThePensionsandContributionsControlUnit(UGPPbyitsinitialsinSpanish)playsalsoanimportantroleas an audit governmental body, which exercisescontrol regarding contributions to the socialsecuritysystem.

ThemainframeworkforlabourlawinColombiaisprovidedbytheColombianLabourCode(CSTbyitsinitialsinSpanish)issuedbytheLegislativeDecree3743of1950.Despiteitslongevity,theLabourCode

1. introductionColombianlabourlawisgovernedmainlybytheLabourCode,whichdatesfrom1950.Theapplicabilityoftheserulesisdone(directly)throughthelaw.Thoughcollectivelabourlawruleshavenotexperiencedanysignificant changes since 2008, there currently exists a segment of ´legal unity´ in Colombia,which is animportantdynamicintheemploymentrelationsregardingtradeunions.

Colombianlabourrulesandprinciplesarenotonlyconsideredapublicpolicyrule,butmostoftheseprinciplesalsohaveaconstitutionalhierarchy,togetherwiththeInternationaltreatiesorconventionsthatrecognisehumanrightsratifiedbyColombia.Theconsequenceofthissituationisthatemployerscannot(evenwiththeemployee’sapproval)provideconditionsworsethanthoserecognisedbythelaw,theconstitutionoraninternationaltreatyorconvention,whichrecogniseshumanrightsratifiedbyColombia.

Effortshavebeenmade toaddflexibility to theColombian labourmarket tomatchglobalised standards.Threemainreformstothelabourruleshavebeenmadetoaccomplishthisobjective:the50Actof1990,the789Actof2002andthe797Actof2003.



hasbeenthesubjectofmodificationsmainlytoaddflexibilitytothelabourmarkettoadjustColombia´srules with regards to a more globalised world.

In 2015, the government issued the1072Decree(Regulatory Decree of the Labour Sector) tocondenseallexistingnormativityregardinglabourmattersinauniquedocumenttoeasetheiraccess.

TheConstitutionalCourt and the SupremeCourt,besides the fact that Colombia has a continentallegal system, play a key role in Colombian legalframework as the Constitution and the lawestablishes precedent as mandatory for inferiorhierarchicaljudgestocomplywith.

4. new develoPments •Thewidespreaduseofoutsourcinghaspromptedthe discussion over potential limitations onthe possibility to outsource activities directlyrelatedtothecompany’scorebusiness.In2018,the Ministry of Labour decided to derogatea Decree issued by the same Agency, whichestablishedstricterrulesonoutsourcingandtheresponsibilitiesfromthecontractor.

•Due to the recent presidential elections(President Ivan Duque has been in Office sinceAugust 2018), there are expectations for threemain reforms in labour lawmatters: (i) Pensionreform. (ii) Formalisation reform (self-employedpersons who are not covered by any socialsecurity scheme). (iii) Reform on the collectivebargainingprocedurerules.



ii. Hiring Practices 1. requirement for foreign emPloyees to worK Every foreign person needs a special permit or´VISA´ to perform his services in Colombia. Therequirements for a foreign employee to performhis services inColombiawas recently changedbythe6045Resolutionof2017.Todeterminewhichcategoryor specialpermitmustbe requested forthepotential foreignemployee, it is important toestablish whether the service to be performedby the foreigner is temporary (short duration) orpermanent (long duration). However, there arespecial considerations for foreignemployeeswhohaveaproper residentVISA.Aworkpermit foraforeign employee which was recognised for thissolepurpose,onlyallowstheemployeetoperformthe services for the position, company and/orprofessionwherewiththeVISAwasauthorised.

2. does a foreign emPloyer need to establisH or worK tHrougH a local entity to Hire an emPloyee?In application to the principle of reality over theformalities,alocalentityisnotneededtoconsidertheexistenceofanemployment contract.A localentity may need to be established in Colombiato comply with certain obligations regardingcontributionstothesocialsecuritysystem.

3. limitations on bacKground cHecKsExpressprohibitionsoverbackgroundchecksinthelegislationincludethefollowing:

•HIVtestsorconditions.•Pregnancytest.•Mandatorymilitaryserviceapproval.•Unionisedcondition.•Diseasesordisabilities.•Blacklists.

In general, it must be said that any backgroundcheck that might be considered discriminatoryis prohibited, unless and objective justification isproven.Also,dataprotectionlegislation(the1581Actof2012)providescertainrestrictionsovertheinformation potential and former employers canpublishaboutcandidatesandformeremployees.

4. restrictions on aPPlication/interview questionsEmployersareprohibitedfromaskinganyquestionthat may be considered discriminatory. Anyquestion or restriction on the application of acandidateregardinghisage,sexualorientation,civilstatus,religiousbeliefs,politicalopinion,language,race, diseases, unionised condition or any otherconsideration that does not have any relationwiththepositiontobeperformed,andmightleadto a discriminatory ground, must be avoided. Inparticular, employers are forbidden from askingpotential candidates to perform HIV and/orpregnancytestsasaconditionfortheapplication,unlessthisconditionisprovingtobeincompatiblewiththepositionthepersonappliedfor.



iii. emPloyment contracts1. minimum requirementsEmploymentcontractsaredeemedassuchiftheyreunite threeconditions: (i) servicesareprovidedbythepersondirectly;(ii)subordinationfromtheemployee towards the alleged employer; (iii) apaymentasa retributionof the serviceprovided.If thesethreeconditionsaremet therelationshipwill be considered as an employment contract,disregarding the name or agreement the partiessigned.Employmentcontractscanbebothverbalandinwriting.

However,inverbalcontractsthepartiesmustagree,at least,on the followingpoints: (i) thenatureoftheservicetoprovide;(ii)theamountandformofthecompensation;(iii)thecontract’slength.Apartfromthegeneralrequirementsfortheexistenceofan employment contract, some contractual typesdemandspecificrequirementstobeconsideredassuch.

2. Fixed-term/Open-ended contractsInadditiontohavingtocomplywiththegeneralaswell asany specific requirements thatmayapply,fixed-term contracts are obliged to be in writingto be considered as such. Fixed-term contractscan be signed with any employee, whether theservice provided can be considered permanentor temporarywithin theorganisation. The labourcode establishes that the fixed-term contractlength is free for theparties to determine, but itcannot exceed three (3) years. There is also nolimitation for the possibility of successive fixed-termcontractsorrenewals.

However,inthecaseoffixed-termcontractsagreedforan initialperiodof less thanone (1) year, thelaw establishes a limitation of three successiverenewals of the initial contract, after which theperiodofthecontractwillbeconsideredforatleastone(1)year,butcanberenewedindefinitely.

Whilethelabourcodedoesnotestablishtheneedtoargueacausetoterminatethecontractbytheexpiration date, the case law has prohibited thetermination of the employment contract whenthedecisioncanbedeemedtohaveresultedfromdiscriminatoryreasonsorinfringesuponasuperiorhierarchical right.

