Considering hiring in Colombia?
Expand your talent pool while we make the hiring process easier for you.
Establishing a team globally presents a compelling opportunity for business owners. It provides access to untapped markets, expands skills base, and offers the potential to reduce costs significantly. Embracing this approach strategically can yield substantial benefits for your business growth and success.
If you are looking to hire digital marketing, design, advertising, software engineers, ecommerce customer service, and administration professionals in Colombia and make sure it stays in compliance at all times, Filta provides comprehensive hiring, onboarding, and payroll support that enable your business to operate in accordance with Colombia's financial and legal procedures.
As an EOR (Employer of Record), we take on the legal responsibilities of hiring and onboarding employees on behalf of your company, handling payroll, taxes, benefits, and HR administration. With Filta’s support, you can confidently hire and operate in Colombia, knowing that all legal aspects are expertly taken care of.
What is EOR?
An Employer of Record (EOR) acts as a service provider, allowing you to recruit, manage, and pay employees in foreign locations like Colombia where you lack a legal presence. Using an EOR, you can focus on growing your business while tasks like payroll management, benefits administration, tax handling, and local compliance are handled seamlessly.
How can EOR help your business?
An Employer of Record allows businesses to hire full-time employees in other countries legally.
EOR can be a strategic partner that empowers your business to:
- Expand globally
- Comply with local regulations and assist with HR administration
- Efficiently manage your global teams and streamline the onboarding process for new employees
How does EOR work?
In the country where your employee is based, such as Colombia, the Employer of Record (EOR) acts as the formal employer on paper. But in practice, the EOR doesn't get involved in the daily operations of your employees beyond taking care of essential HR functions like payroll and benefits management. You have full control over your team members, just like your other employees. You lead and guide them while the EOR handles all the administrative tasks, ensuring a smooth and compliant employment process.
Building Global Teams in Colombia Using EOR.
Considering the idea of expanding your global teams to Colombia using an EOR solution? Here’s what you need to know to get started!
Employment Laws in Colombia
1.
Creating a Colombian Employment Contract
First things first, create a mutual agreement on the responsibilities of the employee. Contracts provide clarity on the terms and conditions of employment and protect employers from potential legal disputes. Having a written contract for every employee in Colombia is not required, but highly recommended. These contracts should contain all the specific and important details, such as compensation, vacation leave, and other relevant information that needs to be discussed between employee and employer. Moreover, it should be drafted in Spanish, and all monetary references should be in the local currency, Colombian pesos.
2.
Guide to Colombia’s Working Hours, Paid Leaves, and National Holidays
Working Hours
In July of 2021, the Colombian Congress passed Law 2101 of 2021 which, beginning in 2023, reduces the Colombian standard work week from 48 to 42 hours in a gradual manner (from 2023 to 2026), while keeping salaries in effect unchanged. The 42-hour workweek may be spread over five or six days, while leaving at least one day, traditionally (but not necessarily) Sunday, for rest.
Here's how it will change over the next few years:
These changes aim to improve work-life balance and promote better working conditions for employees in Colombia.
Paid Leave
- Vacation Leave
Employees in Colombia enjoy a minimum of 15 days of paid vacation leave per year of service.
- Sick Leave
If an employee cannot work due to illness or an accident, a medical authorization from a Colombian Social Security entity must be obtained in order for the employee to get paid for the days during which the employee could not attend work. The employer pays sick leave during the employee's absence, but, as of the third day of sick leave, the employer can claim the payment back from the social security system.
- Maternity and Paternity Leave
Female employees get 14 weeks of paid maternity leave, divided into two weeks before they give birth and 12 weeks after. While male employees receive eight days of paid paternity leave.
Public Holidays
Colombians take great pride in their holidays, which are celebrated with lots of joy and enthusiasm. Check out Colombia's holiday schedule below.
