Employment
Labour Code with annually negotiated minimum wages
The Código del Trabajo (Ley 185) of 1996 governs employment and is protective in construction. Minimum wages are agreed annually in a tripartite commission by sector, with free-zone textile wages negotiated separately on a multi-year basis.
Key rules
- The ordinary week is 48 hours daytime and 42 at night, with overtime at double time.
- Thirteenth-month pay (aguinaldo) equals one month's salary, payable in the first ten days of December.
- Dismissal without cause requires one month per year for the first three years, then 20 days per year, capped at five months.
- Annual leave is 15 days for every six months worked, that is 30 days a year.
- Unions require 20 workers, and union leaders enjoy fuero sindical against dismissal.
Governing law
- Código del Trabajo (Ley 185 de 1996)Contracts, hours, leave and termination.
- Ley de Seguridad Social (Ley 539)INSS contributions.
In practice
Thirty days of annual leave is among the most generous statutory entitlements in the region and should be budgeted. INSS registration is mandatory; contribution rates were increased in 2019, raising employer cost materially.