3. trial PeriodThetrialperiodmustbeagreedinwriting.Itslengthvariesdependingonthetypeofcontractagreedbytheparties,butcannotexceedinanycasetwo(2)months.Forfixed-termcontractsordefiniteperiodones (i.e.employment contracts for completingaspecifictaskortheoccurrenceofaspecificevent)thetrialperiodcannotexceedaone-fifthpart(1/5)oftheterminitiallyagreed.Whenconsideringtheexistenceofsuccessiveemploymentcontracts,theparties cannot agree to trial periods, but for thefirstcontract.

4. notice PeriodColombian legislation only provides, in general,the need of a period of notice by the employerin the event to terminate a fixed-term contractby itsexpirationdate.Theemployer isobliged tonotify the employee of his decision to terminatethecontractbyitsexpirationdateatleast30daysbeforetheoccurrenceofthetermagreed.Incasetheemployer fails tocomplywiththeperiod,thefixed-termcontractwillbe renewed for thesame



termthantheinitiallyagreed.Whiletheemployee,according to the law, is also obliged to complywithaperiodofnoticeinthesametermsthantheemployer,thisruleisnowadaysnotenforceable.

Insomespecificcases,thelegislationprovidestheneedtocomplywithaparticularperiodofnoticetoterminatethecontractallegingacauseor“justacausa”.

For employees considered to be the subject of aspecialprotection(i.e.disabledpersons,pregnantemployees, certain unionised employees) theemployer needs to observe an ‘a priori´ controlproceduretoterminatethecontract.Althoughthisis not deemed to be a period of notice, it oftenrequires the observation of a notification to theemployeeoftheprocedurethatwillbefollowed.



iv. worKing conditions 1. minimum worKing conditionsEmployeesinColombiaenjoytherightsestablishedby the Political Constitution, the ILO conventionsratified by Colombia, the Labour Code and anyotherregulationthatdevelopslabourrules.

Owingtothepublicpolicynatureoflabourstandardsandsocialnorms,thepartiescannotagreetotermsthat would circumvent, contradict or otherwisebe inoppositiontotherightsguaranteedbysuchpolicies.Normayanemployeerenouncealabourrightgrantedbylaw,buttheemployerisallowedtoprovidetheemployeewithbenefitsandrightsthataremorefavourablethanthoseestablishedbylaw.

2. salaryThe statutory minimum wage for employeeswho work the maximum working time for 2018is $781.242 COP with a mandatory transportallowance of $88.211 COP (mandatory foremployeeswhoearnsupto2timestheminimumwage).Thisdoesnotpreventthepossibilityfortheemployer to provide a superior minimum wagewithin its organisation whether by its unilateraldecisionorbycollectiveagreement.

Compensation regarded as salary comprises notonly the employee’s agreed fixed and/or variablesalary, but anypaymentwhich is recognised as aretributionfortheservicestheemployeeprovidesto the employer, regardless of its designation, inthe case of commissions, habitual bonuses andovertimeworkpayments.Thesalarycanbeeitherinkindorcash,butthesalaryinkindcannotexceed30%ofthetotalsalaryagreed.

Thesalarycanalsobeagreedonanylegalcurrency.The employee is entitled to ask the payment inColombian Peso (COP), in which case it must bedoneat theofficialexchange rateon theday thepayment must be issued by the employer. Foremployees who are paid ‘per day’ the salary incashwagepaymentcannotexceedoneweek.Foremployeeswhosesalaryisbasedonamonthlyfee,theirpaymenthastobedoneat leastonceeverymonth.

The Labour Code also provides the possibility fortheemployertorecognisenon-salarypaymentsaspartofthecompensationoftheemployee(cannotexceed 40% of the total compensation for socialsecurity purposes). The importance to delimitatethese two concepts is so that only the paymentsregardedassalaryserveasabaseforthecalculationoflegalbenefitsandsocialsecuritycontributions/benefits.

Integratedsalary:foremployeeswhoearnasalaryequivalenttoatleastten(10)timestheminimumwageormore,an“integrated”salarycanbeagreed;theagreementmustbe inwriting.Theemployeewill receive a monthly payment which includestwo factors: i) the personal service economicretribution, and ii) afixedamountof at least the30%ofthesalary,whichcompensates inadvancestatutorybenefits,overtimework,workonSundaysand anyother payment expressly included in the“integrated” salary agreement, except vacations.Therefore,thetotalmonthlyminimumintegratedsalaryamountis13timestheminimumwage.

3. maximum worKing weeKThe ordinary working time cannot exceed 8hours per day and 48 hours per week, with the



employeebeingentitledtoamandatoryrestday,normally on Sunday. However, the law allows forthe parties to agree that the daily working timecanbedistributedbetween4and10hoursperdayensuring themaximumworkingweek (48hours).The dailyworking timemust be distributed in atleast twoparts,with a rest periodbetweenbothof them. This rest period between both sectionsis not considered part of the dailyworking time.Colombian labour law also provides differentformstodistributethemaximumworkingtimeinaccordancewiththeILOconventionsratifiedbythecountryandthedifferentindustries’needs.

4. overtimeOvertime hourly work compensation rate is25% over regular hour payment. The followingemployees are not entitled to overtime workcompensation: (i) employees who earn an“integrated” salary (only possible for employeeswhoearnmorethantentimestheminimumwage)and; (ii) employees that occupy trust positions(However,theyareentitledtoreceiveNighthoursandSundaysovertimepayments).Employeeswhoworknighthours(from09:00PMto06:00AM)areentitledtoaspecialoverchargeof35%overtheirregular hourly compensation, disregarding otherspecialcompensationslikeovertimecompensation.WorkonSundaysand/orpublicholidaysmustbepaidwith an overcharge of 75%over the regularcompensation.

5. HealtH and safety in tHe worKPlace

a. employer’S oBliGation to provide a HealtHy and Safe workplaCe

The employer is expressly obliged to providehis employees with a safe workplace and thenecessary and adequate elements and tools topreventworkaccidentsandprofessionaldiseases.Since 2014, every employer or contracting partymust implement the “Safety and Health atWorkManagementSystem”toensure theenforcementof all health and safety at work legislation, theimprovement of the work environment and

conditions,andthecontrolofanyhazardordangerintheworkplace.Thissystemincludesnotonlytheemployeesof a company, but also its contractorsandsubcontractors.

B. Complaint proCedUreS

The Ministry of Labour through the labourinspectorate(administrativeauthority)isinchargeof the Health and Safety complaints. The formalprocedure may come from a direct complaintby an employee (or anonymously) regarding analleged breach of a Health and Safety procedureby the employer. The Labour Inspectorate is alsoentitledto,unilaterally,makeavisittoanemployeror request information of his “Safety and Healthat Work Management System” and initiate acomplaintprocedureifhefindsananomalyintheinformationprovided.

C. proteCtion from retaliation

ColombianlabourlawdoesnotprovideanyspecialprotectionspecificallyforemployeeswhopresentaformalcomplaintagainsttheiremployerforfailingtocomplywiththeHealthandSafetylegislation.



V. Anti-diSCriminAtiOn laws1. brief descriPtion of Anti-diSCriminAtiOn lawsThe Colombian Political Constitution recognisesthe right of equal treatment and the prohibitionof discrimination on basis of sex, race, nationalorigin, language, religion or ideology. In thelegal framework, Colombia has provided specialprotection for other groups like disabled people,unionised employees and pregnant women. TheColombianConstitutionalCourthasdevelopedthespecialprotectiononanti-discriminationlawsevenfurther for other groups.

