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Businesses are now investing in Colombian professionals to build their global teams and acquire skills in fields such as digital marketing, design, advertising, software engineering, ecommerce customer service, and administration.
As a PEO, or Professional Employer Organization, Filta provides comprehensive compliance and human resource solutions that enable your company to operate in accordance with Colombia's tax and labor laws. We handle all important employee administration tasks while keeping your business fully up-to-date with regulatory requirements. This includes processing payroll and managing employee benefits.
Filta is here to provide the expertise and support you need to safely navigate these legal requirements while keeping your daily operations in check.
What is PEO?
A Professional Employer Organization (PEO) helps businesses with all their HR tasks. In this arrangement, the PEO becomes a co-employer, taking on specific employer responsibilities such as payroll processing, benefits administration, employees' compensation, and other HR-related functions.
How can PEO help your business?
When you team up with a PEO, they can help you and your business achieve administrative efficiency, ensure legal compliance, and provide access to more comprehensive payroll and benefits management services. Furthermore, partnering with a PEO is an excellent strategy that streamlines your operations, keeps you on the right side of the law, and gives you access to top HR services and experts.
How does PEO work?
To get started, both of you will create a formal contract that specifies the responsibilities that need to be taken care of. Through this agreement, you and the PEO establish a co-employment relationship. This unique setup makes the employees of your company also employees of the PEO, while your employees continue working for you and following your company’s direction. Then, the PEO takes on crucial responsibilities such as risk management, ensuring compliance with tax regulations, and handling various other employment-related matters.
To put it simply, a PEO is like outsourcing all your HR work. It provides a full range of HR services, including payroll, and benefits administration, as a co-employer.
Building Global Teams in Colombia Using PEO.
Considering the idea of expanding your global teams to Colombia using a PEO?
Here is how we can help you.
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.
PEO 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 PEO solution is competitively priced, without compromising on quality or service.
PEO 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 PEO solution is competitively priced, without compromising on quality or service.
Steps to Getting Started.
Step 1
Assess your HR needs and goals
Identify your company's HR pain points and areas where you need support, then determine your specific HR goals—whether you need payroll processing, secure better benefits for your team. or make sure you're complying with all those employment laws.
Step 2
Schedule a call with us
Let’s discuss your needs and come up with an actionable PEO plan that works for you.
Book a time with Nerissa Chaux, Chief Growth Officer HERE.
Step 3
Let the PEO work its magic
Once we are onboard, the PEO assumes the role of the official employer, taking charge of HR and administrative matters. We will efficiently handle payroll, benefits administration, tax-related tasks, and ensure full compliance with the regulations.
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 is the difference between staffing and PEO?
Staffing agencies provide contract employees to client companies without becoming their legal employer, while PEOs form a co-employment relationship with client companies, taking on certain HR and administrative responsibilities for the existing workforce.
Both staffing and PEO can be valuable solutions for companies with specific workforce needs, depending on whether they require temporary employees for specific projects or a comprehensive HR support for their existing employees.
What is the difference between ASO and PEO?
ASO and PEO are both human resources solutions that assist client companies with various HR-related tasks, but they operate under different models and offer distinct services. ASOs provide administrative support and services while the client remains the employer, whereas PEOs form a co-employment relationship and take on a more active role in HR management, sharing certain employer responsibilities with the client company.
Both ASOs and PEOs can be beneficial, depending on the specific HR needs and preferences of the client organization.
Start building your global teams in Colombia with Filta.
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