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Costa Rica - Compensation & Benefit Legislation

CAPITAL

San Jose

 

CLIMATE

Tropical and subtropical, Dry season (December to April); rainy season (May to November). Tends to be cooler in the highlands.

 

LANGUAGES

Spanish (official) and English (spoken around Puerto Limon).

 

LEGAL SYSTEM

Based on Spanish civil law system. Judicial review of legislative acts in the Supreme Court. Costa Rica has not accepted the compulsory ICJ jurisdiction.

 

CURRENCY

Costa Rica Colones (1 USD = 365.300 CRC as of April 15, 2002).

 

COSTA RICA - COST-OF-LIVING

ERI's Relocation Assessor is a recommended source for cost-of-living data.

 

COSTA RICA - EMBASSY/CONSULATES

U. S. Embassy at San Jose

Calle 120 Aveninda

Pavas

San Jose, Costa Rica

APO AA 34020

San Jose, Costa Rica

Telephone: (506) 220-3939

Fax: (506) 220-2305

http://usembassy.or.cr/

 

Embassy of Costa Rica at Washington D.C.

2114 S Street N.W.

Washington D.C. 20008

Telephone: (202) 234-2945

Fax: (202) 265-4795

Email: embassy@costarica-embassy.org

http://www.costarica-embassy.org

 

COSTA RICA - HOLIDAYS

 

COSTA RICA – LEAVE

Annual Leave: The Constitution sets annual vacation rights.

 

Maternity Leave: 4 months – 100% of pay (50% paid by employer – 50% paid by social security).

 

COSTA RICA - MINIMUM AGE

The Constitution and the Labor Code establish a minimum working age of 15 years. Adolescents between the ages of 15 and 18 can work for a maximum of 6 hours daily and 36 hours weekly with special permission from the autonomous National Institute for Children (PANI), while children under the age of 15 cannot work legally.

 

(Section 6.d. Acceptable Conditions of Work, Costa Rica – Report of Human Rights Practices, 2001, U.S. Department of State.)

 

COSTA RICA - MINIMUM REMUNERATION

The Constitution provides for a minimum wage. A National Wage Council, composed of three members each from government, business, and labor, sets minimum wage and salary levels for all sectors. Monthly minimum wages for the private sector were last adjusted on July 1, 2001.

 

Minimum monthly wages range from 47,982 colones (approximately $144) for domestic employees to 232,546 colones (approximately $699) for some professionals.

 

(Section 6.e. Acceptable Conditions of Work, Costa Rica – Report of Human Rights Practices, 2001, U.S. Department of State.)

 

COSTA RICA - REMUNERATION

ERI's Geographic and Salary Assessors are recommended sources for international remuneration covering 189 countries.

 

COSTA RICA - REPORT OF HUMAN RIGHTS PRACTICES (2001, DEPARTMENT OF STATE)

Section 6 Worker Rights

 

a. The Right of Association

 

The law specifies the right of workers to join unions of their choosing without prior authorization, although barriers exist in practice. About 15 percent of the work force is unionized and approximately 80 percent of all union members are public sector employees. Unions operate independently of government control.

 

Some trade union leaders contend that "solidarity" associations infringe upon the right of association. Solidarity associations are nondues paying organizations that offer membership services, including credit union programs, matching-fund savings accounts, and low-interest loans; in some instances, employees have access to both trade union membership and solidarity association services.

 

In 1995 the ILO Committee of Experts (COE) encouraged the Government to approve legislation to allow unions to administer compensation funds for dismissed workers and to repeal labor code provisions restricting the right to strike in certain nonessential public, agricultural, and forestry sectors. The International Confederation of Free Trade Unions reported that the Labor Ministry provided information about newly formed unions to employers who then encouraged formation of solidarity associations and blacklisted union members. The Labor Ministry denied the reports but acknowledged that solidarity association culture is deeply embedded. During 1999 and 2000, the Labor Ministry received six complaints charging antiunion discrimination. The Labor Ministry provided restitution to aggrieved workers in two cases through administrative mechanisms. Courts resolved the remaining 4 cases; in 3 cases involving 16 workers, they were reinstated to their jobs, and in 1 case involving 3 workers, the court dismissed the complaint.

 

In 1998 the Rerum Novarum Workers Confederation complained about government noncompliance with commitments to protect worker rights but withdrew the complaint after the Rodriguez administration asked for a reasonable period to demonstrate its commitment to worker rights. Some labor unions did not support the complaint because they believed that it interfered with the administration's national reconciliation process. In August 2000, the Rerum Novarum confederation resubmitted the complaint against the Government. In June that complaint served as the basis for an AFL-CIO petition to remove Costa Rica from the list of beneficiary countries under the U.S. General System of Preferences and the Caribbean Basin Economic Recovery Act. The Government filed its response to the petition in August; a U.S. interagency review process of that petition was under way at year's end.

 

The Constitution and Labor Code restrict the right of public sector workers to strike. However, in 1998 the Supreme Court formally ruled that public sector workers, except those in essential positions, have the right to strike. Even before this ruling, the Government had removed penalties for union leaders participating in such strikes.

