A compliant independent contractor agreement for hiring in Colombia

Answering all your questions about independent contractor agreements in Colombia

You probably have questions. We’re here to answer them. Below, you’ll learn all the extra stuff you should probably know before putting together an independent contractor agreement for Colombia.

Why do I need an independent contractor agreement in Colombia?

Independent contractor agreements should be the foundation of any business relationship with a contractor. They typically specify the scope of work, deadlines, compensation, and any other terms relevant to your partnership.

While Colombian law does not require contractors and businesses to have written agreements, it’s best to have one anyway. Written agreements hold you and a contractor accountable to each other, protecting you both legally if one party violates the terms of the contract. To protect you from misclassification risk and liability in Colombia, your written agreement might note that you do not control how the contractor completes work, their working hours, and that you will only release payment after the submission of an invoice.

In short—it’s always best to have a written agreement with contractors, everywhere you hire.

What do contractor agreements in Colombia typically need to have?

Every contractor agreement in Colombia (and, the rest of the world) can be broken up into two parts:

• Contract-specific variables: This includes things like scope of work, rate, and deadline. They’re the project-specific variables that you’ll include with each contract, and are totally dependent on what type of work you’re hiring a contractor to do.
• ‍Everything else: Besides things like scope and deadline, every independent contractor agreement in Colombia should follow a similar structure. If you want to grab your own contract with a compliant structure for Colombia, sign up to Thera

What makes contractors different from employees in Colombia?

Usually, hiring independent contractors saves companies time, money, and stress compared to onboarding a new employee. There are several important differences between the two beyond the hiring stage, though.

Here are a few of the key things that make contractors different from employees in Colombia:

• Contractors can set their own schedules
• Contractors can work with their own software and tools
• Contractors can work for other clients
• Contractors rarely receive benefits, like health insurance*

In general, working with contractors allows more flexibility than a traditional employer-employee relationship. Contractors may complete their work when and how it is most convenient for them within the terms of your independent contractor agreement. Meanwhile, you incur less risk than hiring a new employee, as you are only committed to a contractor for the duration of your written agreement. This affords you the ability to work with the best talent for your company, and Thera can help with each new contract you need.

*With Thera, you can get your contractors access to sign up for premium global health insurance, from SafetyWing, at a 50% discount.

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