Working in Costa Rica: Some Things to Note

With the increasing rate of popularity of Costa Rica’s Free Trade Zones, and the number of companies that are gradually relocating to the country, Costa Rica has become a prime destination for expatriate workers. If you have decided to do a short stint (or a long one) working in Costa Rica, it is important to know the laws and regulations guiding foreign nationals who intend to work in the country.

If you are planning to travel to Costa Rica primarily for the purpose of working there, you would need a work permit issued by the Immigration Office. If you already have employment, whether from a local company or a foreign company located in Costa Rica, the process of obtaining the work permit should have begun on your behalf by the company offering employment, even before you arrive in Costa Rica.

The accepted practice under Costa Rican law is that there should be a written contract of employment between the employer and the employee and there are certain clauses which must be included in the employment contract so that it will comply with the labor regulations. However, even where there has been no formal employment contract that does not necessarily mean that there is no employment relationship between parties concerned.

Under Costa Rican law, there are certain instances where either an employer or an employee may terminate employment. An employer has the power to unilaterally terminate the contract of an employee. Where that happens, the employee is entitled to severance benefits. Also, if the employee breaches the terms of the contract under the Labor Code, the employer can dismiss such an employee in which case, that employee will not be entitled to any severance benefits.

Where an employee resigns of his or her own will, that employee automatically forfeits any severance benefits. But if the employer acted unfairly, then the employee may resign and still be entitled to severance benefits.

When deciding appropriate severance benefits, the length of notice and length of service are taken into consideration. After twelve months of continuous service, an employee is entitled to one month’s salary upon termination of employment. If no advance notice has been given, the employer may allow the employee to work and receive the usual salary for that period. But this is at the employer’s discretion.

The length of service also determines how much salary an employee would be entitled to when a contract is terminated; if that employee is entitled to any severance benefits. These are all contained in the Labor Code, including the minimum wages, vacation and leave options.

If you have decided to relocate to Costa Rica to work, be sure to get a qualified legal practitioner to look through your employment contract to be sure that it is in accordance with the Labor Code. Furthermore, contact Caldwell Banker Vesta Group in Jaco for information on a Los Suenos condo or other suitable Costa Rica real estate. It could all be arranged for you even before you come to Costa Rica.