Costa rica
Fixed Term Contracts are permitted in Costa Rica but only allowed for a maximum length of one year. However, if the role requires specialized technical training or preparation, the fixed term contract can be extended up to 5 years. If a Worker continues to work beyond the expiration of the fixed-term contract will automatically characterize it as an indefinite contract.
Workers recognize 9 paid public holidays, with an additional 2 public holidays are paid for salaried Workers but not hourly workers. Workers are entitled to double-pay for regular and overtime hours worked on a holiday. Workers are entitled to up to four unpaid holidays per year for other religious holidays.
Workers are entitled to two weeks of paid vacation for every 50 weeks worked (or at least one day for each month worked prior to the 50-week mark). Workers generally must be permitted to take the entire vacation in one continuous period unless both sides agree otherwise. Accrued but unused vacation is paid out at termination.
There are no official subcategories of workers in Costa Rica.
A probationary period is allowed to be included only in indefinite employment contracts. Generally, the probationary period is 30 days but can have a maximum length of 3 months and cannot be extended. During the probationary period, the employment contract can be terminated without cause or severance pay.
Workers are entitled to paid sick leave if they have contributed to social security the month prior to falling ill or becoming injured. Workers must be paid at least 50% of their salary during the first three days of leave. The government pays the remainder sick leave and requires the Worker to submit a medical certificate.
Generally, a regular workweek is 8 hours per day and 40 hours per week. However, it can be increased to 10 hours per day for a limit of 48 hours per week if it is not considered unhealthy or dangerous. Night shifts have a maximum of 6 hours per day and 36 hours per week. Overtime hours must be compensated at least at 150% and cannot be more than 4 hours a day.
Overtime hours must be compensated at least 150%.
Workers are entitled to a 13-month salary equal to one month’s salary to be paid within the first 20 days of December.
Workers may be dismissed for any reason. If the dismissal is without just cause, the Worker is entitled to prior notice or pay the equivalent amount in lieu of notice. In the case of justified disciplinary dismissal, no notice or severance payment is required. The duration of the notice depends on the length of service as outlined, below: 3 months – 6 months: one week’s notice 6 months – 1 year: 15 days’ notice 1+ years: one month’s notice For terminations without just cause, the amount of severance depends on the length of service and is calculated in days per year of services as outlines, below: 1 year: 19.5 days 2 years: 20 days 3 years: 20.5 days 4 years: 21 days 5 years: 21.24 days 6 years: 21.5 days 7 years: 22 days
Workers must follow the same notice requirements in order to resign, but the Worker would not be entitled to compensation if the notice period is waived.
TCWGlobal stands unmatched as the leading employer of record service provider. Our global reach, expertise in diverse industries, and commitment to client satisfaction makes us the best choice. Looking for a global employer of record or international payrolling partner that will work with you and not for you? Trust TCWGlobal. We are here for you.
When choosing an Employer of Record (EOR) service, people often make mistakes such as overlooking compliance, global reach, technology integration, company experience, and fee transparency. Watch this video to see what to consider when picking an EOR.