 

In March 2000, the Supreme Court's Constitutional Chamber clarified the law forbidding public sector strikes. It ruled that public sector strikes may be allowed only if a judge approves them beforehand and finds that "services necessary to the well-being of the public" are not jeopardized. Public sector workers who decide to strike can no longer be penalized by a prison sentence but can face charges of breach of contract.

 

In March 2000, ICE workers, employees from public hospitals, teachers, students, taxi drivers, and public transportation workers called a general strike that lasted several days to protest the passage of legislation that would have partially opened the ICE to private participation.

 

There are no legal restrictions on the right of private sector workers to strike, but very few private sector workers belong to unions. Private sector strikes rarely occur, and there were no major private sector strikes during the year.

 

Unions may form federations and confederations and affiliate internationally.

 

b. The Right to Organize and Bargain Collectively

 

The Constitution protects the right to organize. Foreign nationals are expressly prohibited from exercising direction or authority in unions. Specific provisions of the 1993 Labor Code reforms provide protection from dismissal for union organizers and members during union formation. The employer is not obligated to follow any specific procedures to prove grounds for dismissal. The revised provisions require employers who are found guilty of unfair labor practices to reinstate workers fired for union activities. However, the ILO's Committee on Freedom of Association reported in 1999 that harassment still was used to force workers to leave unions, and that other violations of labor legislation continued to occur. In a 1998 incident, a company in the banana industry refused to negotiate with a legitimate union for 3 years. The company eventually fired the union leader and established a solidarity association. The Labor Ministry reported cases from the banking, transportation, and agricultural sectors, in which union leaders fired without cause were restored to their positions with back pay.

 

There were no new developments during the year in the ILO complaint filed by a union alleging antiunion discrimination in the banana industry, or on the complaint filed by the teachers union.

 

Trade unions claim that the 1993 reforms have not led to significant improvements because the Government has not enforced the law effectively. The Constitutional Chamber ruled that the National Inspection Directorate must comply with the 2-month time limit for investigations. The ILO has criticized this procedure for giving no guarantee or reparations for damages caused, even if the legal deadlines are respected, since the labor inspectors simply certify the wrongdoing but file no charges. Most cases take up to 2 months to resolve, but some may take longer if the judge decides that an unusual situation merits further investigation and requires witnesses. Delays in processing court rulings are common throughout the judicial branch. Since 1998 the Ministry of Labor has modernized the National Inspection Directorate, to enable it to support worker rights by increasing the authority of regional officers to investigate and process cases of alleged abuse by employers. These regional offices also establish local forums where government officials, employers, and employees can discuss labor issues. Inspectors have been provided increased opportunities for training and participation in Ministry of Labor administration.

 

On May 31, a Constitutional Court decree defined the judicial framework for collective bargaining in the public sector. On June 15, the Assembly approved a law permitting public employees to participate in collective bargaining, except in circumstances that would violate existing bylaws or when the employee occupies a managerial position in the government. Private sector unions have the legal right to engage in collective bargaining. However, collective bargaining is rare--there were fewer than 20 collective agreements in force in 2000. Collective bargaining has diminished as a result of several factors, including lengthy delays in court processing of unfair dismissal suits and solidarity associations in effect displacing trade unions. Solidarity associations are barred by law from negotiating work conditions, salaries, and benefits.

 

All labor regulations apply fully to the country's nine export processing zones (EPZ's). The Labor Ministry oversees labor regulations within the EPZ's. It reported that in September, it had 1 inspector for every 8,526 workers, compared with 1 inspector for every 9,000 workers in 2000, and 1 for every 30,000 in 1999.

 

c. Prohibition of Forced or Compulsory Labor

 

The Constitution prohibits forced or compulsory labor; however, the country is a transit and destination country for trafficked persons. Laws prohibit forced and bonded labor by children, and the Government generally enforces this prohibition effectively; however, there have been reports of girls trafficked to the country for sexual exploitation.

 

d. Status of Child Labor Practices and Minimum Age for Employment

 

The Constitution and the Labor Code provide special occupational protection for minors and pregnant and nursing women, and establish a minimum working age of 15 years. Adolescents between the ages of 15 and 18 can work for a maximum of 6 hours daily and 36 hours weekly with special permission from the PANI, while children under the age of 15 cannot work legally. The PANI, in cooperation with the Labor Ministry, generally enforces these regulations in the formal sector. Due to limited government resources for enforcement, some children work on the fringes of the formal economy in violation of these limits. Youths under the age of 18 may not work in the banana industry. According to PANI estimates for 2000, 19 percent of children between the ages of 5 and 17 were employed in domestic tasks, while 15 percent worked outside the home. According to the National Institute of Census and Statistics, in 1998 147,000 (15.4 percent) of the country's 954,000 children were employed. Of this working population, 66,762 (45 percent) were under the age of 18. Of the employed children, 39 percent worked 57 hours per week, which is 21 hours above the 36 hours a week permitted by law. The survey showed that children between the ages of 5 and 11 are paid only 11.6 percent of the minimum wage, those between the ages of 12 and 14 are paid 21 percent of the minimum wage, and the group between the ages of 15 and 17 is paid 56 percent of the minimum wage.

