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Permanent contract: when can an employer dismiss a worker?

Permanent contract: when can an employer dismiss a worker?

A lawyer explained on RCN Radio the legal causes for dismissal, the employer’s obligations and the worker’s rights. What did he say?

The dismissal of a worker with an indefinite-term contract is an issue that raises doubts for both employers and employees.

To understand how it can be carried out and what the legal obligations of companies are, RCN Radio consulted Nicolás Rojas, lawyer from the International Juridical Center, who clarified the key points according to the Substantive Labor Code and current Colombian legislation.

Rojas explained that, although the indefinite-term contract has no established end date, Yes, it can be terminated, as long as the causes established by law are met.

According to the article 61 of the Substantive Labor Codethe contract may end for various reasons, also applicable to work-based or fixed-term contracts, such as the death of the worker, mutual consent between the partiesliquidation or definitive closure of the company, suspension of activities for more than 120 days or unilateral decisions by the employer, as long as they comply with the regulations.

The lawyer highlighted that, despite the indefinite duration of the contractthe parties can terminate it, but the employer must justify the decision on specific causes. Furthermore, Article 62 allows unilateral termination with or without just cause.

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Just causes include acts of violence, insult, mistreatment, material damageserious breach of obligations and immoral acts.

However, Rojas emphasized that for the termination to be valid, it is mandatory to comply with the due labor disciplinary process, guaranteed by article seven of the Law 2466 of 2025, which allows the worker to present defenses and defend himself before dismissal.

Another fundamental aspect is to verify that the worker do not have labor protection, as in the case of mothers who are heads of households or workers during maternity periods. In these situations, the termination of the contract requires authorization from the Ministry of Labor.

Additionally, employers must address the 15 statutory causes established by law.

What should be taken into account?

Rojas also detailed the obligations of employers at the end of a contract. Documents that must be submitted include:

  • Labor certification: It must include identification of the company and the worker, position held, salary earned and time worked, without mentioning the cause of termination or disciplinary processes.
  • Peace and safety: certifies payment of social security and authorized discounts. Proof of social security payments for the last three months.
  • Exit exams: They allow us to know the health status of the worker and must be delivered within a period of five days.
  • Letter addressed to the compensation fund and certificate of severance pay, so that the worker can access legal unemployment benefits.

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Among the most common errors when terminating a contract, according to Rojas, are alleging a non-existent just cause, not complying with the requirements of Law 2466, omitting the discharge process and delaying or not making the settlement payment.

In case of ignorance of the worker’s address or refusal to receive the settlement, the company can make a judicial deposit to avoid penalties due to default.

The truth is that the dismissal of a worker with an indefinite-term contract is possiblebut it requires compliance with legal grounds, due process and delivery of documents that protect both the worker and the employer. Ignoring these steps can lead to legal disputes and financial penalties.

Therefore, the support of experts in labor law and rigorous documentation management are key to ensure that the termination of the contract is done correctly and safely.

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