employment law overview colombia 2019-2020

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employment law overview colombia 2019-2020Lopez & Asociados Abogados / Proud Member of L&E GLOBAL

an alliance of employers’ counsel worldwide

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table of contents.

i. General overview 01II. PRE-EMPLOYMENT CONSIDERATIONS 03III. EMPLOYMENT CONTRACTS 04IV. wORkINg CONDITIONS 06V. ANTI-DISCRIMINATION LAwS 08VI. SOCIAL MEDIA AND DATA PRIVACY 10VII. AuThORISATIONS fOR fOREIgN EMPLOYEES 11 VIII. TERMINATION Of EMPLOYMENT CONTRACTS 12IX. RESTRICTIVE COVENANTS 15X. TRANSfER Of uNDERTAkINgS 17XI. TRADE uNIONS AND EMPLOYERS ASSOCIATIONS 18XII. EMPLOYEE BENEfITS 20


i. general overview

2. Key Points•Employee-legislationinColombiaisdivided(dueto its importance) in specific rules compilationsfor each specialty: Labor rules, social security, proceduralrulesandemploymentlaw.

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

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

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

•Constitutional actions (“Tutela”) demandingimmediate protection of fundamental rightsprovidesanimportantsourceforlabornorms,asaresultoftheinterpretationofthewrittenlaborrules.

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3. legal frameworKLabor law normativity is provided by theConstitution(Fundamentalemployees’rights)andthelaw.BillscanonlybeissuedbytheCongressand/orthePresidentinexerciseofexceptionalpowers,but does not allow for the municipalities and/ordepartments to issue normativity regarding labormatters. The Ministries as part of the executivepowerareallowedtoissueDecreestodevelopthecontentofalaw,butnottomodifyitorderogateit.Inparticular,theMinistryofLaboristhehighestexecutiveauthorityregardinglabormatters.

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

Themain framework for labor law inColombia isprovidedbytheColombianLaborCode(CSTbyitsinitialsinSpanish)issuedbytheLegislativeDecree3743of1950.Despiteitslongevity,theLaborCodehasbeenthesubjectofmodificationsmainlytoadd

1. introductionColombianlaborlawisgovernedmainlybytheLaborcode,whichdatesfrom1950.Theapplicabilityoftheserulesisdone(directly)throughthelaw.Thoughcollectivelaborlawruleshavenotexperiencedanysignificantchanges since 2008, there currently exists a segment of ´legal unity´ in Colombia,which is an importantdynamicintheemploymentrelationsregardingtradeunions.

Colombianlaborrulesandprinciplesarenotonlyconsideredapublicpolicyrule,butmostoftheseprinciplesalsohaveaconstitutionalhierarchy,togetherwiththeInternationaltreatiesorconventionsthatrecognizehumanrightsratifiedbyColombia.Theconsequenceofthissituationisthatemployerscannot(evenwiththeemployee’sapproval)provideconditionsworsethanthoserecognizedbythelaw,theconstitutionoraninternationaltreatyorconvention,whichrecognizeshumanrightsratifiedbyColombia.

EffortshavebeenmadetoaddflexibilitytotheColombianlabormarkettomatchglobalizedstandards.Threemainreformstothelaborruleshavebeenmadetoaccomplishthisobjective:The50Actof1990,The789Actof2002andThe797Actof2003.


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flexibilitytothelabormarkettoadjustColombia´srules with regards to a more globalized world.

In 2015, the government issued the1072Decree(RegulatoryDecreeoftheLaborSector)tocondenseallexistingnormativityregardinglabormattersinauniquedocumenttoeasetheiraccess.

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 directlyrelated to the Companies’ business core. In2018,theMinistryofLabordecidedtoderogatea 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 labor law matters: (i) Pensionreform. (ii) Formalization reform (self-employedpersons who are not covered by any socialsecurity scheme). (iii) Reform on the collectivebargainingprocedurerules.


ii. PRE-EMPLOYMENT considerations 1. 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,alocalentityisnotneededtoconsidertheexistenceofanemploymentcontract.However,a local entitymight be needed to be establishedin Colombia to comply with certain obligationsregarding contributions to the social securitysystem.

