Wrongful Termination in Colombia: Worker Rights and How to File a Claim

In Colombia, Article 64 of the Substantive Labor Code (CST) establishes that when an employer terminates an employment contract without just cause, the employer must pay severance compensation to the worker. This compensation varies depending on the type of contract and the worker’s seniority.

Types of Contract and Severance Calculation

Indefinite-Term Contract

For workers earning less than 10 times the legal monthly minimum wage (SMLMV): 30 days of salary for the first year and 20 additional days for each subsequent year or fraction thereof. For salaries of 10 SMLMV or more: 20 days for the first year and 15 days for each additional year or fraction.

Fixed-Term Contract

The severance equals the salary corresponding to the remaining time on the contracted term. This seeks to compensate the legitimate expectation the worker had to remain employed for the full agreed term.

Contract for Specific Work or Service

In this case, the severance corresponds to the remaining time needed to complete the contracted work, with a minimum of 15 days of salary.

Deadline for Filing a Claim

The labor action prescribes in 3 years from the date the obligation became enforceable (Article 488 CST). It is essential to act promptly and preserve all documentation: termination letter, pay stubs, employment contract, final settlement of benefits, and any relevant communications.

Claims Procedure

The worker should first verify whether the settlement received is correct. Subsequently, the worker may attend a conciliation hearing before the Ministry of Labor or before an authorized conciliation center. If no agreement is reached, a labor lawsuit can be filed before the Circuit Labor Courts.

Late Payment Compensation (Article 65 CST)

If the employer fails to pay social benefits and the final settlement at the time of contract termination, the worker is entitled to late payment compensation equivalent to one day of salary for each day of delay, up to 24 months. After 24 months, late-payment interest at the maximum legal rate accrues.

Recommendation

If you have been wrongfully terminated, do not sign any documents without prior legal advice. A labor lawyer can verify whether the settlement is correct, whether additional rights exist, and whether your case warrants judicial action. The initial consultation at Portilla & Abogados is free and without obligation.