2. extent of Protection Employers are prohibited from anymeasure thatcould be considered discriminatory against hisemployees(orpotentialone)ineveryaspectoftheemployment contract, including any question orconductthatcouldbeconsidereddiscriminatoryina hiring process (i.e. a request for anHIV and/orpregnancy testwithoutanobjective justification),whether thediscrimination is through a direct orindirectconduct.

Anti-discrimination laws in Colombia have beendevelopedmostlythroughcaselaw,byreinforcingthe protection for these special groups to otherforms of employment. The protection extentis normally the prohibition of dismissal if thetermination leads to a discriminatory ground orinfringesuponasuperiorhierarchicalright.

Private sector employers, while encouragedthrough some benefits, are not subject to anymandatoryaffirmativeactionlaw.

3. Protections against HarassmentSince 2006, Colombian legislation provided aspecial scheme forprotectionagainstharassmentin the workplace. In general, harassment in theworkplace is considered any conduct persistentandprovable,executedonanemployeeaimedtoinstill fear, intimidation, terror or anxiety, causeharmonhiswork,demotivation,ortheemployee’sresignation.

Protection against harassment includes theobligationforthecompanytocreateaspecialbodywithintheorganisationtoanalysetheharassmentcomplaints, constituted by employees’ andemployerrepresentatives.

Employees who filed a complaint as victims ofharassment cannot be dismissed without a faircauseinthefollowingsixmonthsaftertheformalcomplaint. This special protection also appliesto the employees who served as witnesses in aprocessofharassment.

4. emPloyer’s obligation to Provide reasonable accommodations Colombian legislation does require the obligationfor any undertaking to compel with certain legalminimumstandards,whichmay include theneedto provide certain facilities for disabled persons,whethertheyareemployeesorvisitors.Inadditionto this, the law requires the employer to complywiththecompetentauthority’srehabilitationreport



regarding his disabled employees, including anyergonomicor(special)workplaceaccommodation.

From 2019 or 2022 (depending the number ofemployees), employerswill beobliged toprovidespecial facilities inside the workplace for nursingemployees.

EvenwhiletheColombianConstitutionrecognisesthe freedom of religious belief, there is not aspecific provision that obliges the employer toaccommodate the workplace for the employee’sreligiouspractices.Nevertheless,thecaselawhasrecognised the possibility for the employee toexcusehimself(beabsent)fromworkingoncertaindaysforreligiousreasons.Specialregulationsexistregardingthismatterforemployers intheoilandminingsector.

5. remediesEmployers can implement any kind of unilateralinternal policy that promotes anti-discriminatoryrules for his employees, providers and/orcontractors.

In case an employee is found responsible for adiscriminatory behavior, it is usually possibleto terminate the contract without a severancepaymentfortheemployee. Inthespecificcaseofharassmentintheworkplace,the1010Actof2006obliged the employer to create a special internalbodytoanalysetheharassmentcomplaints.

6. otHer requirements Whilecompanieswhichhireemployeesinaspecialsituation(i.e.disabledpersons)canaccesscertainbenefitsfromthegovernmentliketaxrelief,thereisnomandatoryquotasoraffirmativeactions fortheprivatesectoremployers. Despitethefactthatitisnotnecessarilylinkedwithananti-discriminatoryrule, in theoil sector thereexistsquotas forprivate sectoremployers tohireemployees fromtherespectivegeographical zoneforthenon-qualifiedjobs.



vi. Pay equity laws 1. extent of Protection Colombia has a constitutional mandate forguaranteeingequaltreatmentandpaybyprotectingagainstunequaltreatmentbasedongender,race,nationality, religion, opinion or political affiliation(art 13 of the Constitution), which has beenconfirmedwiththeratificationofILOConventions100and111.

In fact, since 1945, article 143 of the ColombianLabourCodeestablishedthe“equalremunerationforequalwork”principle,whichwasreplacedwiththe“equalremunerationforworkofequalvalue”principle through Law 1496 of 2011. In addition,Law1496createdsomemechanismstoguaranteeequal pay, labour integration between genders,and avoid any form of discrimination. To complywiththeregulation,everyemployershouldfollowthe legal remuneration assessment factors whenbargainingaboutsalarywiththeiremployeesandkeep employee records with specific informationsuchasjobposition,gender,duties,remunerationandtypeofagreementorcontract.

Finally andparticularly regarding the rural sector,Law731of2002establishedaspecialmandateforeliminatinggenderremunerationinequalityinthissector,aswellassomeconcreteactionstoachieveit, including, among others: the designment ofspecial training and sensibilisation programs; thesocial commitment toward women stamp; andthe implementation of a culture of equal labourconditions.

2. remedies Regardingspecialremediesorpenaltiesforviolatingtheequalpayprinciples,theemploymentregulationallowsemployeestofileaspecialchargebeforetheMinistryofLabourorthecourts,basedonpayorcompensationdiscrimination.Iftheunequalpayisproventoprovokethedemotivationorresignationoftheemployee,thiswouldconstitutegroundsforlabourharassmentclaims.

In addition, and even though the employmentregulationdoesnotestablishaparticular remedyfor violation of the “equal pay remuneration forworkofequalvalue”principle, through individualcomplaintsbeforetheCourtsoreventheMinistryofLabour,orbythecollectivebargainingprocess,employees could compel the employer to act inaccordancewiththeequalpayprinciple.Moreover,iftheemployeecouldclaimandproveabreachofobligation by the employer regarding the recordkeepingbeforetheMinistryofLabour,theemployermightbefinedupto150monthlyminimumwages.

Finally,regardingspecialpenaltiesforviolatingtheequalpayregulation,theColombianCriminalCodewasmodifiedtoincludethearbitrarylimitationofany right based on racismor discrimination, as anewcrimethroughLaw1482of2011,punishableby imprisonment for a term between 12 to 36months, and a fine between 10 to 15 monthlyminimumwages.

3. enforcement/litigation Despite the lack of a reporting obligation foremployers, as well as the fact that most of thesalary clauses areprotectedunder confidentialityagreements, a strong judicial precedent relatingto equal pay claims has been established bythe Supreme Court of Justice. According to theCourt, the grounds to assign different salaries toemployees in the sameposition should bebasedonthequalityofthework,ratherthanonmerelyacademic degrees or job seniority. Once theexistenceofworkofequalvalueisevidencedinaclaim, the employermust credit the existence ofobjectivefactorstojustifypaymentdifferences.

Furthermore, the equal pay principle could beprotected through constitutional actions, as atransitorymeasure(calledinSpanish“accionesdetutela”),andcollectiveagreements.



