Labor Law in Colombia 2026: Key Aspects for Business Owners

In 2026, Colombian labor law requires greater planning and stronger internal controls.

The Labor Reform strengthens indefinite-term contracts as the general rule, reduces the workday, expands night surcharges, increases Sunday and holiday pay, and requires full disciplinary due process, stating that everything must be written and properly documented.

This guide summarizes the essentials for Colombian and foreign business owners who hire in Colombia.

The idea behind this article is simple: to give you a clear roadmap to make sound labor decisions from the very beginning, avoid unexpected costs, and reduce the risk of sanctions or lawsuits. If you hire (or plan to hire) in Colombia, this is the map you need to keep at hand.

1) Before hiring: pre-contractual phase

Before the first day of work, the employer must verify identity, suitability, and legal compliance.

Essential checklist

• Employee identification (copy of ID card).
  
  
• Background checks.
  
  
• Résumé and personal and professional references.
  
  
• Affiliation certificates (if applicable): EPS, AFP, ARL, and Family Compensation Fund.
  
  
• Pre-employment occupational medical exam.
  
  
• Definition of the type of contract according to the nature of the position.
  
  
• Verification of legal disqualifications.
  
  
• Bank certification.
  
  
• Position-specific supporting documents (professional license, diplomas, degree certificates, etc.).
  
  

Practical tip: document everything. A well-organized personnel file reduces evidentiary risks.

2) Start and development of the employment relationship

Once the employee has been selected, there are two immediate obligations:

Mandatory affiliations

• EPS, AFP, ARL, and Family Compensation Fund.
  
  
• ARL coverage must be active before the start of work (mandatory).
  
  

Employment contract (always in writing)

Every employment relationship must be supported by a written contract. Minimum required elements:

• Personal service by the employee.
  
  
• Subordination and dependence.
  
  
• Probationary period:
  
  
  • Indefinite-term contract: maximum 2 months.
    
    
  • Other contracts: maximum 1/5 of the contract term.
    
    
• Position and duties.
  
  
• Salary or compensation.
  
  
• Work schedule and workplace.
  
  
• Grounds for termination.
  
  

3) Work clothing and equipment (Dotación)

Article 230 of the Colombian Labor Code requires employers to provide, every four months, one (1) pair of shoes and one (1) set of work clothing.

Applies if:

• The employee earns up to 2 legal monthly minimum wages (approx. 2026: COP $2,847,000).
  
  
• The employee has more than 3 months of service.
  
  

Best practices

• Provide equipment appropriate to the job functions and bearing the company’s branding.
  
  
• Early delivery with a signed delivery record.
  
  
• Compensation in cash is prohibited.
  
  

4) Wages and social benefits

Salary

• Paid biweekly or monthly according to the contract.
  
  
• Not less than the 2026 legal monthly minimum wage: COP $1,423,500 (full-time).
  
  

Service bonus (Prima de servicios)

• 30 days’ salary per year, paid in two installments:
  
  
  • By June 30 and December 20.
    
    
• It does not constitute salary.
  
  

Severance pay (Cesantías)

• One month of salary per year, deposited into the severance fund.
  
  
• Upon termination, the proportional amount must be paid.
  
  

Important: partial withdrawals are prohibited, except for legally authorized cases (housing, education, mortgage release, incapacity over 180 days), processed directly with the fund and supported by an employer letter.

Interest on severance pay

• 12% annually, payable no later than January 31 of the following year.
  
  

Vacation

• 15 business days for each year of service.
  
  
• Minimum 15 days’ notice.
  
  
• Mandatory recordkeeping (start date, vacation period, end date, and compensation).
  
  

Tips

• Vacation can be accumulated for up to 2 years, with a minimum enjoyment of 6 days per year.
  
  
• Up to half may be paid in cash (written agreement).
  
  
• Paid at the salary in effect at the start of the vacation period.
  
  

Transportation allowance

• COP $200,000 (2026).
  
  
• Not considered salary.
  
  
• Applies up to 2 legal monthly minimum wages.
  
  

5) Workday, schedules, and rest periods

Workdays, schedules, overtime, Sunday and holiday work must comply with the law and the contract. Maintain time tracking and written authorizations.

6) Paid leaves and permits

These are paid absences that do not affect salary or benefits (e.g., bereavement leave, domestic calamity, paternity/maternity leave, among others established by law).

7) Termination of the employment relationship

Common forms

• Mutual agreement: signed termination agreement with a fixed date.
  
  
• Expiration of term (fixed-term contract): written notice 30 days in advance.
  
  
• Just cause: a disciplinary process is recommended:
  
  
  • Notice to present defenses (facts, evidence, possible sanctions).
    
    
  • Hearing (minimum 5 days between notice and hearing).
    
    
  • Decision letter in accordance with the Internal Work Regulations (with the right to appeal).
    
    
• Without just cause: termination with severance payment, except in cases of special protection (maternity, health, pre-retirement, etc.).
  
  

8) Final settlement and closing documents

Upon termination, the employer must pay the final settlement of benefits (a non-waivable right) and deliver:

• Employment certificate (Article 57 of the Labor Code): length of service, duties, and salary.
  
  
• Exit medical examinations (within 5 days). If not performed, responsibility lies with the employee.
  
  

Full compliance with labor regulations prevents sanctions, reduces litigation, and strengthens an ethical and sustainable organizational culture. 

A compliant employer protects its business and enhances the performance of its human talent.