 

With help from the ILO, the Labor Ministry is working to phase out child labor and has asked employers of children to notify the Ministry of such employment. The National Directive Committee for the Progressive Eradication of Child Labor and Protection of Adolescent Laborers includes representatives from the PANI, the Ministry of Labor, the Ministry of Justice, the Ministry of Public Security, the Ombudsman's Office, UNICEF, the ILO, and area universities. In 1999 the Committee conducted an aggressive public awareness campaign as part of its national plan, which continued at a lower level during the year. The campaign addressed child labor and explained existing legislation to audiences of different age groups. Committee members were also involved in a consultative process to encourage ratification of ILO Convention 182 on elimination of the worst forms of child labor, which the Legislative Assembly approved on July 30. The Ministry of Labor maintains an Office for the Eradication of Child Labor, which cooperates with projects sponsored by the ILO, U.N. Development Program, and other entities. Nonetheless, child labor remains an integral part of the informal economy, particularly in small-scale agriculture and family-run microenterprises selling various items, which employ a significant proportion of the labor force. Child prostitution is a serious problem. The law prohibits forced and bonded labor by children, and the Government enforces this prohibition effectively.

 

e. Acceptable Conditions of Work

 

The Constitution provides for a minimum wage. A National Wage Council, composed of three members each from government, business, and labor, sets minimum wage and salary levels for all sectors. Monthly minimum wages for the private sector, last adjusted on July 1, range from $144 (47,982 colones) for domestic employees to $699 (232,546 colones) for some professionals. Public sector negotiations, based on private sector minimum wages, normally follow the settlement of private sector negotiations. The Ministry of Labor effectively enforces minimum wages in the San Jose area, but does so less effectively in rural areas. Especially at the lower end of the wage scale, the minimum wage is not sufficient to provide a worker and family with a decent standard of living.

 

The Constitution sets workday hours, overtime remuneration, days of rest, and annual vacation rights. Although often circumvented in practice, it also requires compensation for discharge without due cause. Generally, workers may work a maximum of 8 hours during the day and 6 at night, up to weekly totals of 48 and 36 hours, respectively. Nonagricultural workers receive an overtime premium of 50 percent of regular wages for work in excess of the daily work shift. However, agricultural workers do not receive overtime pay if they voluntarily work beyond their normal hours. Little evidence exists that employers coerce employees to perform such overtime.

 

A 1967 law on health and safety in the workplace requires industrial, agricultural, and commercial firms with 10 or more workers to establish a joint management-labor committee on workplace conditions and allows the Government to inspect workplaces and to fine employers for violations. Most firms subject to the law establish such committees but either do not use the committees or do not turn them into effective instruments for improving workplace conditions. Due partly to budgetary constraints, the Labor Ministry has not fielded enough labor inspectors to ensure consistent maintenance of minimum conditions of safety and sanitation, especially outside San Jose. However, Labor Ministry programs to hire additional inspectors and enhance inspector-training programs have resulted in some progress. While workers have the right to leave work if conditions become dangerous, workers who do so may jeopardize their jobs unless they file written complaints with the Ministry of Labor.

 

f. Trafficking in Persons

 

The law prohibits trafficking in women for the purpose of prostitution, and in 1999 a statute went into effect that strengthens this prohibition; however, Costa Rica is a transit and destination country for trafficked persons. Isolated cases of trafficking have involved persons from Africa, Asia, Bolivia, China, Colombia, Cuba, the Dominican Republic, and the Middle East. There also have been reports of girls from the Philippines being trafficked to the country for the purpose of sexual exploitation.

 

The Criminal Code prohibits trafficking in women and minors for the purpose of prostitution, but it does not address all severe forms of trafficking. There is a government Inter-Ministerial Group on Trafficking to address the problem in the country. Each participating ministry reportedly has incorporated preventive trafficking measures into its ministerial agenda. Child prostitution is a problem, and the Government supports prevention programs to combat sexual exploitation of minors and trafficking. There are limited formal mechanisms specifically designed to aid trafficked victims; however, the Government does offer indirect assistance to child victims of trafficking. Victims are not granted temporary or permanent residence status and often are deported immediately to their country of origin.

 

COSTA RICA - SOCIAL SECURITY

Social Security Office of International Programs:

 

http://www.ssa.gov/SSA_Home.html

 

COSTA RICA - STANDARD WORKWEEK

The Constitution sets workday hours, overtime remuneration, days of rest, and annual vacation rights. Generally, workers may work a maximum of 8 hours during the day and 6 at night, up to weekly totals of 48 and 36 hours, respectively. Nonagricultural workers receive an overtime premium of 50 percent of regular wages for work in excess of the daily work shift. However, agricultural workers do not receive overtime pay if they voluntarily work beyond their normal hours.

 

(Section 6.e. Acceptable Conditions of Work, Costa Rica – Report of Human Rights Practices, 2001, U.S. Department of State.)