HR, PEO & Employer of Record (EOR) Services in Colombia

Introduction

Colombia has emerged as one of Latin America’s most dynamic business hubs, offering a strategic location, a growing middle class, and strong trade links with both North and South America.

Its diversified economy, spanning technology, manufacturing, energy, and services creates attractive opportunities for foreign investors. With pro-business reforms and improving infrastructure, Colombia provides an ideal environment for companies looking to expand and tap into a skilled, cost-competitive workforce.

EOR & PEO Solutions in Colombia

If you’re looking to hire employees in Colombia without setting up a legal entity, using an Employer of Record (EOR) like Empleyo is the simplest and most compliant path forward. An EOR in Colombia acts as the official legal employer on your behalf, managing everything from payroll and HR administration to employment contracts and statutory employee benefits.

This model allows you to expand into Colombia quickly, while remaining fully compliant with local labor laws without the complexity or cost of registering a local entity.

What Is an Employer of Record in Colombia?

An Employer of Record Colombia (also known as an EOR provider) enables businesses to hire and onboard Colombia employees without having to incorporate in-country. The EOR manages:

You continue to oversee your team’s day-to-day tasks, while the EOR service handles legal obligations as the official employer on paper.

What’s the Difference Between EOR and PEO?

A Professional Employer Organization (PEO) typically supports businesses that already have a registered entity in Colombia, offering co-employment solutions for HR, payroll, and benefits. An EOR, however, is ideal when you don’t have a legal presence in Vietnam but still want to hire full-time staff.

Whether you choose an EOR or PEO depends on your Colombia hiring strategy, budget, and long-term plans for the market.

Benefits of Using an EOR Service in Colombia

By using an EOR solution, companies can confidently build their team in Colombia, access top talent in Colombia, and stay focused on business growth without getting tangled in bureaucracy.

Hiring in Colombia

Colombia is a thriving market with a growing pool of skilled professionals, making it an ideal destination for businesses looking to expand globally. But to hire in Colombia successfully, it’s important to understand your options especially when you don’t have a legal entity in Colombia.

That’s where using an Employer of Record in Colombia makes all the difference.

Your Hiring Options in Colombia

Businesses have two main paths to hire employees in Colombia:

The second option is faster, lower-risk, and ideal for companies that want to test the Colombian market, launch quickly, or hire remote employees without permanent infrastructure.

Why Use an EOR to Hire in Colombia?

This approach is especially useful for startups, global teams, and growing businesses that need to hire quickly and remain fully compliant.

Employment in Colombia

Understanding how employment in Colombia works is key to managing your team successfully and staying compliant. Whether you’re hiring directly or using an Employer of Record (EOR), companies must follow Colombian labor laws closely especially when it comes to employment contracts, payroll, and employee benefits.

That’s why many growing businesses choose to use an EOR in Colombia to handle these responsibilities with confidence.

Employment Contracts in Colombia

All employees in Colombia must be hired under a written employment contract, clearly outlining the job role, salary, benefits, working hours, and duration of employment. Contracts must comply with the Labor Code of Colombia, and are usually signed before or on the first day of work.

By working with a Colombia employer of record, you can ensure that all employment contracts in Colombia are properly structured, compliant, and aligned with local requirements without having to hire a full in-house HR team.

Payroll & Employer Contributions

Payroll in Colombia involves more than just paying a monthly salary. Employers are required to withhold income tax and make contributions to:

These deductions and employer contributions are calculated based on the employee’s gross monthly salary, and must be submitted on time to remain compliant. An EOR in Colombia handles this for you, managing all payroll, tax filings, and reporting on your behalf.

Employee Benefits and Leave

Colombian labor law mandates several employee benefits, including:

Using an employer of record service ensures your team in Colombia receives all required benefits and that your business remains fully compliant with Colombian employment law.

Termination & Notice Periods

Ending an employment contract in Colombia requires strict adherence to labor laws, which mandate notice periods, severance pay, and proper documentation depending on the type of contract and reason for termination.

An Employer of Record ensures compliance with these requirements, handling notice delivery, severance calculations, and reporting obligations to avoid disputes or penalties. This allows companies to part ways with employees lawfully while protecting both business interests and employee rights.

Visas & Permits in Colombia

If you’re planning to hire employees in Colombia or bring in foreign talent, understanding Colombia’s visa and permit requirements is critical. Navigating these processes can be complex, but working with a trusted Employer of Record (EOR) in Colombia makes it much easier.

An experienced EOR provider will ensure all permits are handled legally, so you can focus on building your team in Colombia with confidence.

Work Permits for Foreign Employees in Colombia

Foreign nationals who plan to work in Colombia must obtain the appropriate work visa and meet local immigration requirements, which can be a detailed and time-sensitive process.

An Employer of Record helps simplify this by sponsoring permits, managing compliance, and ensuring that foreign professionals are authorized to work legally. This allows companies to onboard international talent quickly while staying aligned with Colombian regulations.

Types of Visas for Foreign Talent

There are several types of visas used to work or do business in Colombia, including:

Each visa type has specific use cases, duration limits, and documentation requirements. If you’re looking to hire in Colombia or send international staff temporarily, an EOR Colombia solution helps you identify the right visa and manage the application process end-to-end.

Business Permits for Foreign Companies

To operate directly in Colombia, foreign companies typically need to register a legal entity in Colombia and apply for a business license. This can be a time-consuming process that includes office registration, investment approvals, and compliance with Colombian labor laws.

Alternatively, you can use an EOR in Colombia to bypass the need for a local entity. The Colombia employer of record is already registered and authorized to employ staff and manage payroll, contracts, and local compliance making it easier and faster to hire employees in Colombia.

Why Visas & Permits Matter for Global Hiring

If you’re hiring foreign employees in Colombia, or placing international staff in-country, it’s essential to stay compliant with immigration laws. The right employer of record service helps you:

Common Questions on EOR in Colombia

Is an EOR compliant with Colombian labor laws?

EORs operate fully within Colombia’s labor and tax framework. They ensure that employment contracts, termination processes, benefits, and reporting obligations comply with legal requirements, reducing risks of fines or disputes.

Can an EOR onboard employees quickly in Colombia?

Yes. Since the EOR already has an established local entity, companies can onboard employees within weeks instead of months. This makes it ideal for testing the market or scaling operations rapidly without delays tied to incorporation.

What industries benefit most from using an EOR in Colombia?

Tech, services, manufacturing, and startups benefit significantly, as they often need fast hiring with limited overhead. Multinationals entering Colombia also use EORs to manage local talent without building a permanent structure.

Can an EOR manage both full-time and contract workers?

Yes. An EOR primarily employs full-time staff under compliant labor contracts, but it can also support independent contractor arrangements when appropriate, ensuring both types of relationships align with Colombian law.

Does using an EOR affect control over employees?

No. While the EOR is the legal employer on paper, the client company manages daily tasks, goals, and performance. The EOR simply ensures that the employment relationship remains legally compliant in Colombia.

Is an EOR solution scalable in Colombia?

Yes. Businesses can start with a few employees and easily scale up as they grow. The EOR framework is designed to support expansion while maintaining compliance and efficiency in HR management.