Costa Rica Labor Law

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Hiring Employees

Costa Rica Labor Code on Hiring Employees

Hiring Employees

The Costa Rica Labor Code is a detailed document with detailed provisions covering all aspects of hiring employees for your business, household, institution, etc. Here are the general provisions of the Costa Rica Labor Code applying to hiring employees.

  • Christian Principles

    The Labor Code is based on the Christian principles of social justice detailing both the obligations and rights of the employers and employees.

  • Definitions Of Employer, Employee, Intermediary

    The Code defines an employer as “any natural or legal, private or public law, which employs the services of another or others, under an employment contract, express or implied, oral or written, individual or collective." The Code also states that an "intermediary" is someone who helps engage another person as an employer for a job, services, etc.

    An employee is an individual who offers material and intellectual services as part of an employment contract. The Costa Rica Labor Law recognizes the contract whether it is written or oral, express or implied, individual or collective.

  • Liberty To Work

    The Costa Rica Labor Code allows individuals all freedom to work within the framework of the country's laws without curtailing the rights of others or being offensive. However, employees are not allowed to work towards setting up establishments dealing in drugs, drinking, gambling, prostitution, etc. The prohibition is limited to at least three miles of an area from an established industrial area.

  • Exceptions to Labor Law

    There are companies and establishments that enjoy some relaxations from Costa Rica Government due to development or other initiatives. However, these concessions do not allow the employers or employees to circumvent the Costa Rica Labor Code and infringe the rights of any individual.

  • Disputes Beyond Scope Of Labor Code

    The Costa Rica Labor Code also specifies that in case a dispute arises on a subject that has not been covered by the Labor Code, then the case has to be resolved according to the general principles of local custom, usage, equity and Labor Law. The Costa Rica Labor Code has been developed along the guidelines of the International Labor Organization in keeping the local customs, social and legal set-up in mind. The final word in cases of all dispute has to be based on the laws of social welfare.

  • Obligations Of Employer And Employee

    The Costa Rica Labor Law has detailed an employer's obligations for hiring employees relating to employee holidays, maternity leave, social security, etc. The Labor Law is strictly imposed in Costa Rica and is slightly more favorable to the employees as the labor costs are very low. The Government ensures that employees get other benefits to offset the low salary. However, the employee too cannot get away with damage. An employer is obliged to make Social Security contributions for employees, or pay for the worker's illness and injury. The Government has issued a detailed list for designations, qualifications, and minimum wages.