Employment
Labour Code protection with aguinaldo and severance
The 1943 Labour Code, substantially reformed in 2017, governs employment. Dismissal without just cause requires notice and severance (cesantía), and the 2017 reform created a fast-track procedure for discriminatory dismissal and recognised the right to strike with clearer limits in essential services.
Key rules
- Aguinaldo equal to one month's average pay is due in the first 20 days of December.
- Cesantía accrues with service, from 19.5 days after one year up to a 22-day-per-year maximum at eight years.
- The standard week is 48 hours day-shift or 36 hours night-shift; overtime is paid at time and a half.
- Two weeks' paid holiday accrue for each 50 weeks of continuous work.
- Minimum wages are set annually by occupational category by the Consejo Nacional de Salarios.
Governing law
- Código de Trabajo (Ley 2 of 1943)Reformed by Ley 9343 (2017).
- Ley de Protección al Trabajador (Ley 7983)Mandatory pension and cesantía funds.
In practice
Employers must register every worker with the CCSS from day one; unregistered work exposes the employer to back contributions and fines. Claims are heard by specialised labour courts, and conciliation is offered first.