Companies must learn Costa Rica’s employment laws and implement a strategic hiring plan when starting business in the country. Understanding the local workplace culture and business etiquette is key as well.
Recruiting in Costa Rica
In addition to learning about the culture in Costa Rica, companies should take some time to focus on the logistics of the recruitment process. They should look into the best recruitment channels as well as the laws surrounding hiring and employment in Costa Rica.
Companies should begin by making sure they’re posting listings for the company’s open positions in the most impactful places so that they can connect with the best candidates for each job.
In Costa Rica, online job boards and social networks like LinkedIn are growing in popularity as recruitment channels. Traditional networking and personal recommendations are also common. If companies are just entering the market in this country, it might be helpful to partner with a global EOR that already has an established presence and is backed by in-county experts who know the local market.
Laws against discrimination in Costa Rica
As in many other countries, Costa Rica has a set of laws in place to prevent discrimination in the workplace. Under Costa Rica’s constitution and employment laws, employers cannot make hiring or other employment decisions based on any protected characteristics, which include:
- Race.
- Ethnicity.
- Religion.
- Gender.
- Sexual orientation.
- Marital status
- Disability.
- Age.
- National origin.
- Political opinion.
- Union membership.
- Health.
- HIV-positive status.
To make sure they’re staying compliant with these laws throughout the process of hiring in Costa Rica, companies must carefully consider the language used in job postings and conversations with potential hires.
How to hire employees in Costa Rica
Costa Rica has laws specifying the standard working hours, overtime, paid holidays, and more. Companies must understand these laws and ensure they are staying up to date with any changes as these laws evolve over time.
When negotiating terms of an employment contract with an employee in Costa Rica, it may be useful to keep the following standards in mind.
Costa Rica employment laws
Employers are legally required to hire employees under a strong employment contract in the local language. The contract should include everything from compensation to termination requirements, including compensation amounts in the local currency, colones (CRC), instead of another currency. When reviewing an employment contract, the employer should make sure the employee being hired agrees with the terms.
Costa Rica celebrates 12 public holidays for which employees are given paid days off. The Costa Rica Labor Code provides vacation benefits that generally entitle employees to 1 day of vacation for every month of employment, and 2 weeks of vacation after 50 weeks of work.
Companies should also understand local benefits requirements to attract and retain top talent. Employees in Costa Rica are entitled to a 13-month salary (also referred to as Christmas bonus) called aguinaldo, which is based on 1 month of an employee’s salary and must be paid within the first 20 days of December each year. This bonus is additional to the annual salary.
Clearly stating these terms and benefits offered within the contract is essential to ensure transparency and to maintain a strong employer-employee relationship.
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