Personal Data Protection in Costa Rica: Key Compliance Considerations
Costa Rica has established a legal framework for the protection of personal data, primarily through Law No. 8968 (Law on the Protection of the Person regarding the Processing of Personal Data) and its regulations. Oversight and enforcement are entrusted to the Agencia de Protección de Datos de los Habitantes (PRODHAB), the national data protection authority. […]
Internal Data Protection Policies in Costa Rica
A clear and updated internal data protection policy is an essential component of any company’s operations in Costa Rica. Such policies provide data subjects with the assurance that their personal data will be handled safely and in accordance with defined procedures and security measures. At the same time, they serve as a practical internal framework […]
Permitting Requirements for Operating a Business in Costa Rica
Businesses operating in Costa Rica are subject to a series of permitting and registration requirements that must be fulfilled in order to lawfully carry out their activities. These obligations apply regardless of whether the business operates from owned or leased premises, and they are essential to ensure compliance with local regulations and to avoid interruptions […]
Solidarian Associations as an Employment Benefit in Costa Rica
Having a Solidarian Association (Asociación Solidarista) within a company is widely regarded as an important employment benefit in Costa Rica. For many candidates, the existence of such an association is a key factor when evaluating job opportunities, and it is often one of the first questions raised during recruitment processes. Employers frequently find that offering […]
Special Protection Against Discrimination and Sexual Harassment in the Workplace
SPECIAL PROTECTION Certain employees cannot be terminated at will and may only be dismissed for cause with prior authorization from the Ministry of Labor and Social Security (MTSS). Protected categories include: Labor Courts may order precautionary reinstatement during litigation. If the dismissal is found to be discriminatory, employers may owe compensation of up to 24 […]
Disciplinary Actions
Time limit: By law, there is a statute of limitations to apply disciplinary actions which obliges to execute the decision within the next month from the date in which the employer learned about the infringement. Internal rules: Internal rules and policies must be documented and previously acknowledged by employees to be enforceable. Scale: different disciplinary […]
Distinguishing Employees from Independent Contractors Under Costa Rican Labor Law
Costa Rican labor law provides strong employee protections and applies a substance-over-form approach when determining whether a services’ contractual relationship qualifies as employment. For employers, correctly classifying workers is essential, as misclassification can trigger substantial labor obligations and risks, regardless of how the contract is labeled, as substance governs over form. Under the Costa Rican […]
Statutory Employee Leaves
– 3 working days: death of spouse/partner, parent, or child (1st-degree kin/affinity).– 1 working day: death of grandparents, grandchildren, siblings, in-laws, great-grandparents, great-grandchildren, uncles, nephews (2nd–3rd degree kin/affinity). – General illness (Social Security -CCSS-): Employer pays 50% of the salary for the first 3 days; from day 4, CCSS pays up to 60% of the […]
Termination of Employment Under Costa Rican Labor Law: Key Considerations
Costa Rica does not follow a pure “employment at will” system as understood in some jurisdictions. While employers and employees may generally terminate the employment relationship at any time, Costa Rican labor law imposes significant statutory protections and mandatory severance obligations, particularly in cases of termination without cause. Certain categories of employees benefit from heightened […]
Working Hours Under Costa Rican Labor Law
Maximum Workweek: Employees may not work more than 48 hours per week during day shift. Employers must provide one day off every six consecutive workdays. Work on a scheduled day-off requires double pay.