Colombia Employment Laws: A Complete Guide for Employers

Employment in Colombia is governed by the Código Sustantivo del Trabajo (CST), enforced by the Ministry of Labor (Ministerio del Trabajo). Law 2466 of 2025 reformed it in June 2025, with several changes phasing in through 2027.

If you’re hiring in Colombia, two things matter most: the rules now favor indefinite contracts, and several pay premiums are stepping up on a schedule you need to track. Here’s what applies to you, and how Multiplier handles it.

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What the employment law covers

The CST and its amendments cover:

• Contract types, trial periods, and termination
• Working hours, overtime, night work, and rest days
• Minimum wage, payroll contributions, and statutory bonuses
• Leave entitlements and public holidays
• Disciplinary procedure and employer obligations
• Penalties for non-compliance

Related instruments include Law 50 of 1990, Law 2101 of 2021 (reduced working week), Law 2114 of 2021 (parental leave), and Law 2466 of 2025 (labor reform).

Who’s covered

The CST governs private-sector employment in Colombia regardless of the worker’s nationality or whether the employer is local or foreign. Public employees’ individual employment relationships are governed by separate statutes.

Work performed abroad requires a separate assessment of the applicable law; Colombian nationality alone does not determine coverage.

Distinguishing employees from contractors in Colombia requires looking at how the work is performed. Genuine independent contractors do not receive the CST entitlements described here. Under the “primacy of reality” principle, personal service, continued subordination, and pay can establish an employment relationship regardless of the agreement’s label.

Employment contracts and types

Colombia requires written employment contracts for fixed-term and project-based work. Indefinite-term contracts are now the general rule under Law 2466 (article 5).

Source: Law 2466 of 2025, amending articles 46 and 47 of the CST, effective June 25, 2025. For contracts that existed before the reform, the four-year count starts June 25, 2025.

Employees can end an indefinite contract with 30 calendar days’ notice, and an agreed penalty for omitting notice is prohibited. Any probationary period must be agreed in writing and cannot exceed two months; for fixed-term contracts shorter than one year, it is capped at one-fifth of the initial term, subject to the two-month maximum.

Key statutory entitlements

Minimum wage

The 2026 minimum wage is COP 1,750,905. Decree 1469 of 2025 originally set this amount; following its provisional suspension, Decree 159 of February 19, 2026 retained the same figure on a transitional basis. Decree 1470 of 2025 set the transport allowance.

The transport allowance is subject to eligibility and applies to workers earning up to two minimum wages. Under Law 2466, teleworkers earning less than two minimum wages receive an equivalent connectivity allowance instead; the two allowances cannot be combined. Other forms of remote work have their own rules. When budgeting for a hire, assess the total cost of employment in Colombia, including employer contributions and statutory benefit accruals alongside salary.

Working hours and overtime

The general maximum working week is 42 hours from July 15, 2026, completing the reduction under Law 2101 of 2021. Law 2466 incorporates this limit into CST article 161. By agreement, employers can distribute hours over five or six days without reducing pay.

By agreement, flexible schedules can range from four continuous hours to nine hours a day without overtime, within a 42-hour week distributed over no more than six days with a mandatory rest day. Night-work premiums still apply.

Overtime is capped at two hours per day and 12 per week, except in security and health sectors. Employers no longer need Ministry of Labor permission for overtime, but they must keep a per-worker record showing the name, activity, and day or night hours.

Leave entitlements

Colombia has 18 public holidays. Several are fixed dates, and others move to the following Monday under the Emiliani Law.

Thirteenth month or statutory bonus

The prima de servicios is Colombia’s statutory service bonus, often described as a 13th-month payment: 30 days of salary per year, paid proportionately in two installments by June 30 and December 20. Under the annualized regime, cesantías accrue at one month’s salary per year and are generally deposited into a fund by February 14 of the following year. Interest is 12% annually on accrued cesantías, proportionate for shorter service.

Termination and severance

Dismissal without just cause generally requires an indemnity under CST article 64. Paying an indemnity does not remove special dismissal protections: pregnancy-related protections, for example, can require prior authorization from the labor inspector. Check protected status before ending any contract.

For ordinary resignation from an indefinite contract, the CST provides for 30 calendar days’ notice but prohibits an agreed penalty for omitting it. Notice does not apply when the employee resigns for a statutory just cause attributable to the employer.

Disciplinary procedure (new under Law 2466, article 7): Before sanctioning an employee, employers must follow a seven-step process:

1. Formal opening of the process
2. Written statement of the facts
3. Sharing all evidence
4. At least five days for the employee to respond
5. A reasoned decision
6. A proportionate sanction
7. A right to appeal

The simplified hearing rule applies to domestic workers and legally defined micro and small businesses with fewer than 10 workers; defense and due-process guarantees still apply. Employers had until June 25, 2026 to update applicable internal work rules. Publication must meet CST article 120, including virtual access for workers.

Penalties for non-compliance

CST article 486(2) expresses the general fine range as one to 5,000 monthly minimum wages. However, Ministry of Labor Resolution 4689 of 2024 requires fines to be calculated using their equivalence in Unidades de Valor Básico (UVB), with annual UVB updates. Do not multiply the statutory range by the 2026 minimum wage to estimate a fine. Specific violations may carry separate sanctions.

Fraudulent use of sector-specific or micro and small business privileges to undermine labor rights can also trigger compensation to the worker of one day’s salary per day of the conduct, up to 24 months (CST article 59A).

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Recent changes

Newest first:

• July 15, 2026: 42-hour working week takes effect (Law 2101 of 2021, article 161 CST as amended by Law 2466).
• July 1, 2026: The mandatory rest-day and holiday surcharge rises to 90% (Law 2466, article 14).
• June 25, 2026: Disability hiring quotas become mandatory: two workers with disabilities per 100 permanent workers for companies with up to 500 workers, plus one additional worker with disabilities per additional tranche of 100 above 500 (Law 2466, article 15).
• January 1, 2026: Minimum wage rises to COP 1,750,905 and transport allowance to COP 249,095. Decree 159 of February 2026 subsequently retained the wage amount on a transitional basis.
• December 25, 2025: Night work starts at 7:00 p.m. (Law 2466, article 10).
• June 25, 2025: Law 2466 of 2025 takes effect.

Next scheduled change: The mandatory rest-day and holiday surcharge rises to 100% on July 1, 2027.

Compliance strategies for employers

1. Update applicable internal work rules. The June 25, 2026 update deadline has passed. Reflect disciplinary due process and meet the physical and virtual publication requirements under CST article 120.
2. Audit your contracts. Confirm every fixed-term contract is in writing and none exceeds four years. Check that project contracts describe the work precisely.
3. Update payroll for the new premiums. Apply night work from 7:00 p.m., the 90% mandatory rest-day/holiday surcharge, and per-worker overtime records. Sunday is the default rest day unless another day is agreed in writing.
4. Check applicable hiring quotas. The disability quota has been mandatory since June 25, 2026. Separately, assess the apprentice quota and any permitted monetization; paying a fee is not a substitute for the disability quota.
5. Review your contractors. The “primacy of reality” principle means misclassified workers carry back-pay exposure.

You can manage employment compliance through an internal team or qualified local support. Multiplier’s Employer of Record in Colombia supports hiring without setting up an entity, including contracts, payroll, statutory contributions, and benefits administration. If you already employ staff through your own local entity, Multiplier’s Global Payroll service supports payroll administration. The appropriate arrangement depends on your roles and local requirements.

Frequently asked questions