Everything about Costa Rican Labor Laws content appears on the Labour Code which defines and regulates rights and obligations of employers and workers. The Ministry of Labour and Social Security is the government agency responsible for enforcement of labor laws. Wages in the Republic of Costa Rica to pay wages is not fortnightly and monthly basis as in most countries. The National Wages Council is responsible for determining minimum wages of workers by activity and make adjustments every six months, according to the general price index and the financial capacity of each production sector.
The sector employer must make deductions from 9% of gross wages of the worker and 25% is borne by the employer. Of total wages withheld by the company 31% are used by the Government to fund social security programs.
The bonus, also called thirteenth month is an obligation of the employer and a worker's right, as annual economic benefit equivalent to one month's salary, or possibly in proportion to the time worked during the year. This bonus is paid during the month of December.
addition, among other costs borne by the employer are paid holidays and work injury insurance.
Table 7. Minimum wage - I half of 2007
11 Source: Guide to Costa Rica, prepared by the Commercial Office of Spain in Panama in January 2006. Ministry of Labour and Social Security of Costa Rica. Updated 12/10/2008.
Working hours and holidays
The working day is between five and nineteen hours and night between the nineteenth and five hours.
During the day, the workday may not exceed eight hours. The maximum workday is 6 hours at night. More than eight hours of daytime working hours or more than six hours are considered nighttime hours of work which, together with the ordinary, may not exceed twelve hours.
Under the Labour Code, all workers are entitled to paid holidays for a period of two weeks for every fifty consecutive weeks of work serving the same employer or 1 day that month, accrue 12 days per year. On termination of the employment contract, due to the employee a vacation day for each month worked.
Contract Types
Employment contracts may be oral, written, individual or collective. Regarding the duration of the contracts may provide for a specific period, indefinitely or for a specific task.
Status of Foreigners
The Constitution of Costa Rica states that aliens have the same rights and individual and social duties as Costa Ricans, with the exceptions and limitations that the Constitution itself and the rest of the laws. Foreigners may apply for citizenship when they take five years Costa Rican living in the country. If you are English simply two years of residence.
Foreigners wishing to work in Costa Rica require a work permit. This work permit is not readily available, being the necessary steps to involve a long and cumbersome.
social insurance
The Social Security Fund is the entity responsible for compulsory social security scheme for all workers and they cover sickness, maternity, invalidity, old age and death. Self-employed workers can join the system voluntarily.
The contributions of social insurance paid by both the company and the worker. The contributions of direct insured are mandatory and are 5.5% for sickness and maternity, and 2.5% for disability, old age and death. For their part, employers are required to deduct from the salaries of employees 9% and the Employer contributes 22%. The Social Security Fund is responsible for distributing the 31%, a percentage for disease and another percentage for disability, old age and death, and other levels to move to other institutions, that 31% should enter the following month to which they relate.
professional risk insurance is administered by the National Institute Insurance is paid by the employer and amounts to 0.58% pa on salary and other percentages are applied based on the risk to the worker in the different types of work.
Termination of the employment relationship
The employer may freely dismiss employees without management responsibility, where there is cause, and employer liability when there is no cause, provided that the following requirements:
- The notice: in the contract for an indefinite period, both the employer and the employee can terminate the contract without just cause, warning or anticipation in accordance with the following rules:
1. After continuous work, not less than three months nor more than six, should be given a minimum of one week's notice.
2. After continuous work, more than six months and less than one year, give notice of at least a fortnight.
3. After continuous work a year or more, give at least one month notice.
when the worker is fired or resigns, is entitled to one day a week to find work, up to 4 days during the month of notice.
- The unemployment: if the employment contract concluded for an indefinite period on grounds of unfair dismissal or other cause beyond the control of the employee, the employer shall pay him a "help severance pay, "according to the following rules:
1. After continuous work no less than three months nor more than six, the employer shall pay the employee an amount equal to ten days' salary.
2. After continuous work longer than six months but less than one year, pay the employee an amount equal to twenty days' salary.
3. After continuous work over a year, pay the worker an amount equal to one month's salary per year of unpaid work or less than six months.
4. In no case may exceed this aid eight months salary. The unemployment benefit is payable even if the worker go immediately to serve the orders of another employer.
General characteristics Workforce
labor force in Costa Rica is relatively well educated, skilled and easily trained for a long time government has invested in public education. The National Training Institute (INA) and the private sector provide technical and vocational training.
INA centers provide training in repair of textile machinery, electronic assembly and repair, general mechanical maintenance and repair of diesel and gasoline and maintenance. There is another training-oriented fisheries, agro-business management and hotel services and tourism.
Costa Rica has a wide range of professionals, university-educated Costa Ricans and foreigners. This professional base is the largest in Central America and is among the largest and most diversified
Latin America and the Caribbean.
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