Littler (JD Supra Costa Rica)

Given COVID-19’s rapid spread and implications, employers are confronting difficult questions regarding how to handle safety and health rules, travel restrictions, privacy of employees’ health information, compensation, and other employment issues.

Amendment to Alimony Law Grants More Time to Pay Christmas Bonus - New Legislation Enacted - Law No. 9788, which was published and came into effect on December 12, 2019, amends the Alimony Law to allow debtors to pay the Christmas Bonus (called Aguinaldo) until December 21 of each year.

On August 27, 2019, the Legislative Chamber passed bill no. 21.141, called “Law to Regulate Remote Working,” which was published on the official gazette on September 30, 2019, as Law no. 9738. This law represents the first time that remote working is regulated for the private sector, although it is intended to apply to both public and private entities.

Costa Rica | Additional Provisions of the Tax Plan Enforceable as of July 1, 2019 - New Legislation Enacted - On July 1, 2019, additional provisions of Law No. 9635, commonly known as the “Fiscal Reform,” came into effect. Although part of the Law passed in December of 2018, these provisions were not enforceable until July 1.

Costa Rica: New Bill Proposes Paternity Leave - Proposed Bill or Initiative - In June 2018, the Legislative Chamber introduced a bill to establish paternity leave. Under this proposal, male employees would be entitled to a paid leave of five business days after the birth of their child or adoption of a minor.

On July 25, 2017, Law No. 9343, known as the “Labor Procedure Reform” (LPR), became effective. By amending 348 articles of the Labor Code, the LPR overhauls nearly half of the country’s labor and employment laws, representing the most important and substantial amendment to the Labor Code since its enactment in 1943.

On June 6, 2017, the Board of Directors of the Department of Social Security (this agency is also known as “CCSS”, for its acronym in Spanish) increased the pension contributions first by .5% effective July 1, 2017, and by an additional .5% as of January 1, 2018.

On October 31, 2016, Costa Rica’s National Wages Council (“Consejo Nacional de Salarios”) approved a proposal to change the formula and timeframe of wage increases for employees in the private sector. With the new methodology, minimum wages in the private sector will now increase only once per year, beginning on January 1, 2017.

El 15 de junio del 2016, el Consejo Nacional de Salarios aprobó un aumento al salario mínimo de 0.5%, correspondiente al segundo semestre del 2016 para los empleados del sector privado, excepto para las trabajadoras domésticas cuyo aumento es de 2%. El incremento se hará efectivo a partir de la primera quincena del mes de julio del 2016.

On June 15, 2016, Costa Rica’s National Wages Council (“Consejo Nacional de Salarios”) approved a 0.5% increase to the minimum wage for all private sector employees, except for domestic workers whose salaries will be increased by 2%.  This salary increase will be effective on July 1, 2016.

On January 25, 2016, the Labor Procedure Reform ("Reforma Procesal Laboral" or "RPL") was signed into law and published in the Costa Rica official gazette known as "La Gaceta."  RPL becomes effective on July 25, 2017, and overhauls nearly half of the country's labor and employment laws (collectively "labor laws").