4. otHer requirementsAs mentioned before, every employer shouldkeepemployeerecordsspeciallymadeforgenderequality purposes, and present them to theInspectoroftheMinistryofLabourforassessmentinthecourseofcarryingoutgenderauditservices,alongwithevidenceofeverypracticeorprocedureimplemented in order to guarantee equal pay.However, there is no obligation to periodicallysharethisinformationwiththeauthorities.



vii. social media and data Privacy 1. restrictions in tHe worKPlaceRestrictionsontheuseofelectronicdevicesandtheinternetforpersonalpurposesintheworkplaceareallowed,withtheunderstandingthatsuchfacultyisunderthescopeof thesubordinationpowerofthe employer. The Constitutional Court considersthat the legislation and the case law allow theemployertonotonlylimittheuseofsocialmediaand electronic devices in the workplace, butalso to exercise control to verify this situation, inaccordancewiththeprincipleofreasonabilityandproportionality.Inadditiontothis,the1581Actof2012establishesgeneralrestrictionsfortheuseandadministrationofdatabasesincludinginformationregardingemployees.

a. Can tHe employer monitor, aCCeSS, review tHe employee’S eleCtroniC CommUniCationS?

The employer can monitor and access theemployee’s electronic communications or anyother application as long as they are related tothe employee’s position or the electronic mailand/or application is provided by the employerasaworking tool.Anycontrolon theemployee’selectronic communications must attend to theprinciple of reasonability and proportionality, inordertoavoidapossiblebreachoftheemployee’sintimacy.

2. emPloyee’s use of social media to disParage tHe emPloyer or divulge confidential informationThere is also no specific provision in Colombiaregarding thismatter. However, the case law hasunderstood thatwhile socialmedia ispartof theemployee’sintimacycircle,andthereforecannotbemonitoredbytheemployer,therearesomeactionsthat may cause harm to the employer throughsocialmedia.Theuseofsocialmediatodisparagetheemployerortodivulgeconfidentialinformationaboutthecompanymaycausedamagestohispublicimageandhis interests,whichthenallowshimtoinitiatedisciplinarymeasuresasaconsequenceofthissituation.

In any case, the divulgation of confidentialinformation by the employee is considered byColombianlabourlawasanexpressprohibitionandcanleadeventuallytothepossibilitytoterminatetheemploymentcontractbytheemployer,alleginga fair cause.



viii. termination of emPloyment contracts 1. grounds for termination In Colombia, employment contracts may beterminated by any of the parties at anymomentwith immediate effects (as a period of notice isonlyneededforfixed-termcontractswhenendedby the expiration date) and without it beingnecessary tomention the reasons that led to thetermination, unless a fair cause is alleged for thedismissal. Grounds for termination in Colombianlegislationcanbedividedintothreecategories:(i)Legalgrounds.(ii)Terminationwithafaircause.(iii)Terminationwithoutafaircause.

On legal grounds one can find those terminationgrounds which are unrelated to the behavior oftheemployee,butrathertheoperationofthelawthatmandatestheterminationofthecontract. Inthiscaseonecanfindthedeathoftheemployee,the expiration date of the term initially agreedin a fixed-term contract and/or the meeting ofthe condition or culmination of the task in theemployment contracts by a definite task. In thiscase, as the employment contract ends becauseof the operation of the law, the employee or hissurvivorsarenotentitledtoaseverancepayment.

The terminationwith a fair cause refers normallyto situations related to gross misconduct by theemployee,withtheexceptionoftherecognitionoftheinvalidityoroldagepension.Thesefaircausegroundsaredefinedexplicitlybylawandthepartiescannotaddsupplementarygroundsasabasis forthecontracttobeterminated.However,thepartiesdohavethepossibility,throughthecontractorthecompanymanual,todefinesituationsthatbytheirnaturecanbeconsideredasseriousmisconduct.

The termination without a cause includes allsituations that are not considered as a legal

cause or a fair cause. Only in the termination ofan employment contract considered as withouta cause, is the employee entitled to a severancepaymentinaccordancewiththelaw.

Theterminationwithoutacausedoesnotrequireaperiodofnotice,butfindslimitationsforitsuseinsituationsthatmightbeconsideredarbitraryorinfringesuponasuperiorhierarchicalrightnormallyrelated to employees under special protection(i.e. Union representatives, pregnant employees,disabled persons). A termination in thesesituations can be considered void; and therefore,theconsequencemightnotbe the recognitionofaseverancepayment,butthereinstatementoftheemployee.

Asmentionedbefore,employeesarealsoentitledto terminate the employment contract at anymoment, for any reason, or alleging a fair cause.In case the employee opts to terminate hisemployment contract, alleging a breach by theemployer (faircause), theLabourCodemandatestheobligationtopayaseverancepaymentasifthecontractwereterminatedwithoutafaircause.

2. collective dismissalsThe 50 Act of 1990 establishes the requirementsfor a collective dismissal, which in Colombia,appliestoadismissalthataffects,inaperiodofsixmonths,anumberofemployeesequalto:(i)30%of the total employees in companieswith a totalshareofemployeeshigherthan10butlowerthan50; (ii) 20%of the total employees in companieswithatotalshareofemployeeshigherthan50butlowerthan100;(iii)15%ofthetotalemployeesincompanieswithatotalshareofemployeeshigherthan100but lower than200; (iv)9%of the totalemployees in companies with a total share ofemployees higher than 200 but lower than 500;(v)7%ofthetotalemployeesincompanieswitha



totalshareofemployeeshigherthan500butlowerthan1000 and; (vi) 5%of the total employees incompanieswithatotalshareofemployeeshigherthan1000.

The percentages mentioned above are onlycalculatedwhenconsideringterminationswithoutafaircause,notthoseallegingalegalgroundorafair cause.

Foracompanytoproceedwithacollectivedismissal,itneeds,beforehand,toreceiveauthorisationfromtheMinistryofLabour.

3. individual dismissalsIndividual dismissals, unlike the collectivedismissals,donotrequireapreviousauthorisationbyanyauthority,astheemployerisfreetoterminatetheemploymentcontractatanytime.However,forthedismissalofanemployeeundersometypesofspecialprotection,anauthorisationfromthelabourinspectorateisneeded(pregnantwomen,disabledemployees).Inthecaseofemployeesunderspecialprotection for their unionised condition (“fuerosindical”) a previous authorisation is required bythe labour judge. A termination with or withoutcauseshouldbecommunicatedtotheotherpartyinwritingandentitletheemployeetothepaymentofhissalaryandsocialbenefitsuntilhislastdayofwork,anddependingonhisterminationgrounds,aseverancepaymentmightbepaid.

a. iS SeveranCe pay reQUired?

Onlyforadismissalwithoutacause.Theamountoftheseverancepaymentdiffersinseveralfactorssuch as seniority, type of contract and amountof the salary. Severance payment in Colombiadoes not have a limitation in the amount tobe recognised by the employer. The severancepayment for employees with a definite periodcontractisequaltothesalaryofthetimeremainingfortheexpirationdate,disregardingtheemployee’sseniorityorsalary.Incaseofanemployeewithanindefiniteperiodcontract,therearecurrentlythreesystems applicable, depending on his seniority inthecompany:

For employees hired before 1 January 1981the system applicable is the 2351 PresidentialDecree of 1965: these employees have a special

stability regime which excludes the possibilityof termination without cause. Nevertheless, inexceptional cases whenever this termination isapplicable,theseverancepaymentcorrespondsto45daysofsalaryforthefirstyearofserviceand30daysofsalaryforeachsubsequentyearofserviceor pro rata.

