#CostaRica 🇨🇷 #BDSLaborAlert: New amendment to decree regulating suspension of employment agreements

Labort Alert Costa Rica-1

Last Friday, June 18, 2021, Executive Decree No. 43047-MTSS was published, containing the procedure for the suspension of employment agreements with authorization from the Ministry of Labor and Social Security (MTSS), within the framework of the COVID-19 pandemic.

In general terms, this amendment goes back to the same provisions previously governing this subject, which allowed any employer to access the “abridged” procedure for applying for suspension, even if they are not from companies prohibited from operating (which was actually the last amendment reform that had recently been done).

Generally, the requirements for each application are as follows:
1. It must be based on events resulting from the emergency measures issued by the Administration for the cases regulated in paragraphs a) and b) of article 74 of the Labor Code, which are: (a) the lack of raw material to carry out operations, provided that it is not attributable to the employer, and (b) due to force majeure or fortuitous event, when it brings as a necessary, immediate and direct consequence the suspension of operations.
2. It must be notified three days after the event occurred and the MTSS inspection department has 5 days to issue the relevant resolution.
3. Legal status, if a legal person.
4. A sworn statement authenticated by a lawyer stating the grounds that support the request for suspension.

Note that due to the importance of this kind of measure, it is recommended to consult with a legal advisor about the specific requirements, the justification and the supporting documentation of the application, in order to avoid risks arising from an incorrect implementation of the suspension.

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