Costa Rica Employment Guide

Costa Rica Employment Guide

Costa Rica, located in Central America, has a population of about 5 million. Its economy is largely based on tourism, agriculture, electronics, and services. Employment in Costa Rica is regulated by the Labor Code, which governs working hours, minimum wages, leave entitlements, social security contributions, and termination procedures. Employers must comply with mandatory benefits, including Christmas bonuses, annual leave, and severance pay. The labor market supports both local and expatriate employees, emphasizing formal employment contracts and social security compliance.

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Currency

Costa Rican Colón (CRC)

Capital

San José

Official language

Spanish

Salary Cycle

Monthly

Our Employment Guide in Costa Rica

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Essential Elements of a Spanish Employment Contract

When drafting an employment contract in Spain, it is mandatory to use the Spanish language, though bilingual versions are acceptable. The agreement must be formalized in writing and signed by both the employer and the employee to ensure legal validity.

A comprehensive contract should clearly outline the following key components:

  • Full names and identification details of both parties
  • Specified working hours and schedule
  • Detailed compensation and payment structure
  • Job responsibilities and role expectations
  • Terms and conditions for contract termination

For instance, SailGlobal assists international companies by ensuring these elements are accurately included, helping to avoid common pitfalls in cross-border hiring.

Understanding the Probationary Period in Spain

While not a legal requirement, implementing a probationary period is a common practice for assessing employee suitability. The duration must adhere to Spanish labor laws: a minimum of 30 days and a maximum of 90 days (equivalent to 3 months).

For example, a tech startup using SailGlobal's HR services successfully navigated a 60-day probation for a remote developer, aligning with local regulations while evaluating performance effectively.

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