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Dismissal and severance in Colombia: just cause, compensation without cause, late payment penalties and protected workers

Last verified: 2026-10-26 · Status: Stable

Colombian employers can end a contract at any time, but without a just cause listed in the Labor Code they owe compensation: the rest of the term on a fixed term contract, or on an indefinite contract 30 days' pay for the first year and 20 for each later year (20 and 15 for workers earning 10 minimum wages or more). Final pay that is not settled on termination triggers a penalty of one day's salary per day of delay for up to 24 months. Pregnant and new mothers, partners of pregnant women without formal jobs, workers with disabilities, union leaders and harassment complainants have reinforced protection, and collective dismissals need Ministry of Labor approval.

USD figures use the TRM (tasa representativa del mercado) of COP 3,158.43 per US dollar, valid 24 to 26 October 2026, from the official TRM series published by the Superintendencia Financiera on the national open data portal (datos.gov.co). Conversions are for orientation only.

Key facts

Dismissal without cause, indefinite contract, under 10 minimum wages: first year	30 days of salaryCST art. 64 (Ley 789 de 2002 art. 28), as of 2026-10-26 · in force
Dismissal without cause, indefinite contract, under 10 minimum wages: each later year	20 days of salaryCST art. 64 (Ley 789 de 2002 art. 28), as of 2026-10-26 · in force
Dismissal without cause, 10 minimum wages or more: first year	20 days of salaryCST art. 64, as of 2026-10-26 · in force
Dismissal without cause, 10 minimum wages or more: each later year	15 days of salaryCST art. 64, as of 2026-10-26 · in force
Statutory cap on dismissal compensation	none CST art. 64, as of 2026-10-26 · in force
Late final pay penalty: one day's salary per day of delay, maximum period	24 monthsCST art. 65 (Ley 789 de 2002 art. 29), as of 2026-10-26 · in force
Extra indemnity for dismissal during maternity protection without authorization	60 days of salaryCST art. 239 num. 3, as of 2026-10-26 · in force
Indemnity for dismissal because of disability without authorization	180 days of salaryLey 361 de 1997 art. 26, as of 2026-10-26 · in force
Collective dismissal threshold, more than 1,000 workers, within six months	5 %Ley 50 de 1990 art. 67 num. 4, as of 2026-10-26 · in force

The rule

1. Just causes for immediate termination by the employer are listed in the Code and include false certificates at hiring, violence or serious indiscipline, intentional damage, serious breach of the worker's obligations or of the internal rules, pretrial detention over 30 days, disclosure of trade secrets, deficient performance not corrected after the employer's request, ineptitude and recognition of a retirement or disability pension, among others; for causes 9 to 15 (performance, ineptitude, pension, prolonged illness and similar) the employer must give at least 15 days' notice. The party ending the contract must state the cause in writing at the time and cannot later add others.Código Sustantivo del Trabajo (art. 62 as amended by Decreto 2351 de 1965 art. 7), Art. 62 and 66, 1950-08-05 official text · verified 2026-10-26

2. Termination without just cause, or resignation by the worker for a just cause attributable to the employer, triggers compensation. Fixed term contract: salary for the time left. Works contract: salary for the time left to finish, not less than 15 days. Indefinite contract, salary under 10 minimum wages: 30 days for the first year plus 20 days for each later year and pro rata. Salary of 10 minimum wages or more: 20 days plus 15 for each later year.
Cost to do it: On COP 8,000,000 a month after 5.5 years: 120 days, COP 32,000,000.
Example: 30 + 20 x 4.5 = 120 days at COP 266,667 a day = COP 32,000,000. / About US$10,131.62.Código Sustantivo del Trabajo, as amended by Ley 789 de 2002, Art. 64 (Ley 789 art. 28), 2002-12-27 official text · verified 2026-10-26

3. If on termination the employer does not pay the salaries and benefits owed (except legally authorized retentions), it owes the worker one day of the last salary for each day of delay, for up to 24 months; if after 24 months the worker has not sued, or no judgment has been issued, moratorium interest at the maximum rate for free assignment loans certified by the financial superintendency accrues instead from month 25. For workers earning one minimum wage or less the original text applies: one day's salary per day of delay until payment, without the 24 month limit.
Example: Final pay of a worker on COP 8,000,000 paid 20 days late: penalty COP 5,333,333. / About US$1,688.60.Código Sustantivo del Trabajo, as amended by Ley 789 de 2002, Art. 65 (Ley 789 art. 29), 2002-12-27 official text · verified 2026-10-26

4. Pregnancy and maternity: no worker may be dismissed for pregnancy or breastfeeding without prior Ministry of Labor authorization based on a just cause. Dismissal during pregnancy or within 18 weeks after childbirth is presumed to be for that reason; without authorization the worker gets an extra 60 days' pay on top of other compensation. The same protection covers a worker whose spouse or partner is pregnant or within 18 weeks after childbirth and has no formal job, once the employer is notified.
Cost to do it: Extra 60 days' pay: COP 16,000,000 on COP 8,000,000 (US$5,065.81), on top of art. 64 compensation.Código Sustantivo del Trabajo, as amended by Ley 1822 de 2017 and Ley 2141 de 2021, Art. 239 and 240, 2021-08-10 official text · verified 2026-10-26

