Costa Rica maintains a comprehensive legal framework designed to protect the rights and ensure the well-being of workers. Rooted in the Labor Code, these regulations establish clear standards for employment relationships, covering everything from hiring and daily working conditions to termination and dispute resolution. Employers operating in Costa Rica are legally obligated to adhere to these standards to foster fair and equitable workplaces and ensure compliance with national law.
Understanding and implementing these protections is crucial for any employer, whether local or international. Compliance not only fulfills legal requirements but also contributes to a positive work environment, enhances employee morale, and mitigates potential legal risks. The following sections detail key aspects of worker rights and protections in Costa Rica.
Termination Rights and Procedures
Employment contracts in Costa Rica can be terminated for various reasons, including mutual agreement, resignation, justified dismissal, or unjustified dismissal. The Labor Code outlines specific procedures and entitlements depending on the cause of termination.
In cases of termination without just cause by the employer, or resignation by the employee under specific circumstances (e.g., employer breach), the employee is typically entitled to severance pay (cesantía) and preaviso (notice pay) if proper notice was not given.
Notice Period (Preaviso)
The required notice period depends on the employee's length of service:
| Length of Service | Notice Period Required |
|---|---|
| Less than 3 months | None |
| 3 to 6 months | 1 week |
| 6 months to 1 year | 2 weeks |
| 1 year or more | 1 month |
If the employer terminates the contract without providing the required notice, they must pay the employee an amount equivalent to the salary for the corresponding notice period.
Severance Pay (Cesantía)
Severance pay is calculated based on the employee's average salary over the last six months or the last month, whichever is more favorable to the employee, multiplied by the number of years of service. The calculation is typically capped at a maximum equivalent to 8 years of service, though collective bargaining agreements may offer more favorable terms. Cesantía is generally payable upon unjustified dismissal or resignation under specific employer breaches.
Anti-Discrimination Laws and Enforcement
Costa Rican law prohibits discrimination in employment based on several protected characteristics. Employers are required to provide equal opportunities in hiring, promotion, training, and all other aspects of employment.
Protected Classes
Discrimination is prohibited based on, but not limited to:
- Race or ethnic origin
- Religion
- Gender
- Sexual orientation
- Marital status
- Age
- Political opinion
- Disability
- National origin
Enforcement of anti-discrimination laws falls under the purview of the Ministry of Labor and Social Security (MTSS) and the labor courts. Employees who believe they have been subjected to discrimination can file complaints with the MTSS or initiate legal action.
Working Conditions Standards and Regulations
The Labor Code establishes standards for working hours, rest periods, holidays, and minimum wage to ensure fair working conditions.
Working Hours
Standard working hours depend on the type of shift:
- Day Shift: Up to 8 hours per day, 48 hours per week.
- Mixed Shift: Up to 7 hours per day, 42 hours per week.
- Night Shift: Up to 6 hours per day, 36 hours per week.
Overtime work is permitted but is subject to limits and must be paid at a rate of 1.5 times the regular hourly wage.
Minimum Wage
Minimum wages are set periodically by the government based on different job categories and are mandatory for all employers.
Holidays and Vacation
Employees are entitled to paid national holidays. After 50 weeks of continuous service with the same employer, employees are entitled to a minimum of two weeks of paid vacation.
Workplace Health and Safety Requirements
Employers have a legal obligation to provide a safe and healthy working environment for their employees. These requirements are detailed in the Labor Code and specific health and safety regulations.
Employer Obligations
Key employer responsibilities include:
- Identifying and mitigating workplace hazards.
- Providing necessary safety equipment and protective gear.
- Ensuring proper maintenance of machinery and facilities.
- Implementing safety protocols and emergency procedures.
- Providing employees with adequate training on health and safety procedures relevant to their roles.
- Reporting workplace accidents and occupational illnesses to the National Insurance Institute (INS).
Compliance is monitored by the MTSS and the INS. Failure to comply can result in penalties and liability in case of accidents or illnesses.
Dispute Resolution Mechanisms for Workplace Issues
When disputes arise between employers and employees, several mechanisms are available for resolution, aiming to provide fair and accessible recourse.
- Internal Procedures: Many companies have internal policies or human resources departments that can facilitate initial discussions and resolution attempts.
- Ministry of Labor and Social Security (MTSS): The MTSS offers administrative channels for dispute resolution, including conciliation and mediation services. Employees can file complaints regarding alleged labor law violations, and the Ministry can investigate and facilitate negotiations.
- Labor Courts: If administrative or internal resolution is unsuccessful, employees have the right to file a lawsuit in the specialized labor courts. These courts handle cases related to unjustified dismissal, unpaid wages, discrimination, and other labor disputes, issuing binding judgments.
Employees are protected against retaliation for filing complaints or pursuing legal action regarding labor rights violations.