For employees hired before 28 1992 the systemapplicable is the 50 Act of 1990: in this regime,severance payments correspond to 45 days ofsalaryforthefirstyearofserviceand40daysforeachsubsequentyearofserviceorprorata.

Foremployeeshiredafter28December1992thesystem applicable is the 789 Act of 2002: in thisregime, the severance payment formula dependson theemployee’s salary amount. Foremployeesthat earn less than ten (10) times the minimumwage, the severance payment corresponds to 30daysof salary for thefirst yearof service and20days for each subsequent year of service or prorata. For employees that earn ten (10) times theminimum wage or more, severance paymentscorrespond to 20 days of salary for the first yearofserviceand15daysforeachsubsequentyearofserviceorprorata.

Thereferencetocalculatetheseverancepaymentmust take into account the last fixed salary. Incaseofvariablesalary,thereferencewouldbetheaverage of the salaries earned in the last twelvemonths. Colombian legislation provides a fixedsystemof calculation for the severance payment.Nonetheless,employeescanclaimmoraldamagesinadditiontotheseverancepaymentprovidedbylaw.

4. seParation agreements

a. iS a Separation aGreement reQUired or ConSidered BeSt praCtiCe?

Colombianlabourlawdoesnotrequireaseparationagreement to terminateacontract.Nevertheless,itallowsitsapplication.Thesekindsofagreementsare not only widespread in the labour market,butaregenerally recommended to terminate the



contract of highexecutives andemployeesunderspecialprotection.

Separation agreements are binding for theparties in those rights which are not consideredas “true and certain” as these rights are neitherrenounceable nor negotiable by the employee.For example, an employer can negotiate, in aseparation agreement, the damages caused froma late payment of salaries and/or social benefitsto his employees, but cannot sign a separationagreementtorenouncehisobligationswithregardstothemandatorycontributionshemustpay,foranemployee,tothesocialsecuritysystem.

B. wHat are tHe Standard proviSionS of a Separation aGreement?

Thestandardprovisionsare:(a)Aclausewheretheemployeegrantsgeneralreleasetotheemployer,hissubsidiariesand/orheadquartersfromanyclaimthat might arise from the employment contractwiththecompanyandspecificallythesituationindiscussion;(b)Inorderfortheagreementtohavea res judicataeffect,mutual concessionsmustbemadebetweentheparties,whichnormallymeansaclauseacknowledginganamountofmoneytoberecognised to theemployee, its formofpaymentandinstalments(ifapplicable).

C. doeS tHe aGe of tHe employee make a differenCe?

No.

d. are tHere additional proviSionS to ConSider?

Iftheintention,throughtheSeparationAgreement,isforsuchdocumenttohavearesjudicataeffect,the agreementmust bemadeby a “transacción”contractora“conciliación”contract;bothrequiremutualconcessionsbytheparties.

In the case of the “transacción” contract, thesubscription ismade only by the parties. On theotherhand,the“conciliación”contractrequires,foritsvalidity,tobeapprovedandsigned,inaddition,bythelabourjudgeorthelabourinspectorate.

5. remedies for emPloyee seeKing to cHallenge wrongful terminationWrongful termination claims are analysed bythe judge as the competent authority. Wrongfulterminationbasedona legal ground (i.e. allegingtheabsenceofacauseforthetermination) leadsto the recognition of the severance payment theemployeewouldbeentitledtoifhiscontractwouldbeterminatedwithoutacause.

Wrongful termination based on the breach of afundamentalright(i.e.discriminationgroundsand/or harassment) might lead to the reinstatementof theemployee in thepositionhewas inbeforebeing dismissed, or an equivalent one, plus thepaymentofthesalariesandbenefitsfortheperiodheremaineddismissed,becauseoftheemployer’swrongfultermination.

6. wHistleblower laws Colombianlabourlawdoesnotincludeanyspecialprovisions or protections for whistleblowers.However,employeeswhoservedaswitnessesinaclaimofharassmentcannotbedismissedwithouta fair cause in the following six months afterthe formal complaint, as long as the claimant iseffectivelyconsideredavictimofharassment.



ix. restrictive covenants 1. definition of restrictive covenantsProvisions on restrictive covenants in Colombianlabourlawarescarce.Thelegislationonlyprovidesrulesfornon-competeclauses.Scholarshavetriedtobringtoemploymentcontractssomerestrictivecovenants normally used for commercial/civilcontracts,undertheassumptionthattheseclausesmay be applicable to employment relationships,as its nature is similar to any other contractualrelationship. Restrictive covenants are thereforeallowed,undersomegenerallimitations.Anyclausethatmaylimittheemployee’srighttowork(whichincludes his right to access new employment) isconsidered ineffectiveandcannotbeenforcedbyajudge,eveniftheemployeeconsentedtotheuseof such a clause.

2. tyPes of restrictive covenants

A. non-compete cLAuses

Article44oftheColombianLabourCodeexpresslyallowsforthepossibilityoftheemployertoagreewith his personnel, on a general prohibitionto provide services in determined activities orthe employer´s competitors. This class of non-competeclausesareonlyallowedbylawwhiletheemployment contract is ongoing. Non-competeclausesforemployeesthataremeanttoapplyaftertheemploymentcontracthasended,areinvalid.

b. non-soLicitAtion of CUStomerS

Such a provision does not exist in Colombianlabourlaw.However,restrictivecovenantsonnon-

solicitation of customers are often used for high-executive employees. Scholars have understoodthatthesekindsofspecificclausesarevalidaslongas they respond to a principle of proportionalityandreasonability. While a clause of this nature may restrict theformer employee’s right to work, a limitation onthe former employee’s possibilities to performactions that might harm the company throughdirect solicitation of customers, are proportionalandreasonabletoprotectthecompanyinterests. In any case, competition law establishes specialprovisionstowardstherestrictionsofconductsthatmightbeconsideredunfaircompetition.

c. non-soLicitAtion of employeeS

These types of restrictive covenants are notnormallyusedforemployeesintheiremploymentcontracts,but ratherbetweencompanies in theircommercial relationships to avoid possible actsof unfair competition. The applicability of theseclauses between companies must attend criteriaof proportionality and reasonability to avoid apossibleviolationoftherighttowork.

3. enforcement of reStriCtiVe COVenAntS – Process and remediesRestrictive covenants may be included in theemployment contract (normally used for non-competeclauses)orinseparatedocumentsduringtheemploymentrelationshiporafterit.Aviolationof a restrictive covenant during the employmentcontract can be subject to disciplinary measures



fromtheemployerandeventuallytheterminationofthecontractwithafaircause.

The violation of a restrictive covenant, whichintendstoapplyaftertheemploymentrelationshipends, can be enforceable through a legal claimagainsttheformeremployee.

