#CostaRica 🇨🇷 #BDS_LaborAlert: Constitutional Chamber Redefines Rules on Collective Bargaining and Longevity Bonuses in the Public Sector
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#CostaRica 🇨🇷 #BDS_LaborAlert: Constitutional Chamber Redefines Rules on Collective Bargaining and Longevity Bonuses in the Public Sector

The Constitutional Chamber of the Supreme Court of Justice recently issued Judgment No. 8201-2025, in which it resolved several legal actions on grounds of unconstitutionality filed against several provisions of the Law on the Strengthening of Public Finances (LFFP in Spanish), which reformed, among other provisions, the Public Administration Salaries Act (LSAP also in Spanish).

This ruling introduces significant changes for the public sector in matters of remuneration and collective bargaining.

The main issues covered by the judgment include the following:

  • Equal pay: The LSAP provisions that established differences in the remuneration of public servants under the statutory prohibition regime were declared unconstitutional, as they were found to contravene the principle of equality.
  • Collective agreements: A transitory provision of the LFFP requiring the heads of public institutions to terminate collective agreements upon expiration was annulled.
  • Longevity bonuses (anualidades): The legal action on grounds of unconstitutionality against Article 12 of the LSAP, relating to longevity bonuses, was partially upheld. The Constitutional Chamber held that the method by which such bonuses were granted resulted in discrimination, since it did not allow the accumulation of years of service across different State institutions; moreover, the Court found no valid basis for maintaining the timing of payment as previously established. Although this provision had already been amended, the ruling clarified that the version reviewed by the Constitutional Chamber was not consistent with constitutional rights.
  • Remuneration and severance pay: Other provisions concerning severance, longevity bonuses, and the creation and payment of incentives were deemed constitutional, insofar as they are understood not to impair the right to collective bargaining.

It is essential to carefully review Constitutional Chamber Ruling No. 8201-2025, always under the premise that each public administration institution must consider, in a comprehensive manner, the legal framework applicable to it.

 

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