Costa Rica Labor Regulations: A Comprehensive Guide for International Employers

Understanding Working Hours and Overtime Regulations

Standard Working Hours Framework

Costa Rica's Labor Code establishes clear parameters for working hours, with the standard workweek capped at 48 hours. Daily shifts typically range between 8-10 hours across a six-day workweek. Special protections exist for young workers aged 15-18, who are limited to 6-hour daily shifts (36 hours weekly). Importantly, employment of individuals under 15 is strictly prohibited under Costa Rican law.

Night Shift and Mixed Shift Arrangements

Night work, defined as employment occurring between 7:00 PM and 5:00 AM, carries specific restrictions. Employees on night shifts cannot exceed 6 hours daily or 36 hours weekly. Mixed shifts combining daytime and nighttime hours have a 7-hour daily limit (42 hours weekly), except in non-hazardous environments where 8-hour days (48-hour weeks) are permitted. When night work exceeds 3.5 hours within a mixed shift, it's classified as a night shift subject to corresponding regulations. Youth workers cannot work mixed shifts beyond 10:00 PM, with complete prohibition between 7:00 PM and 7:00 AM.

Overtime Compensation Structure

Overtime compensation follows a structured approach: 150% of regular pay for standard overtime, and 300% for work on Sundays or official holidays. Night shift workers receive pay equivalent to 8 daytime hours for 6 hours worked. Weekly-paid employees receive 300% compensation for mandatory holidays and 150% for non-mandatory holidays. Daily work (including overtime) cannot exceed 12 hours except in extraordinary circumstances. Management positions and certain specialized roles may be exempt from standard hour limitations.

Employment Contract Essentials

Employment contracts in Costa Rica establish the legal relationship between employer and employee, outlining rights, responsibilities, and working conditions. Three fundamental elements define an employment relationship: personal service provision (work must be performed directly by the employee), compensation, and subordination (employer's right to direct work activities).

Contract Types and Duration

Costa Rican law recognizes two primary contract types: fixed-term contracts (including specific project contracts) and indefinite-term agreements. Fixed-term contracts cannot exceed 12 months total duration (including renewals), except for specialized technical roles which may extend to five years. Automatic conversion to indefinite contracts occurs after 12 months of continuous service, granting full termination benefits.

Contract Formalization Requirements

Written contracts are mandatory except for agricultural work or temporary assignments under 90 days. Contracts require triplicate copies: one each for employer and employee, plus submission to the Ministry of Labor within 15 days of execution. Essential contract elements include:

Complete identification details for both parties
Contract duration and work schedule specifications
Compensation structure and payment terms
Work location and specific job responsibilities
Signatures and execution details

Probation Period Considerations

While not explicitly codified in statute, Costa Rican judicial precedent establishes a three-month probation period as standard practice. During this period, either party may terminate employment without notice or penalty. Employers should note that this period cannot be extended or shortened, and while contract inclusion isn't mandatory, clear communication about probation terms is recommended.

Practical Compliance Considerations

International companies expanding into Costa Rica often benefit from specialized guidance to navigate local labor regulations effectively. SailGlobal provides comprehensive compliance consulting services, helping businesses establish legally sound employment practices while avoiding common pitfalls that could disrupt operations.

Recent cases demonstrate how proper understanding of mixed shift regulations prevented significant penalties for manufacturing companies, while appropriate contract structuring helped technology firms maintain flexibility within legal boundaries. These examples underscore the importance of proactive compliance planning when entering the Costa Rican market.

Costa Rica Labor Law Guide: Working Hours, Contracts & Compliance