5. Workers with disabilities may not be dismissed because of their disability without authorization from the labor office; a dismissal in breach gives the right to 180 days' pay in addition to other compensation.
Cost to do it: 180 days' pay: COP 48,000,000 on COP 8,000,000 (US$15,197.42).Ley 361 de 1997, Art. 26, 1997-02-11 official text · verified 2026-10-26

6. Union leaders and founders hold fuero sindical: they cannot be dismissed, demoted or transferred without a just cause first approved by a labor judge. Protection covers founders until two months after registration (maximum six months), up to five principal and five alternate board members for their term plus six months, and two members of the grievance committee.Código Sustantivo del Trabajo, Art. 405 and 406 (Ley 584 de 2000 art. 12), 2000-06-14 official text · verified 2026-10-26

7. A worker who files a workplace or sexual harassment complaint, and witnesses, is protected for six months after the complaint: a dismissal in that period has no effect once the competent authority verifies the facts of workplace harassment, and for sexual harassment, dismissal during the process or within six months is presumed retaliation and can be fined 1 to 5,000 daily minimum wages.Ley 1010 de 2006; Ley 2365 de 2024, Ley 1010 art. 11 num. 1; Ley 2365 art. 14, 2024-06-20 official text · verified 2026-10-26

8. A collective dismissal needs prior Ministry of Labor authorization, which must decide within two months. It is collective when, within six months, it affects 30 percent of workers in companies with 11 to 49 workers, 20 percent with 51 to 99, 15 percent with 101 to 199, 9 percent with 201 to 499, 7 percent with 501 to 999 and 5 percent above 1,000. An unauthorized collective dismissal has no effect. When authorized, the art. 64 compensation is owed, reduced by half for employers with taxable net equity under 1,000 minimum wages.Ley 50 de 1990 (replacing Decreto 2351 de 1965 art. 40), Art. 67, 1990-12-28 official text · verified 2026-10-26

9. Before any disciplinary dismissal the employer must follow the due process of CST art. 115: written charges, delivery of the evidence, at least five days to respond, a reasoned decision and the right to challenge.Código Sustantivo del Trabajo, as amended by Ley 2466 de 2025, Art. 115 (Ley 2466 art. 7), 2025-06-25 official text · verified 2026-10-26

Years of service	Under 10 minimum wages (days)	10 minimum wages or more (days)
1	30	20
2	50	35
3	70	50
5	110	80
10	210	155
20	410	305

Compensation for dismissal without just cause on an indefinite contract (CST art. 64)

Worked example

A company dismisses without cause an analyst on COP 8,000,000 a month (under 10 minimum wages) after five and a half years on an indefinite contract. It owes 120 days, COP 32,000,000 (about US$10,131.62), plus accrued severance, interest, service bonus and vacation on the last day. If the final settlement is paid 20 days late, the penalty adds COP 5,333,333 (US$1,688.60).
Had the analyst been pregnant, the company would first need Ministry of Labor authorization; dismissing without it adds 60 days' pay (COP 16,000,000).

Step by step

1. Check protected status before deciding: pregnancy or partner's pregnancy, disability, union office or a harassment complaint in the last six months.
2. If the cause is misconduct, run the CST art. 115 disciplinary procedure and document it.
3. Deliver a termination letter stating the cause (or that it is without cause) on the last day (CST art. 66).
4. Pay the final settlement on the last day: salary, severance not yet deposited, interest, service bonus, vacation and any art. 64 compensation, to avoid the art. 65 daily penalty.
5. Report the withdrawal in PILA and deliver the employment certificate; for collective reductions, file with the Ministry of Labor before acting (Ley 50 art. 67).

Common traps

The late payment penalty is the costliest mistake. One day's salary per day of delay for up to 24 months (CST art. 65) can exceed the dismissal compensation itself.
Fixed term contracts are not cheap to end early. Without cause the employer pays the salary for the whole remaining term (CST art. 64).
Unnoticed reinforced stability. Dismissing a worker because of a disability without the labor office's authorization costs 180 days' pay on top of other compensation (Ley 361 art. 26).
Splitting a restructuring into waves. The collective dismissal thresholds count every dismissal within six months (Ley 50 art. 67 num. 4).
Reasons added later. Causes not stated at termination cannot be invoked afterwards (CST art. 66).

Sources

← Social security and payroll levies in Colombia: pension, health, occupational risk, family fund, SENA and ICBFUnions and collective bargaining in Colombia: forming a union, union leader protection, bargaining, strikes and the suspended sector bargaining decree →