Hiring staff through an employer of record (EOR) in Colombia will avoid the necessity of incorporating a company when developing commercial activities for a short period of time and will support you with time-consuming HR tasks.
Colombia is Latin America’s fourth-largest economy, with a gross domestic product (GDP) of $324 billion (USD), and has emerged in recent decades as a prime investment destination in the region. The South American nation maintains free trade agreements (FTAs) with 47 key markets and is currently negotiating an FTA with Australia.
Furthermore, in April 2020, the country officially became the 34th member of the Organisation for Economic Co-operation and Development (OECD), after introducing significant reforms to align its policies and practices to OECD standards.
If you are considering entering the market on a smaller-scale or temporary basis that doesn’t warrant starting a business in Colombia, hiring an EOR is an option that you must consider.
Why hire staff through an EOR in Colombia?
An EOR in Colombia will be the official employer in the eyes of the government and will manage all tasks involved in the hiring process. This includes recruiting, hiring, firing, managing employee payroll, and paying all taxes and social benefits related to those local employees. At the end of the contract, the EOR will pay staff severance, accrued vacations that were not taken, and any other outstanding legally obligated payment.
Moreover, with extensive knowledge of local labor law, an EOR will make sure all employee contracts comply with current legislation and will advise you on which is the best contract for each worker.
Benefits of working with an EOR
Hiring staff through an EOR in Colombia guarantees foreign companies a hassle-free market entry, avoiding delays, extra costs, and legal problems. An EOR in Colombia will also carry out the onboarding and registering processes of employees with all relevant local entities. Other benefits of hiring an employer of record include:
- You won’t need to incorporate an entity in Colombia, at least not necessarily to establish your presence in the country
- Your company’s employees will have the social benefits established by Colombian legislation, helping your business remain competitive in the local job market
- With sufficient knowledge of the local market, an EOR will be able to find the most suitable and qualified personnel for your company.
- All claims related to the employees will be directed to the EOR that represents your business
- You will be provided with professional advice on matters concerning employee hiring, job compliance, constructive dismissal claims, and employee well-being
Hire local staff in Colombia with the help of Biz Latin Hub
At Biz Latin Hub, we offer a full suite of customized back-office services, including high-quality recruitment services, accounting, and tax advisory. Our team of multilingual legal specialists is equipped to assist you with payroll and human resource administration requirements. Reach out to us now for more information on how we can help you throughout the recruitment and hiring process in Colombia.
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