4. use and limitations of garden leave Garden leave practice is allowed in Colombianlabourlaw.Theemployercanrestricthisemployeesfromattendingtowork,buttheobligationtopaytheir salary, as if it was a unilateral paid leave,remains.However,thispossibilityfindsalimitationwhenever the request from theemployer for theemployee to receive the unilateral paid leavemay leadtoadiscriminatorymeasureorpossibleconductofharassmentagainsttheemployee.



x. transfer of undertaKings 1. emPloyees’ rigHts in case of a transfer of undertaKingIncaseofatransferofundertaking,theemploymentcontractisnotterminated,suspendedormodifiedaslongastherearenosubstantialchangesintheactivities of the new employer. Therefore, theemployees have the right for their contract toremainwith the same conditions, salary,workingtime,benefitsandthesenioritytheywereentitledtobeforethetransfertookplace.

As the transferred is liable forall labour rightsofthepredecessor,theemployeecanclaimthelabourrights that hewas entitled to before the transfertook place, from either his previous employer orthenewone.

2. requirements for Predecessor and successor PartiesColombianlabourlawdoesnotprovideanyspecialrequirement from a labour point of view, for atransferofundertakingtotakeplace.Thepartiesofthetransfercanagreetoanymodificationsoftheirownrelations,aslongastheseagreementsdonotaffectthelabourrightsoftheemployees.



xi. trade unions and emPloyers associations 1. brief descriPtion of emPloyees’ and emPloyers’ associations The possibility for employers and employees toassociate through trade unions and employers’associationsisguaranteedasaconstitutionalright.While this allows for theexistenceofemployees’and employers’ organisations, employers’organisationsarenot very common,norare theygenerallyusedforcollectivebargaining,butratherfor economical and coordination purposeswithinan industry. Collective bargaining is reserved foremployers (individually considered) and tradeunions.

Therearethreetypesoftradeunions:(i)Companyunion, which gathers employees of the samecompany,regardlessoftheirprofessionorposition;(ii) Industry union, which gathers employees ofthe same economical sector disregarding theirprofession, position or employer; (iii) Gremialunion, which gathers employees of the sameprofessionregardlessoftheirpositionoremployer.Foranyof these typesof tradeunions toexist, aminimumnumberof25affiliatesisrequired.

Employees can affiliate to multiple trade unions,even within the same company. The collectivebargainingprocessmustbedonewitheverytradeunion within the organisation, disregarding theirnumber of affiliates. Nowadays, and as a resultof the Constitutional Court’s case law, there areno specific rules regarding representativeness fortradeunionsforthecollectivebargainingprocess,oranyothermatteronclaimsorconversationswiththeemployer.

2. rigHts and imPortance of trade unionsWhile it is not mandatory to be a member orconstituteatradeunioninColombia,tradeunionsmaynegotiate,onbehalfoftheiraffiliates,tobegina collective bargaining. This process can only beinitiatedbythetradeunion;employerscannotcallforacollectivebargainingprocess.

The result of this negotiation between tradeunion and an employer is a collective bargainingagreement. These documents generally providefor special rules and benefits applicable for theunionisedmembers,andifthetradeunionreunitesthe required majority (this may vary dependingon the trade union representation within thecompany)ofaffiliateswithintheorganisation,thecollectivebargainingagreementcanbeapplicabletoallemployees,disregardingiftheyareaffiliatedornot.

As mentioned above, in Colombia there are nospecific rules regarding representation for tradeunions.Therefore,every tradeuniondisregardingthenumberofaffiliatesenjoysthesamerightsforcollectivebargaining.

Tradeunionmembersmayenjoyspecialprotectionin specific cases (i.e. during the collectivebargainingprocess) and specialpermits forunionpurposes. This is important, because Colombia’slabourlawdoesnotprovideforanylawregardingemployees’ participation in employer’s decisions,other than through trade unions, and thereforetheseorganisationsserveasthemainbodyforthispurpose.



Labour procedural rules allow trade unionsto present claims on behalf of their memberswhenevertheyconsidertheexistenceofabreachofthecollectivebargainingagreement.

Therighttostrikeisrecognisedasaconstitutionalrightanditsexercisemustbemadeinaccordancewithdemocraticprinciples. Ingeneral, strikescancome as a result of three situations: (i) a failedcollectivebargaining process,where its definitionand practice are regulated by law; (ii) as a resultofabreachof legaland/orconventionalrightsbytheemployer(inthiscase,theexerciseoftherightto strike does not require a previous collectivebargaining process); and (iii) strike by solidaritywhereatradeunionclingstothestrikeofanothertradeunion,becauseofeconomicand/orpoliticalreasons.

Limitationsontherighttostrikeapplytoessentialpublicservices,asdefinedbylaw(i.e.publicutilitiessector).

ThepeaceagreementsignedwiththeFARCguerrillaincludes the commitment of the government topropose new legislation related to social protest,whichmaymodifytheactualconditionsoftherighttostrikeinColombia.

3. tyPes of rePresentationColombian labour lawdoesnotestablish any lawregarding the participation of the employees asrepresentatives other than the role that tradeunions serve for their members. While someimprovement has been made in the last decadeto involve employees’ participation, these aremeant for certain cases such as harassment intheworkplaceandhealthandsafetycommittees,andarenot intended toapply to specific rolesofcommunication regarding general decisions thattheemployerisconsidering.

a. nUmBer of repreSentativeS

The representatives of a Trade Union are themembers of its Executive Board, and its quantityshould be established in the Union Bylaws, but

only10ofthemwillhavetheemploymentstabilityrecognised to their position (“fuero sindical”).In addition, every company with at least oneemployeeaffiliated toa tradeunionmusthaveaComplaintsCommittee,fromwhich2memberswillhavethesamestabilitymentionedbefore-“fuerosindical”.

B. appointment of repreSentativeS

TheUnionBylawsshouldestablishthedemocraticmechanismsfortheelectionoftheUnion’sExecutiveBoard members, and such mechanisms shouldguaranteethesecrecyof thevote.Regardless,noemployer representative or company’s directivepersonnelcanbepartoftheUnionBoard.

ThemembersoftheComplaintsCommitteeshouldbeelectedbytheunionswithanyaffiliateworkingfor the employer, using a democraticmechanismestablished by them. In any event, there will beonlyoneComplaintsCommitteeineachcompany,irrespectiveofthenumberofunionswithaffiliatesinthecompany.

4. tasKs and obligations of rePresentativesAs mentioned before, trade unions are thetraditional vehicle for employees to be part oftheemployer’sdecision-makingpractice,which isachieved through a collective bargaining process.Therefore, even when the tasks and obligationsof the Executive Board are not indicated in theregulation,theyshouldbeestablishedintheUnionBylaws with the aim of realising that purpose:acting on behalf of the interest of unionisedworkersbeforetheemployer.

With respect to the Complaints Committee, themainpurposeisfilingcomplaintswiththeemployeronbehalfoftheunionsandtheemployees,eitherasjointorsinglepetitions.



5. emPloyees’ rePresentation in managementEmployees do not have any restriction on beingpartof theBoardofDirectorsof thecompany. Inany case, the employer and their representativeswill preserve the managerial power over theemployees.

6. otHer tyPes of emPloyee rePresentative bodies The1295Decreeof1994establishedtheobligationforeveryemployertoconstituteahealthandsafetycommittee, wherein the number of membersvariesaccordingtothenumberofemployeesoftheCompany. Its composition is by an equal numberof employer’s representatives and employees’representatives.

