#CostaRica 🇨🇷 #BDS_Informs: For the First Time, the August 31 Public Holiday Will Be Observed on a Weekday: Key Labor Implications

Next Monday, August 31, Costa Rica will commemorate “Black People and Afro-Costa Rican Culture Day” on a weekday for the first time. Previously, temporary legal provisions shifted the observance to the following Sunday, or the date itself fell on a weekend.

This date was added to the Labor Code as a public holiday under Act No. 10050 to recognize the heritage, legacy, and fundamental role of the Afro-Costa Rican population in shaping the country's national identity.

This is one of the few public holidays classified under the Labor Code as a non-mandatory paid holiday. Consequently, pay rules depend on the worker’s type of employment agreement and compensation structure.

How Should Employees Be Paid for This Public Holiday Under the Labor Code?

Pursuant to Article 148, non-mandatory paid holidays are subject to important differences depending on how employees are paid:

• Monthly or Biweekly Paid Employees: Salary already covers every calendar day. Thus, these employees are entitled to take the day off with full pay. If required to work, they must receive double pay for the day (or for the actual hours worked). Overtime on this day must be paid at triple the regular rate.
• Weekly, Hourly, or Daily Paid Employees: Because this is a non-mandatory paid holiday, employees who take the day off do not receive pay for it. Those who work must be paid their regular rate, with overtime compensated at time and a half.

Can Employers Require Work on This Holiday?

Yes. Although Article 149 of the Labor Code generally prohibits employers from requiring employees to work on public holidays, Articles 150 and 151 outline exceptions for specific businesses or operations. In these cases, employers may require employees to work, provided they are given reasonable advance notice.

Next September, Costa Rica will celebrate Independence Day. We will share guidance on the applicable labor law provisions concerning such holiday soon.