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Costa Rica

How to Hire Workers in Costa Rica | Employer of Record (EOR) in Costa Rica

Entering the Costa Rican market? Our EOR services make it easy to establish your business in Costa Rica. We handle all aspects of local employment, including payroll, benefits, and compliance with Costa Rican labor laws. With our expertise in the Costa Rican market, you can confidently expand your business, knowing that you have a trusted partner managing your international employment requirements.

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Costa Rica, known for its biodiversity, stable economy, and welcoming culture, offers great opportunities for businesses looking to expand internationally. TCWGlobal is your trusted partner in navigating the complexities of hiring in Costa Rica.

With a population of over 5 million people, Costa Rica boasts a skilled and educated workforce. From the bustling streets of San Jose to the pristine beaches of the Pacific and Caribbean coasts, Costa Rica offers a unique blend of natural beauty and cultural richness.

When it comes to expanding your business into Costa Rica, TCWGlobal understands the importance of compliance and local regulations. Our team of experts ensures that your workforce is fully compliant, allowing you to focus on growing your business.

In addition to compliance, TCWGlobal also offers personalized services tailored to your specific needs. Whether you need assistance with payrolling management, benefits administration, or any other aspect of HR, our team is here to help.

By partnering with TCWGlobal, you can rest assured that your expansion into Costa Rica will be seamless and successful. Our comprehensive services, combined with our local expertise, make us the ideal partner for businesses looking to expand into this dynamic market.
Worker Classifications

There are no official subcategories of workers in Costa Rica.

Fixed-Term Contracts

Fixed Term Contracts are permitted in Costa Rica, but only allowed for a maximum length of 3 months. If a worker continues to work beyond the expiration of the fixed-term contract will automatically characterize it as an indefinite contract.

Probationary Periods

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.

Holidays

Workers recognize 9 paid public holidays in addition to 2 unpaid public holidays. Workers are entitled to double-pay for regular hours worked and triple-pay for overtime hours worked on those days. Employers are required to grant up to four unpaid holidays per year for other religious holidays.

Vacation

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). Employees generally must be permitted to take the entire vacation at one time. Accrued but unused vacation is due at termination.

Sick Leave

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.

Working Hours

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. Limited roles can be extended further, but no more than 12 hours per day and 72 hours per week. Overtime hours must be compensated at least 150%.

Overtime

Overtime hours must be compensated at least 150%.

Mandatory Bonuses

Workers are entitled to a 13-month salary equal to one month’s salary to be paid within the first 20 days of December.

Termination

Workers may be dismissed for any reason, but severance and notice or payment in lieu of notice is generally required after three months of service unless there are grounds for disciplinary dismissal. 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 The amount of severance pay in days depends on the length of service 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

Resignation

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.    

How an EOR Can Help You Win Fast

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.

Common Pitfalls in Choosing an EOR

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.