The 1010 Act of 2006 established a mandatoryharassment committee to address possibleconducts considered as such, and to developactivitiestoimprovetheworkingenvironmentforallemployees.Thenumberofmembersofthisbodyvariesaccordingtothenumberofemployeesofthecompany. Its composition is by an equal numberof employer’s representatives and employees’representatives.



xii. emPloyee benefits 1. social securityEmployersandemployeesmustmakecompulsorycontributions to the Colombian Social SecuritySystem, which protects employees from certainsocialrisks.TheColombiansystemiscompoundedby the subsystemsof healthcare, pension, labourrisksandfamilyallowance.

Employer’s contributions for the social securitysystem average thirty percent (30%) of theemployee’s contributory base income. Thecontribution percentage to the labour riskssubsystemvariesaccordingtothelevelofrisktheemployeefaces(thelevelofrisk,andtheactivitiesframedineach,isdefinedbythelaw).

Employers who declare income tax in Colombiaare entitled to an exoneration of their obligationto contribute to the social security subsystemin healthcare, family allowance and some otherspecific contributions, for their employees whoearn up to 10 times the minimum wage. Suchsavingsmayleadtoanemployer’sfinalcontributiontothesocialsecuritysystemasseventeen(17%)oftheemployee’scontributorybaseincome.

As the social security system is managed bydifferentcompanies,bothprivateandpublic legalnatures respectively, the employee has the righttochoosetheagencyhewantstoaffiliatewithforhishealthcareandpension.Theemployerchoosestheagenciesinthesubsystemsoflabourrisksandfamily allowance, as the contribution is assumedentirelybytheemployer.

The employer is responsible for withholding anddelivering his and the employee’s contributions.Any kind of special information that needs to beprovided to the system involving the employee’ssituation, such as sickness, paid or unpaid leave,maternity,retirementfromthecompany,etc.mustbeprovidedbytheemployer,anditisthedutyoftheemployeetoprovideinformationwhichmaybeofrelevancetothesystem.

2. HealtHcare and insurancesHealthcareis,ingeneral,guaranteedbythesocialsecurity system contributions. The affiliates andcontributorstothissubsystemmayaccessabundleof services in money and in kind. The servicesin kind are defined in the Obligatory Plan ofHealthcare.Despitethefactofthecoverageofthehealthcaresubsystem,itispossibleforemployerstoprovidetheiremployees(asabenefit)withprivatehealthcare or to cover a proportion of its costs.Thisbenefitdoesnotexcludetheobligationforthepartiestocontributetothesocialsecuritysystem.Inadditiontothesocialriskscoveredbythesocialsecuritysystemthroughaninsurancescheme,thesystem provides, as a special insurance, a burialallowanceincaseofdeathoftheemployee.

3. required leave

a. HolidayS and annUal leave

Vacation:Everyemployee inColombia, regardlessof thetypeofemploymentcontractor its length,is entitled to fifteen (15) working days of paidholidaysforeveryperiodof12monthsofservices.Theemployees inprivatecompanieswhoprovideservicestofighttuberculosisandtheapplicationofX-raysareentitled tofifteen (15)workingdaysofpaidholidaysforeverysixmonthsofservices.Theemployeemayopttoenjoyhisholidaysintimeorinmoney,withoutapaidleave,subjecttolimitations.Forinstance,themoneyoptionislimitedtohalfoftheannualmandatoryperiod.

As a common practice, holidays are arrangedby agreement between the employee and theemployer. However, according to the legislation,the employer can unilaterally determine theperiodofholidaysforhisemployees,withanoticeof fifteen (15) days before the start of the paidleave.Holidayscanbeaccumulatedforuptotwo



(2)periodsorfour(4)periodsinthecaseoftrustemployees,orforeignerswhosefamilyresidesinadifferentplace.

Public holidays: Employees are entitled to beabsentfromworkonthepublicholidaysdefinedbythelaw(Article177oftheColombianLabourCodeestablishes18publicholidays)andareentitledtotheirregularremuneration.Whileitiscommonforthemunicipalities to create other public holidaysrelatedtolocalfestivities,privateemployersarenotboundtosuchholidays.If,underanycircumstance,theemployer requiresanemployeetoworkonapublicholiday,suchworkmustberemuneratedasiftheemployeeworkedonaSundayorhisweeklyrestday.

B. maternity and paternity leave

Femaleemployeesareentitledtoatleasteighteen(18)weeksofmaternityleave,fullypaid,includinganadoptedchild (thepaid leavecanbehigher incase of multiple or preterm birth); at least oneweek of thematernity leave (and amaximumof2 weeks) must be taken before the child’s birth.This payment is entirely under the charge of theHealthcare subsystem, as a benefit in moneyfor themother. On the other hand, the father isentitledtoeight(8)workingdaysofpaternityleave,fully paid, also entirely under the charge of theHealthcaresubsystem.Thefathermightsubrogatethemother’smaternityleaveincaseofherdemise,abandonment of the mother (single parent) orsicknessthatmakesherunabletotakecareofthechild.

C. SiCkneSS and diSaBility leave

In the event of the employee’s sickness and/oran accident that causes a work incapacity, it isnecessary to have the incapacity certified by alicensed practitioner or the competent authority,normally chosen by the employee, that clearlyestablishesthedaysrequiredfortheemployeetorecoverandreturntowork.

Sickness leave is considered a valid cause ofabsence and is therefore paid under Colombianlaw.Theremunerationduringsicknessdependsontheoriginofthediseaseoraccidentandisassumedasfollows:

Professional sickness and/or work accident:professional sickness and/or work accidentremuneration is assumed by the social securitysubsystem in labour risks on a base of 100% ofthe employee’s salary during the entirety of hisincapacitytowork.

Regularsicknessand/orregularaccident:(i)duringthe first 2 days of sickness leave, the employermust assume and pay 100% of the employee’ssalary. (ii)Betweenthe3rddayandthe90thday,the payments are assumed by the social securitysubsystem in healthcare under a base of 66%of the employee’s salary. (iii) Between the 91stand 180th day of work-incapacity the paymentsare assumed by the social security subsystem inhealthcareunderabaseof50%oftheemployee’ssalary.(iv)Afterthe181stdayanduntilday360ofworkincapacity,thepaymentsareassumedbythesocialsecuritysubsysteminpensionsunderabaseof50%oftheemployee’ssalary.(v)Afterday360,the payments are assumed by the social securitysubsysteminhealthcareunderabaseof50%oftheemployee’ssalary.

In any case, the benefit can be lower than themandatoryminimumwage.Eventhoughafterthethird day of sickness leave all benefits in moneyareassumedbythesocialsecuritysystem,thelawrequiresthattheworkincapacitiesbetweenday3andday180mustbepaidbytheemployer,grantingthe faculty to the employer for a reimbursementfromthesocialsecuritysystem.

Thesesamerulesalsoapplytodisabilityleave.

d. any otHer reQUired or typicALLy proViDeD LeAVe(s)

• required

trade union leave: trade unions are normallyentitled to special paid leaves assumed bythe employer, for some of their members toperformactivities related to theorganisationandaccomplishmentofthetradeunioninterests.Thispaid leave(s), its rules for recognition, lengthandotherspecialrequirementsarenormallydefinedinthecollectivebargainingagreement.

