#CostaRica 🇨🇷 #BDS_LaborAlert: Independent Workers Law Published: New Rules and Statute of Limitations for Obligations
On Monday, May 8th, Act No. 10363, known as the "Independent Workers Law," was published in Item 80...
The recent submission of the Labor Code reform bill by the Executive Branch marks a significant moment in the evolution of the labor landscape in our country. In a rapidly changing environment where remote work and the digital economy have become entrenched, this reform presents an opportunity to modernize our labor laws, promoting a more equitable and flexible framework.
Labor Minister Luis de Camps highlighted that the goal of these amendments is to "expand rights and improve relations between workers and employers." In a world where labor dynamics are constantly evolving, it is essential that our regulations adapt accordingly.
The most notable changes proposed in the bill include the following:
- Inclusion of Telework: The concept of telework is introduced in Article 276.1, referring to it as a modality that allows workers to perform their duties from home or any other location using information and communication technologies. The specific conditions of telework, including the modality (full-time or part-time), the location of service provision, the duration of the contract, and the corresponding remuneration, must be agreed upon by the parties.
- Paternity Leave: Paternity leave is extended, granting fathers more time to spend with their newborn children, and improving working conditions for domestic employees.
- Flexible Working Hours: Employers will be allowed to distribute the workday according to their needs, while also ensuring adequate rest periods and increasing overall company productivity.
- New Vacation Time Scheme: A more generous vacation time scheme is proposed:
- 14 working days after 1 year of service.
- 15 working days after 3 years of service.
- Employer-Focused Provisions: Options will be offered for the payment of labor rights, allowing benefits to be deposited directly into the worker's payroll account, thereby reducing the risk of penalty fines for non-payment of these rights.
- Reduction of Labor Litigation: The reform aims to reduce the number of labor disputes by creating a clearer and more efficient framework for dispute resolution. It promotes conciliation through a specialized process before a conciliatory judge, which will allow conflicts to be resolved without resorting to prolonged legal proceedings.
It should be noted that this reform package stems from a tripartite discussion between the government, employers, and labor unions. This collaborative approach is crucial to reaching a consensus that not only benefits one sector but also promotes sustainable and competitive labor development in the country.
With the bill now submitted to the Senate and a special commission established for its review, a space for debate and reflection is now open. In a global context where labor flexibility is increasingly valued, it is imperative that this reform is discussed seriously and thoroughly. Only then can we ensure that the proposed changes truly address the needs of all stakeholders involved and lead to a more equitable, flexible, and efficient labor environment.
Javier Suárez
Partner at BDS Asesores