2. limitations on bacKground checKsExpressprohibitionsoverbackgroundchecksinthelegislationincludethefollowing:

•HIVtestsorconditions.•Pregnancytest.•Mandatorymilitaryserviceapproval.•Unionizedcondition.•Diseasesordisabilities.•Blacklists.•Ingeneral, itmustbesaid thatanybackgroundcheck that might be considered discriminatoryisprohibited,unlessandobjectivejustificationisproven.

Also, data protection legislation (The 1581 Actof 2012) provides certain restrictions over theinformation potential employers and formeronescanpublishabout itscandidatesandformeremployees.

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3. restrictions on aPPlication/interview QuestionsEmployersareprohibitedtoaskanyquestionthatmay be considered discriminatory. Any questionor restriction on the application of a candidateregarding his age, sexual orientation, civil status,religious beliefs, political opinion, language,race, diseases, unionized condition or any otherconsideration that does not have any relationwiththepositiontobeperformed,andmightleadto a discriminatory ground, must be avoided. Inparticular,employersareforbiddentoaskpotentialcandidates to perform HIV and/or pregnancytestsasaconditionfortheapplication,unlessthiscondition is proving to be incompatible with thepositionthepersonappliedfor.



iii. emPloyment contracts1. minimum reQuirementsEmployment contracts are deemed as such if theyreunite three conditions: (i) services are providedby the person directly; (ii) subordination from theemployee towards the alleged employer; (iii) apayment as a retribution of the service provided.If these three conditions are met the relationshipwill be considered as an employment contract,disregarding the name or agreement the partiessigned.Employmentcontractscanbebothverbalandinwriting. However, in verbal contracts the partiesmustagree,at least,onthefollowingpoints:(i)thenatureoftheservicetoprovide;(ii)theamountandformofthecompensation;(iii)thecontract’slength.Apartfromthegeneralrequirementsfortheexistenceofanemploymentcontract,somecontractualtypesdemand specific requirements to be considered assuch.

2. FixEd-TERM/OPEN-ended contractsInadditiontohavingtocomplywiththegeneralaswell as any specific requirements that may apply,fixed-term contracts areobliged tobe inwriting tobe considered as such. Fixed-term contracts canbe signedwith any employee,whether the serviceprovidedcanbeconsideredpermanentortemporarywithin the organization. The labor code establishesthat the fixed-term contract length is free for thepartiestodetermine,butitcannotexceedthree(3)years.Thereisalsonolimitationforthepossibilityofsuccessivefixed-termcontractsorrenewals.

However, inthecaseoffixed-termcontractsagreedforaninitialperiodoflessthanone(1)year,thelawestablishesalimitationofthreesuccessiverenewals

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ofthe initialcontract,afterwhichtheperiodofthecontractwillbeconsideredforat leastone(1)year,butcanberenewedindefinitely.

While the labor code does not establish the needto argue a cause to terminate the contract by theexpiration date, the case law has prohibited thetermination of the employment contract whenthedecision canbedeemed to have resulted fromdiscriminatory reasons or infringes upon a superiorhierarchical right.

3. trial PeriodThetrialperiodmustbeagreedinwriting.Itslengthvariesdependingonthetypeofcontractagreedbythe parties, but cannot exceed in any case two (2)months. For fixed-term contracts or definite periodones (i.e. employment contracts for completing aspecifictaskortheoccurrenceofaspecificevent)thetrialperiodcannotexceedaone-fifthpart(1/5)oftheterminitiallyagreed.Whenconsideringtheexistenceof successive employment contracts, the partiescannotagreetotrialperiods,butforthefirstcontract.

