In Colombia, employee termination comes with specific protections and benefits designed to support workers during transitions. Key aspects include severance funds.
Cesantías (Severance Fund):
Contribution: Employers are mandated to deposit 8.33% of an employee’s annual salary into a severance fund known as cesantías. This deposit must be made by February 14th of each year.
Access: Employees can access this fund for various purposes, including:
Unemployment: If the employee loses their job.
Home Purchase: To assist in buying a home.
Higher Education: To support educational expenses.