Colombia Public Holidays 2023
Date | Day | Holiday |
Jan 1 | Sun | New Year's Day |
Jan 9 | Mon | Epiphany Holiday |
Mar 20 | Mon | St Joseph's Day |
Apr 6 | Thu | Maundy Thursday |
Apr 7 | Fri | Good Friday |
May 1 | Mon | Labour Day |
May 22 | Mon | Ascension Day Holiday |
Jun 12 | Mon | Corpus Christi Holiday |
Jun 19 | Mon | Sacred Heart Day |
Jul 3 | Mon | Feast of St Peter and St Paul |
Jul 20 | Thu | Independence Day |
Aug 7 | Mon | Battle of Boyacá Day |
Colombia Public Holidays 2024
Date | Day | Holiday |
Jan 1 | Mon | New Year's Day |
Jan 8 | Mon | Epiphany Holiday |
Mar 25 | Mon | St Joseph's Day |
Mar 28 | Thu | Maundy Thursday |
Mar 29 | Fri | Good Friday |
May 1 | Wed | Labour Day |
May 13 | Mon | Ascension Day Holiday |
Jun 3 | Mon | Corpus Christi Holiday |
Jun 10 | Mon | Sacred Heart Day |
Jul 1 | Mon | Feast of St Peter and St Paul |
Jul 20 | Sat | Independence Day |
Aug 7 | Wed | Battle of Boyacá Day |
Health Coverage
Colombia has a social healthcare system, making private insurance optional. However, lots of employers still offer it as a perk to their employees. Private insurance can be a great choice since it often provides better care and more comprehensive coverage compared to the public system.
Compensation and Benefits
Filta’s Colombian Salary Guide provides information about the average salaries for tech, creative, digital, and administrative positions in Colombia. Have a look, and it’ll give you a great overview of what to expect in terms of compensation.
Why Partner with Filta?
With high accessibility, time zone alignment, and new world skill sets, Colombia is a go-to nearshoring location for businesses in North America.
Choosing to hire in Colombia with Filta allows businesses like yours to access these skilled professionals and build your teams quickly and at a competitive cost. Filta's experienced team of experts can provide insight into the Colombian market, helping you make the best decision for your specific needs.
Built-in HR Support
We provide full scoping and recruiting for the roles you need, with constant contact and guidance throughout.
Best Colombian Talent
With over 70 years of combined global recruitment and head-hunting experience, we know how to find you the best, in the most efficient way.
Cost-effective Solution
Our Colombian EOR solution is competitively priced, without compromising on quality or service.
Built-in HR Support
We provide full scoping and recruiting for the roles you need, with constant contact and guidance throughout.
Best Colombian Talent
With over 70 years of combined global recruitment and head-hunting experience, we know how to find you the best, in the most efficient way.
Cost-effective Solution
Our Colombian EOR solution is competitively priced, without compromising on quality or service.
3 Steps to Hiring.
Step 1
Schedule a call with us
Let’s sit down, discuss your needs, and come up with an actionable hiring plan that works for you.
Step 2
Find the right candidates
Our Recruitment team handpicks the best-qualified candidates based on your needs. We meticulously screen and shortlist top talent and arrange video interviews for you to get to know them better.
Step 3
Allow the EOR to do its work
Once your team is on board, we, as your EOR, take over as the legal employer of your employees and we become responsible for their labor compliance in Colombia.
Case Studies.
FAQs.
What is the difference between a PEO and an EOR?
A PEO acts as a co-employer and takes care of HR tasks including payroll and benefits for the client company's current employees. On the other hand, an EOR takes full legal responsibility of the employees, making them a legal employer, and this arrangement is common in the context of hiring remote or international employees.
What are the advantages of EOR?
Employer of Record services offer several advantages for businesses:
- Global Expansion
EORs enable businesses to hire employees in multiple countries without the requirement of establishing legal entities in each location. This streamlined approach opens doors to international opportunities.
- Compliance and Risk Management
EORs take on all the legal responsibility of being the employer, making sure your business complies with local labor laws, tax regulations, and employment standards. They effectively minimize the risk of encountering legal issues and associated penalties for your business.
- Streamlined HR and Payroll
EORs handle various HR tasks, including payroll management, benefits administration, and tax withholdings. This streamlines operations and frees up time and resources for core business activities.
Can I hire international employees without an EOR?
Yes, you can hire workers in another country either by setting up your own legal entity there or employing them as contractors. Setting up your own legal entity means managing everything locally, which can be expensive. If you only need a few employees, using an EOR is a more cost-effective option. Hiring workers as contractors requires caution due to potential misclassification issues, but using an EOR mitigates compliance risks by treating workers as proper employees.