4. notice PeriodColombian legislation only provides, in general,the need of a period of notice by the employer inthe event to terminate a fixed-term contract by itsexpirationdate.Theemployerisobligedtonotifytheemployee of his decision to terminate the contractby its expiration date at least 30 days before theoccurrenceofthetermagreed.Incasetheemployerfailstocomplywiththeperiod,thefixed-termcontractwillberenewedforthesametermthantheinitiallyagreed.Whiletheemployee,accordingtothelaw,isalsoobligedtocomplywithaperiodofnoticeinthesametermsthantheemployer,thisruleisnowadaysnotenforceable.




In some specific cases, the legislation provides theneed to comply with a particular period of noticeto terminate the contractalleginga causeor “justacausa”.

For employees considered to be the subject of aspecial protection (i.e. disabled persons, pregnantemployees, certain unionized employees) theemployer needs to observe an ‘a priori´ controlproceduretoterminatethecontract.Althoughthisisnotdeemedtobeaperiodofnotice,itoftenrequirestheobservationofanotificationtotheemployeeofthe procedure that will be followed.


iv. worKing conditions 1. minimum worKing conditionsEmployeesinColombiaenjoytherightsestablishedby the Political Constitution, the ILO conventionsratified by Colombia, the Labor Code and anyotherregulationthatdevelopslaborrules.Aslabornormsenjoythenatureofpublicpolicy,thepartiescannot agree against them or for the employeeto renouncea labor rightgrantedby law,but theemployerisallowedtoprovidebetterbenefitsand/orrightsfortheemployeesthanthoseestablishedinthelaw.

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 organization whether by its unilateraldecisionorbycollectiveagreement.

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

Thesalarycanalsobeagreedonanylegalcurrency.The employee is entitled to ask the payment inColombian Peso (COP), in which case it must bedoneat theofficialexchange rateon theday the

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payment must be issued by the employer. Foremployees who are paid ‘per day’ the salary incashwagepaymentcannotexceedoneweek.Foremployeeswhosesalaryisbasedonamonthlyfee,theirpaymenthastobedoneat leastonceeverymonth.

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

integrated salary: Foremployeeswhoearnasalaryequivalenttoatleastten(10)timestheminimumwage or more, an “integrated” salary can beagreed.An“Integrated”salaryagreementmustbeinwriting.

The employee will receive a monthly paymentwhichincludestwofactors:i)thepersonalserviceeconomicretribution,andii)afixedamountofatleastthe30%ofthesalary,whichcompensatesinadvance statutorybenefits,overtimework, workon Sundays and any other payment expresslyincluded in the “integrated” salary agreement,except vacations. Therefore, the total monthlyminimumintegratedsalaryamountis13timestheminimumwage.

3. maximum worKing weeKTheordinaryworkingtimecannotexceed8hoursperdayand48hoursperweek,withtheemployeebeingentitledtoamandatoryrestday,normallyonSunday.However,thelawallowsforthepartiesto



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agreethatthedailyworkingtimecanbedistributedbetween 4 and 10 hours per day ensuring themaximumworkingweek(48hours).

The dailyworking timemust be distributed in atleasttwoparts,witharestperiodbetweenbothofthem.Thisrestperiodbetweenbothsectionsisnotconsideredpartofthedailyworkingtime.

Colombian labor 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)areentitled toaspecialoverchargeof 35% over their regular hourly compensation,disregarding other special compensations likeovertimecompensation.WorkonSundaysand/orpublicholidaysmustbepaidwithanoverchargeof75%overtheregularcompensation.

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, the

improvement of the work environment andconditions,andthecontrolofanyhazardordangerintheworkplace.Thissystemincludesnotonlytheemployees of a Companybut also its contractorsandsubcontractors.

B. COMPLAINT PROCEDuRES

TheMinistryofLaborthroughthelaborinspectorate(administrativeauthority)isinchargeoftheHealthandSafetycomplaints.Theformalproceduremaycomefromadirectcomplaintbyanemployee(oranonymously) regarding an alleged breach of aHealthandSafetyprocedurebytheemployer.TheLabor Inspectorate is alsoentitled to,unilaterally,makeavisittoanemployerorrequestinformationof his “Safety and Health at Work ManagementSystem” and initiate a complaint procedure if hefindsananomalyintheinformationprovided.