Voting leave: employeesareentitledtopaidleavefor purposes of voting in public elections (1/2 a



day of paid leave) and for mandatory jury dutyobligations(1dayofpaidleave).

mourning leave: aperiodof5daysofpaid leavemustbegrantedtoemployeesincaseofthedeathofcertainrelatives,asdefinedbylaw.

Burial leave: employers are obliged to grant thenecessaryleaveforhisemployeestoassistwiththeburialoftheirco-workers.

Compassionate leave:whileColombianlabourlawmandates the obligation for employers to granthis employees with a paid compassionate leave,it does not define its scope or length. Employersare recommended to analyse on a case-by-casebasis,theconditionstogrant,andthelengthof,acompassionateleave.

• typically provided

employment contract suspension: the employmentcontractcanbesuspendedforspecificcauses,asdefinedbylaw.Onesuchcauseoffersageneral possibility for the parties to suspend theemployment contract on mutual consent. Thisspecificsituation is commonlyusedbyemployerstogranthisemployeesnon-paidleaveforpersonalreasons.

Garden leave: as previously mentioned, theemployercanpreventhisemployeesfromattendingto their work, but the obligation to pay theirsalary,asifitwasaunilateralpaidleave,remains.However, this option is prohibited whenever theemployee has to receive unilateral paid leave,per the employer’s request, which may lead todiscriminatory measures against the employee,or could potentially subject the employee toharassment.

4. penSiOnS: mAndAtOry and tyPically Provided Pensions are recognised under three differentcircumstances:Oldage,invalidityandsurvivorship.Its amount is normally recognised by the socialsecuritysystempriortotheachievementofsomespecific requirements by the affiliate. The labourrisks subsystem only recognises pensions incircumstancewhereintheoriginofsaidbenefit isrelatedtoawork-relatedaccidentordisease.

Old Age pension: as Colombia shares a private/public scheme forpensions, the requirements forold age pensions differ from the elected schemeby the employee. In the public scheme, therequirementsforanoldagepensionarerelatedtoage(62formenand57forwomen)andadefinedminimum amount of contributions (1300weeks).For the private scheme, the requirement for thepension depends exclusively on the affiliate’ssavings in his mandatory account. No specialpension plans for the private sector are allowed,astheywereeliminatedandprohibitedundertheLegislativeAct001of2005.

Employees who perform activities that, by law,are considered high-risk activities, are entitled tobenefit from more gracious conditions to accessanoldagepension,but thatalsomeans that theemployer has an obligation to make additionalcontributionstothesubsystem.

invalidity pension: this is reserved foremployeesthat suffer a permanent disability of more than50% percent of his work capacity, evaluated bythecompetentauthority.Thetotalamountofthepensionisassumedbythesocialsecuritysystem.

The recognition of the old age pension or theinvalidity pension is consideredas a fair cause toterminate the employment contract, without therightofrecognitionofanyseverancepay.

5. any otHer required or tyPically Provided benefitsInadditiontothemonthlysalary,theemployer ismandated to recognise the following benefits inmoneyforhisemployees:

•a30days’allowancepaidannually (orprorata)dividedintotwopaymentsasfollows:15daysinJuneand15daysbeforethe20thofDecember.

•a 30 days’ allowance (or pro rata) as a savingfor the employee in case he is unemployed.This payment is not recognised directly to theemployee, but to a specialised company whichsavesthisamountandwillonlydisburseittotheemployee under circumstances defined in thelaw.



•a12%interestrate(orprorata)overtheallowancementionedinthelastparagraph.Thisinterestisrecogniseddirectlytotheemployee.

•atransportallowancepaidmonthlyforemployeeswhoearnuptotwo(2)timestheminimumwage.Theamountoftheallowanceisdefined,annually,bylaw.

•a pair of shoes and a working dress must beprovidedevery4monthsforemployeeswhoearnuptotwo(2)timestheminimumwage.Therightto this benefit is only available to employees,undercontract,after3months.

•in addition, the law establishes special benefitsfor certain economic sectors (i.e. the oil andminingsector).

AlejandroMiguelCastellanosPartner,López & [email protected]+57 1 340 694 4

mailto:alejandro.castellanos%40lopezasociados.net%20?subject=



López & Asociados Abogados is one of the mostprestigious law firms in Colombia. With more than10 years in the Colombian legalmarket, the firm isdevoted to practicing labour lawand social securitylawexclusively,andtodeliveringhigh-qualityadvicetoclients.López&Asociadosfocusesonconsultingworkandrepresentingcompaniesbyaligningitselfwiththestrategic vision of its clients. To achieve its aim, thefirmprovidesthreemainservicescoveringallmattersof Colombian labour law (labour consulting, labourplanningandrepresentationincourtandlitigation).

Withmorethan340activeclients,López&Asociadoshas grown to become one of the most importantfirmsinColombiaforlabourlawmatters.Thefirmhasbeenrecognisedasatoptierfirmfor its labour lawpractice,byspecialisedinternationalpublicationssuchas Chambers LatinAmerica and The Legal 500, anditspartnershaveearneda reputation forexcellencebasedontheirrenownedexpertiseinthelegalmarket.

This memorandum has been provided by:

López & Asociados AbogadosCalle70No7-30,6thFloorBogotá CapitalDistrictColombia+57 1 340 6944www.lopezasociados.net

LÓpeZ & ASOCiAdOS ABOGAdOS ColomBia

ContaCt USFormoreinformationaboutL&EGlobal,oraninitialconsultation, please contact one of our memberfirmsorourcorporateoffice.We look forward tospeakingwithyou.

L&E GlobalAvenueLouise221B-1050,BrusselsBelgium+3226432633www.leglobal.org

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2021-2022 / colombiaan alliance of employers’ counsel worldwide www.leglobal.org

Thispublicationmaynotdealwitheverytopicwithinitsscopenor cover every aspect of the topicswithwhich it deals. Itisnotdesigned toprovide legalorotheradvicewith regardtoanyspecificcase.Nothingstatedinthisdocumentshouldbe treated as an authoritative statement of the lawon anyparticular aspect or in any specific case. Action should notbetakenonthisdocumentalone.Forspecificadvice,pleasecontacta specialistatoneofourmemberfirmsor thefirmthatauthoredthispublication. L&EGlobal CVBA is a civil company under Belgian law thatcoordinates an alliance of independentmember firms. L&EGlobal does not provide client services of any kind. Suchservices are solely provided by the member firms in theirrespectivejurisdictions. Incertaincircumstances,L&EGlobalisusedasabrandorbusinessnameinrelationtoandbysomeorallofthememberfirms.L&EGlobalCVBAanditsmemberfirms are legally distinct and separate entities. They do nothave, and nothing contained herein, shall be construed toplacetheseentitiesintherelationshipofparents,subsidiaries,agents,partnersor jointventures.Nomemberfirm,northefirm which authored this publication, has any authority(actual, apparent, implied or otherwise) to bind L&EGlobalCVBAoranymemberfirm,inanymannerwhatsoever.

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