Littler Global Guide - Costa Rica - Q1 2022

Browse through brief employment and labor law updates from around the globe. Contact a Littler attorney for more information or view our global locations.

Download full Q1 2022 Global Guide Quarterly

New Law Promotes Employment Opportunities for People 45 and Older

New Legislation Enacted

Author: Marco Arias, Partner – BDS, Member of Littler Global

Law No. 10079, which reform the Social Development and Family Allowances Law (FODESAF) and was published on January 25, 2022, creates incentives for employers to hire individuals 45 and older. Employers whose 10% of the total payroll consist of new hires and personnel in that demographic, will receive a 1% deduction in FODESAF contributions, as well as a deduction of 5% in the corporate income tax. The deductions increase to 2% and 7% respectively if the new hires account for 20% of the complete payroll.

Public Employment Framework Law, Law No. 10159, is Enacted

New Legislation Enacted

Author: Marco Arias, Partner – BDS, Member of Littler Global

The Public Employment Framework Law was approved on March 7, 2022 and aims to regulate labor relations in the Public Administration sector (excluding non-State public entities, the Fire Department, and the institutions or public companies in competition). Among other things, this law limits places a cap on annual increases, limits the scope of collective bargain, and creates a “global salary” for public employees that would eliminate many of the individualized incentives and fringe benefits that tend to increase the labor cost over the years.

Third Dose of COVID-19 Vaccine Becomes Mandatory for Public Officials

New Regulation or Official Guidance

Author: Marco Arias, Partner – BDS, Member of Littler Global

By decision of the National Commission for Vaccination and Epidemiology, taken in extraordinary session No. V-2022 on February 10, 2022, the compulsory nature of the vaccine against the COVID-19 disease is extended to the third dose for public officials. Employers in the private sector can choose to make vaccination mandatory, which includes the possibility to require a booster shot as well.

Information contained in this publication is intended for informational purposes only and does not constitute legal advice or opinion, nor is it a substitute for the professional judgment of an attorney.