C. PROTECTION fROM RETALIATION

ColombianLaborlawdoesnotprovideanyspecialprotectionspecificallyforemployeeswhopresentaformalcomplaintagainsttheiremployerforfailingtocomplywiththeHealthandSafetylegislation.



V. ANTi-diSCRiMiNATiON laws1. brief descriPtion of ANTi-diSCRiMiNATiON laws The Colombian Political Constitution recognizesthe 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,unionized 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.

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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 theobligationfortheCompanytocreateaspecialbodywithintheorganizationtoanalyzetheharassmentcomplaints, 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.

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

Special regulations exist regarding thismatter foremployersintheoilandminingsector.

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 internalbodytoanalyzetheharassmentcomplaints.

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


vi. 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.

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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 through socialmedia.TheuseofsocialmediatodisparagetheemployerortodivulgeconfidentialinformationoftheCompanymaycausedamagestohispublicimageandhis interests,whichthenallowshimtoinitiatedisciplinarymeasuresasaconsequenceofthissituation.

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



vii. authorisations for foreign emPloyees 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 recognized for thissolepurpose,onlyallowstheemployeetoperformthe services for the position, company and/orprofessionwherewiththeVISAwasauthorized.

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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 severancepaymentinaccordancetothelaw.

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 (fair cause), the Labor Code mandatestheobligationtopayaseverancepaymentasifthecontractwereterminatedwithoutafaircause.

2. collective dismissalsThe 50 Act of 1990 establishes the requirementsfor a collective dismissal, which in Colombia,applies to a dismissal that affects, in a period ofsixmonths,anumberemployeesequalto:(i)30%of the totalemployees inCompanieswitha totalshareofemployeeshigherthan10butlowerthan50; (ii) 20%of the total employees inCompanieswithatotalshareofemployeeshigherthan50butlowerthan100;(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,toreceiveauthorizationfromtheMinistryofLabor.

3. individual dismissalsIndividual dismissals, unlike the collectivedismissals,donotrequireapreviousauthorizationby any authority, as the employer is free toterminate the employment contract at any time.However, for thedismissalofanemployeeundersometypesofspecialprotection,anauthorizationfrom the labor inspectorate is needed (pregnantwomen,disabledemployees).

Inthecaseofemployeesunderspecialprotectionfor their unionized condition (“fuero sindical”) aprevious authorization is required by the Laborjudge.

A termination with or without cause should becommunicated to the other party in writing andentitletheemployeetothepaymentofhissalaryandsocialbenefitsuntilhis lastdayofwork,anddependingonhisterminationgrounds,aseverancepaymentmightbepaid.

A. IS SEVERANCE PAY REquIRED?

Onlyforadismissalwithoutacause.TheamountoftheseverancepaymentdiffersinseveralfactorssuchasSeniority, typeofcontractandamountofthe salary. Severance payment in Colombia doesnothavealimitationintheamounttoberecognizedby the employer.

The severance payment for employees with adefiniteperiodcontractisequaltothesalaryofthetimeremainingfortheexpirationdate,disregardingtheemployee’sseniorityorsalary.

In case of an employeewith an indefinite periodcontract, there are currently three systemsapplicable, depending on his seniority in theCompany:

for employees hired before January 1, 1981 the system applicable is the 2351 PresidentialDecree of 1965: These employees have a specialstability regime which excludes the possibilityof termination without cause. Nevertheless, inexceptional cases whenever this termination isapplicable,theseverancepaymentcorrespondsto45daysofsalaryforthefirstyearofserviceand30daysofsalaryforeachsubsequentyearofserviceor pro rata.

for employees hired before december 28, 1992 thesystemapplicableisthe50Actof1990:Inthisregime,severancepaymentscorrespondto45daysofsalaryforthefirstyearofserviceand40daysforeachsubsequentyearofserviceorprorata.

