#CostaRica 🇨🇷 #LaborAlertBDS: Extension of the Effective Period Authorizing the Reduction of Workshifts in Light of the Declaration of National Emergency

Yesterday, Bill No. 22.265 “Extension of the effective period authorizing the reduction of workshifts in light of the Declaration of National Emergency” was approved in second discussion. This new law adds a transitory section to Act 9832, which allowed employers to reduce workshifts and the corresponding salaries in order to maintain employment agreements to the extent they provide evidence to the Ministry of Labor of economic harm. This possibility of reducing workshifts allows extending said reduction for a single three-month period in addition to the two-extension limit permitted by Article 5 of Act 9832.

It should be noted that this new transitory section sets forth several requirements in order to be able to implement the extension:

1. Employers should not have abused of any mechanisms set forth by law, nor incurred in any violations of labor laws.
2. Employers should have maintained the jobs of any workers subject to reduced workshifts.
3. Evidence showing that any conditions caused by the pandemics are still affecting the company. 

In addition, and in case the extension of the reduced workshift has been authorized by the Ministry of Labor, the following is prohibited:

1. Implement fractioned workshifts for any workers subject to reduced shifts.
2. In cases of reduced workshift applied to a percentage of workers, employers may not pay workers who remain in the company for overtime but rather reinstate the specific workers with reduced workshift, as required.

This law will enter into force from its publication in the Official Gazette.