#CostaRica 🇨🇷 #BDS_Artículo: Costa Rica’s Opportunity to Lead on AI in the Workplace
Costa Rica has a historic opportunity to become a regional benchmark for the ethical and modern...
The presence of foreign talent in Costa Rican companies continues to grow. Sectors such as technology, tourism, manufacturing, and corporate services increasingly rely on foreign professionals to meet specific needs. However, incorporating foreign nationals into the domestic workforce requires strict compliance with both immigration and labor regulations, by both the worker and the employer. Failure to comply with these obligations may result in significant legal and financial consequences.
The General Immigration and Foreign Nationals Act is clear: no foreign national may engage in paid work in Costa Rica without holding a migration status that expressly authorizes employment. Such authorization may derive from, among others: temporary residence based on an employment relationship; temporary residence based on marriage to a Costa Rican citizen; permanent residence; or authorizations granted to asylum applicants. It is important to emphasize that simply having a pending immigration application—including the filing of documents or the scheduling of an appointment—does not authorize an individual to work, with the sole exception of applications for temporary residence for employees submitted through the special window available to companies registered with the immigration authority.
Once the worker holds the appropriate migration status, the company assumes several obligations. Among the most important is the registration of the employee with the Costa Rican Social Security Fund (CCSS) as of the effective start date of employment. Enrollment with the CCSS is an essential requirement in any formal employment relationship.
With respect to occupational risks, the employer must also maintain a workers’ compensation insurance policy covering all employees. This obligation applies equally to Costa Rican nationals and foreign workers and ensures protection in the event of workplace accidents. The absence of such coverage not only exposes the employee but may also result in significant financial liability for the company.
Documentary verification is another key aspect. Companies must ensure that the foreign national maintains valid migration status at all times and must retain all documentation supporting the worker’s employment and immigration condition. It is also advisable to implement internal controls to track expiration dates and renewals, in order to prevent the worker from inadvertently falling into an irregular status.
Hiring a foreign national without proper work authorization entails serious risks. Immigration law establishes fines ranging from two to twelve base salaries for employers who hire individuals without authorization. Additionally, the General Immigration Authority may initiate administrative proceedings, order inspections, suspend the foreign national’s work activities, and even order deportation.
Hiring foreign workers is fully permissible within Costa Rica’s legal framework; however, it requires diligence. Companies must verify migration status before allowing work to commence and must continuously monitor permits and expiration dates. Proper management protects both the employee and the employer and ensures compliance with national regulations.
Johanna Gómez Frittella
Attorney-at-law, BDS Asesores