For employees hired after december 28, 1992 the system 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 fixed systemof calculation for the severance payment.Nonetheless,employeescanclaimmoraldamagesinadditiontotheseverancepaymentprovidedbylaw.



4. seParation agreements

A. IS A SEPARATION AgREEMENT REquIRED OR CONSIDERED BEST PRACTICE?

ColombianLaborlawdoesnotrequireaseparationagreement to terminateacontract.Nevertheless,itallowsitsapplication.Thesekindsofagreementsarenotonlywidespread in the labormarket,butare generally recommended to terminate thecontract 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, to the social security system.

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,whichnormallymeansaclauseacknowledginganamountofmoneytoberecognized 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,bytheLaborjudgeortheLaborinspectorate.

5. remedies for emPloyee seeKing to challenge wrongful terminationWrongful termination claims are analyzed 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 Colombian labor lawdoesnot includeanyspecialprovisions 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 Colombianlabor law are scarce. The legislation only providesrules fornon-competeclauses.Scholarshave triedtobring toemployment contracts some restrictivecovenants normally used for commercial/civilcontracts,undertheassumptionthattheseclausesmay be applicable to employment relationships,as its nature is similar to any other contractualrelationship.

Restrictivecovenantsare thereforeallowed,undersome general limitations. Any clause that maylimit theemployee’s right towork (which includeshisrighttoaccessnewemployment) isconsideredineffectiveandcannotbeenforcedbyajudge,evenif the employee consented to the use of such aclause.

2. tyPes of restrictive covenants

A. NON-COMPETE CLAuSES

Article 44 of the Colombian Labor Code expresslyallows for the possibility of the employer to agree withhispersonnel,onageneralprohibitiontoprovideservices indeterminedactivitiesortheemployer´scompetitors.Thisclassofnon-competeclausesareonlyallowedbylawwhiletheemploymentcontractisongoing.Non-competeclausesforemployeesthataremeanttoapplyaftertheemploymentcontracthasended,areinvalid.

B. NON-SOLICITATION Of CuSTOMERS

Such a provision does not exist in Colombianlabor law. However, restrictive covenants on non-solicitation of customers are often used for high-executive employees. Scholars have understoodthatthesekindsofspecificclausesarevalidaslongastheyrespondtoaprincipleofproportionalityandreasonability. Whileaclauseofthisnaturemayrestricttheformeremployee’srighttowork,alimitationontheformeremployee’s possibilities to perform actions thatmightharmtheCompanythroughdirectsolicitationof customers, are proportional and reasonable toprotecttheCompanyinterests.

In any case, competition law establishes specialprovisionstowardstherestrictionsofconductsthatmightbeconsideredunfaircompetition.

C. NON-SOLICITATION Of EMPLOYEES

These types of restrictive covenants are notnormallyused foremployees in their employmentcontracts, but rather between Companies in theircommercial relationships to avoid possible actsof unfair competition. The applicability of theseclausesbetweenCompaniesmustattendcriteriaofproportionalityandreasonabilitytoavoidapossibleviolationoftherighttowork.

3. enforcement of restrictive COVENANTS—PROCESS and remediesRestrictive covenants may be included in theemployment contract (normally used for non-competeclauses)or inseparatedocumentsduring




theemploymentrelationshiporafterit.Aviolationof a restrictive covenant during the employmentcontract can be subject to disciplinary measuresfromtheemployerandeventually theterminationofthecontractwithafaircause.

Theviolationofarestrictivecovenant,whichintendsto apply after the employment relationship ends,canbeenforceablethroughalegalclaimagainsttheformer employee.

