Incentives For Companies That Hire Refugees

Author:Ms Anna Karina Jiménez and Gloria Leandro
Profession:Dentons
 
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The United Nations High Commissioner for Refugees (UNHCR) and the Ministry of Labor and Social Security (MTSS) have established, through a program called Employment Integration (Intégrate al Empleo), that those companies who sign an agreement with these institutions will receive an economic incentive for each refugee they hire. This incentive is ₡500,000 colones (approximately USD$869) for each refugee employee they hire. This program is in response to the recent increase in the flow of Nicaraguans to Costa Rica, who have had to leave their country due to the current political situation in that neighboring country.

The companies wishing to participate in this program must be up to date with their tax and social obligations, as well as registered with the Costa Rican Social Security Administration (CCSS).

The program provides that the company's payroll must increase with these hirings, that is, there can be no substitutions of the company's current employees to grant work to the refugees. Only full time refugee hires are accepted.

The economic incentive will be given to the company in a single installment at the end of the three months following the hiring. If the refugees do not comply with the employment contract and must be dismissed before these three months, the company will not receive the money.

The Employment, Labor & Immigration Practice of Dentons Muñoz Costa Rica offers legal advice relating to:

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