Terminating employment contracts in Colombia is possible, and it is important to consider certain key aspects to ensure legal compliance and avoid future legal disputes. Below are some points to consider:
First, it is necessary to validate the type of termination intended, that is, whether it corresponds to an objective cause for termination, just cause, or, failing that, there is neither an objective cause nor just cause for it. In the first option, one of the conditions set forth in the numerals of Article 61 of the CST must be met, some of which are: the death of the worker, mutual consent, expiration of the agreed fixed term, and completion of the work or contracted labor. In the second option, that is, termination for just cause, there must be an action or omission by the worker that can be classified within the just causes set forth in Article 62 of the CST, together with the serious misconduct set forth in the company's internal regulations or signed employment contracts. If it does not fit into any of the above and termination is still intended, it would be considered termination without just cause, which entails an additional indemnification on top of the final settlement.
Second, it is recommended to verify that the person whose contract is intended to be terminated, whether with or without just cause, does not have reinforced labor stability protection (fuero), since if the person has any type of protection such as pre-retirement, health, union, maternity, among others, the termination could become illegal, and in the event of litigation, reinstatement and payment of unpaid wages could be requested.
Third, an aspect to consider when carrying out the termination is to verify whether the worker must be notified in writing, which applies mainly when a fixed-term contract has been agreed and termination is sought due to the objective cause of expiration of the agreed fixed term. For this, a prior notice must be given at least 30 days before the end of the agreed term.
Fourth, it is important to correctly calculate the settlement of social benefits, which include: severance pay (cesantías), interest on severance pay, service bonus (prima de servicios), and vacation pay if owed. To do so, the following must be verified: 1) the correct basis for calculating each concept, 2) the period of time to be settled for each social benefit, and 3) whether any wages are owed.
Fifth, it is essential to review whether, according to the type of termination, there is an obligation to pay any indemnification, especially in cases of dismissal without just cause. In these cases, the type of contract that was signed must first be determined, and then the method of calculation must be determined in accordance with Article 64 of the CST, since the calculation method changes depending on whether it is a fixed-term, indefinite-term, or work-and-labor contract.
Sixth, it is important that the employer carrying out the termination of the employment contract fulfills all its obligations, such as being up to date with the payment of social security contributions and social benefits. If up to date, it must issue and deliver to the departing worker: a clearance certificate (paz y salvo), authorization for exit medical examinations, authorization for withdrawal of severance pay, proof of payment of all social security contribution forms, and a labor certificate stating the period of service, position, duties, and salary earned, as well as a copy of the termination letter and the receipt of the settlement to the worker's satisfaction.
Finally, it must be considered to request the return of company property from the worker, that is, if the worker has used or received equipment, tools, or other objects owned by the company, ensure that they are returned before the termination of the contract. Likewise, it is important to ensure that all necessary legal and administrative procedures are carried out to report the termination of the contract to the relevant authorities, such as the withdrawal from social security, and to make the necessary adjustments in the company's records.