4. use and limitations of garden leave GardenleavepracticeisallowedinColombianLaborlaw.Theemployercanrestricthisemployees fromattending towork, but the obligation to pay theirsalary,as if itwasaunilateralpaid leave, remains.However,thispossibilityfindsalimitationwheneverthe request from the employer for the employeeto receive the unilateral paid leave may lead toa discriminatory measure or possible conduct ofharassmentagainsttheemployee.


x. transfer of undertaKings 1. emPloyees’ rights in case of a transfer of undertaKingIncaseofatransferofundertaking,theemploymentcontract isnot terminated,suspendedormodifiedas long as there areno substantial changes in theactivities of the new employer. Therefore, theemployees have the right for their contract toremain with the same conditions, salary, workingtime,benefitsandthesenioritytheywereentitledtobeforethetransfertookplace.Asthetransferredis liable for all labor rights of the predecessor, the employee can claim the labor rights that he wasentitled to before the transfer took place, fromeitherhispreviousemployerorthenewone.

2. reQuirements for Predecessor and successor PartiesColombian labor lawdoes not provide any specialrequirementfromalaborpointofview,foratransferof undertaking to take place. The parties of thetransfercanagreetoanymodificationsoftheirownrelations,aslongastheseagreementsdonotaffectthe labor rights of the employees.



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’ organizations, employers’organizationsarenot 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 organization, disregarding theirnumber of affiliates. Nowadays, and as a resultof the Constitutional Court’s case law, there areno specific rules regarding representativeness fortradeunionsforthecollectivebargainingprocess,oranyothermatteronclaimsorconversationswiththe employer.

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 theunionizedmembers,andifthetradeunionreunitestherequiredmajority(thismayvariatedependingon the trade union representation within theCompany)ofaffiliateswithintheorganization,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’slabor lawdoesnotprovide for any law regardingemployees’ participation in employer’s decisions,other than through trade unions, and thereforetheseorganizationsserveasthemainbodyforthispurpose.



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

Therighttostrikeisrecognizedasaconstitutionalrightanditsexercisemustbemadeinaccordancewithdemocraticprinciples. 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 labor law does not establish 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.

4. 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.TheColombiansystemiscompoundbythesubsystemsofhealthcare,pension, laborrisksandfamilyallowance.

Employer’s contributions for the social securitysystem average thirty percent (30%) of theemployee’s contributory base income. Thecontribution percentage to the labor 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 legalnaturesrespectively,theemployeehastherighttochoosetheAgencyhewantstoaffiliatewithforhishealthcareandpension.TheemployerchoosestheAgenciesinthesubsystemsoflaborrisksandfamilyallowance,asthecontributionisassumedentirelyby the employer.

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 insurancesHealthcare is ingeneral,guaranteedby thesocialsecurity system contributions. The affiliates andcontributorstothissubsystemmayaccessabundleof services in money and in kind. The servicesin kind are defined in the Obligatory Plan ofHealthcare.Despitethefactofthecoverageofthehealthcare subsystem, it is possible for employers to providetheiremployees(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:EveryemployeeinColombia,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)periodsinthecaseoftrust



employees,orforeignerswhosefamilyresidesinadifferentplace.

Public holidays: Employees are entitled to beabsentfromworkonthepublicholidaysdefinedbythelaw(Article177oftheColombianLaborCodeestablishes18publicholidays)andareentitledtotheirregularremuneration.Whileitiscommonforthemunicipalities to create other public holidaysrelatedtolocalfestivities,privateemployersarenotboundtosuchholidays.If,underanycircumstance,theemployer requiresanemployeetoworkonapublicholiday,suchworkmustberemuneratedasiftheemployeeworkedonaSundayorhisweeklyrest day.

