Littler Global Guide - Costa Rica - Q3 2020

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

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Dates to Observe Holidays

New Legislation Enacted

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

Law N°9875 was enacted to observe holidays on the following Monday depending on whether they fall on a given weekday. The law seeks to promote national tourism among Costa Ricans to alleviate the economic damage due to COVID-19, especially to the tourism industry. Under the law, which became effective on July 16, 2020, the July 25 national holiday (which fell on a Saturday) was observed on Monday, July 27. Under the law, five of 11 Costa Rican holidays will be observed in that way, until the end of 2024.

CCSS Expands Health Insurance Coverage to Furloughed Workers

Important Action by Regulatory Agency

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

On September 30, the Board of Directors of the Costa Rican Social Security Fund (Caja Costarricense de Seguro Social, CCSS) approved a temporary reform of article 58 of the Health Insurance Regulation, to extend CCSS (social security) coverage to furloughed employees. Due to the negative financial impact to companies brought about by the pandemic, employers have resorted to suspend labor contracts (furloughs), after seeking authorization from the Ministry of Labor. Without this extension, healthcare coverage for employees furloughed in March would be expiring now. With the extension, these employees will have CCSS coverage through December 2020.

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.