From a diverse workforce pool to specialized industry expertise, hiring contractors in Colombia can offer a range of advantages for your company. Consider some best practices for hiring contractors to handle your project applications.
Hiring independent contractors in Colombia
To successfully find independent contractors for your company’s projects, you must understand some fundamentals about hiring these professionals. Keep these details in mind as you begin the process.
Independent contractors vs. full-time employees
Because they are legally self-employed, independent contractors do not function as a part of your organization like an employee would. Instead, they operate as their own business, providing selected services to your company.
Penalties for misclassification
If you misclassify full-time employees as contractors, your company risks legal repercussions. You could face lawsuits, fines, or retroactive benefits compensation to repay the employee. Because labor designations can vary depending on your unique situation, always consult labor laws before hiring independent contractors for a project.
How to hire independent contractors in Colombia
As you prepare for the hiring process, ensure you have a successful strategy in place to help support your objectives and find independent contractors that meet your company’s requirements.
1. Carefully conduct interviews
Hiring an independent contractor is a business-to-business transaction. You can expect these professionals to be highly knowledgeable and experienced in their respective fields, so customize your interview questions to your specific project needs. During the interview process, you can also discuss past projects they’ve completed and certifications and skill sets they maintain.
2. Create a service agreement
Under law codes in Colombia, you may hire a contractor for any legal services in the country. While a written contract is not legally stipulated, it’s important to create a formal agreement to set expectations for both parties. Outline these key service terms with your contractor:
- Pay rates and arrangements
- Services offered by the contractor
- Termination conditions
- Length of the contract
3. Introduce necessities
Extensive training programs can signify employer control over project completion, but you may offer a brief introduction to your company for your contractors. After establishing your service agreement, you can introduce your contractors to key players in the project, company tools they may use, and essential workflows.
How to pay independent contractors in Colombia
As distinct business entities, contractors cannot be on your employee payroll. Instead, you must pay them separately and find a secure way to provide compensation internationally, if applicable.
Payment arrangements will depend on the terms established in the service agreement. Many contractors will request a lump sum for completing the specified project, but there may be other stipulations to work with.
Terminating independent contractors
Labor laws in Colombia do not set any limitations on the duration of business relationships you may have with contractors. Standard practice is to end service on a set date or at the conclusion of a project. You and the contractor have the flexibility to extend or terminate your contract as needed.
At the same time, you should consider adding logistics around termination to your written agreement in case you need it in the future. Include a clause in your contract about both parties’ right to end the service agreement or extend it further.
Turn to Globalization Partners when hiring independent contractors in Colombia
As an extension of Globalization Partners’ Global Employment Platform™, G-P Contractor allows companies to hire anyone, anywhere, for both short- and long-term projects. Whether you’re hiring employees or contractors, we streamline the process with a single solution for your global workforce. Contact us to learn more.
THIS INFORMATION IS FOR INFORMATIONAL PURPOSES ONLY AND DOES NOT CONSTITUTE LEGAL OR TAX ADVICE. You should always consult with and rely on your own legal and/or tax advisor(s). Globalization Partners does not provide legal or tax advice and the information is not tailored to the specific situations of your company or your workforce. Globalization Partners makes no representations or warranties concerning the accuracy, completeness or timeliness of this information. Globalization Partners shall have no liability arising out of, or in connection with, the information, including any loss caused by use of, or reliance on, the information.