B. MATERNITY / 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 LEAVE 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.Theremunerationduringsicknessdependsontheoriginofthediseaseoraccidentandisassumedas follows:

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

regular sickness and/or regular accident:(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 securitysubsysteminhealthcareunderabaseof66%oftheemployee’ssalary.(iii)Betweenthe91stand180thdayofwork-incapacitythepaymentsareassumedbythesocialsecuritysubsysteminhealthcareunderabaseof50%of theemployee’s salary. (iv)Afterthe181stdayanduntilday360ofworkincapacity,the payments are assumed by the social securitysubsysteminpensionsunderabaseof50%oftheemployee’ssalary.(v)Afterday360,thepaymentsare assumed by the social security subsystem inhealthcareunderabaseof50%oftheemployee’ssalary. Inanycase, thebenefitcanbe lowerthanthemandatoryminimumwage.Eventhoughafterthethirddayofsicknessleaveallbenefitsinmoneyare assumed by the social security system, the law requiresthattheworkincapacitiesbetweenday3andday180mustbepaidbytheemployer,grantingthe faculty to the employer for a reimbursementfrom the social security system.

Thesesamerulesalsoapplytodisabilityleave.

D. DISABILITY LEAVE

Thesamerulesasclause‘c.’aboveapply.

E. 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 to performactivities related to theorganizationandaccomplishmentofthetradeunioninterests.Thispaid leave(s), its rules for recognition, lengthandotherspecialrequirementsarenormallydefinedinthecollectivebargainingagreement.





Voting leave:employeesareentitledtopaidleavefor purposes of voting in public elections (1/2 aday 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:whileColombian labor lawmandates the obligation for employers to granthis employees with a paid compassionate leave,it does not define its scope or length. Employersare recommended to analyze on a case-by-casebasis,theconditionstogrant,andthelengthof,acompassionateleave.

• TypicallyProvided

Employmentcontractsuspension:theemploymentcontract can be suspended for specific causes,as defined by law. One such cause offers ageneral 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 recognized under three differentcircumstances:Oldage,invalidityandsurvivorship.Its amount is normally recognized by the socialsecurity system prior to the achievement ofsome specific requirements by the affiliate. The

labor risks subsystemonly recognizespensions 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 recognize the following benefits inmoneyforhisemployees:

•a30days’allowancepaidannually (orprorata)dividedintotwopaymentsasfollows:15daysinJuneand15daysbefore20thofDecember.

•a 30 days’ allowance (or pro rata) as a savingfor the employee in case he is unemployed.This payment is not recognized directly to theemployee, but to a specialized Companywhich



savesthisamountandwillonlydisburseittotheemployee under circumstances defined in thelaw.

•a12%interestrate(orprorata)overtheallowancementionedinthelastparagraph.Thisinterestisrecognizeddirectlytotheemployee.

•atransportallowancepaidmonthlyforemployeeswhoearnuptotwo(2)timestheminimumwage.Theamountoftheallowanceisdefined,annually,by law.

•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).

Alejandro Miguel Castellanos, PartnerLópez&[email protected]+57 1 340 6944

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

Lopez & Asociados Abogados is one of themostprestigiouslawfirmsinColombia.Withmorethan10yearsintheColombianlegalmarket,theFirmisdevotedtopracticinglaborlawandsocialsecuritylaw, exclusively, and to delivering high-qualityadvice to clients. Lopez & Asociados focuses onconsulting work and representing companies byaligningitselfwiththestrategicvisionofitsclients.To achieve its aim, the Firm provides threemainservices covering all labor matters in Colombianlegislation (Labor consulting, labor planning andrepresentationincourtandlitigation).

With more than 340 active clients, Lopez &Asociadoshasgrown tobecomeoneof themostimportantfirmsinColombiaforlaborlawmatters.Thefirmhasbeenrecognizedasatoptierfirmforits labor lawpractice,by specialized internationalpublications suchasChambers LatinAmericaandThe Legal 500, and its partners have earned areputationforexcellencebasedontheirrenownedexpertiseinthelegalmarket.

This memorandum has been provided by:

Lopez & Asociados AbogadosCalle70No7-30,6thFloorBogotá CapitalDistrictColombiaP: +57 1 3406944www.lopezasociados.net

loPeZ & asociados abogados COLOMBIA


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