#CostaRica 🇨🇷 #BDS_Informs: Labor Considerations for the August 15 Public Holiday

Next Saturday, August 15, Costa Rica will commemorate Mother’s Day.

This date was officially established by Law No. 79, which designated August 15 as an annual holiday in honor of Costa Rican mothers. The celebration originates from the Catholic Feast of the Assumption of the Virgin Mary, which is why Costa Rica observes Mother’s Day on a different date than many other countries.

Under Costa Rican labor law, August 15 is a mandatory paid public holiday, pursuant to Article 148 of the Labor Code. As has been the case with other public holidays this year, its observance will not be moved to another date. Therefore, the holiday must be observed on its official date, Saturday, August 15.

How Should Employees Be Paid for This Holiday?
The applicable payment method will determine how employees must be compensated for the holiday:

• Hourly-paid employees in non-commercial activities: Employers must pay employees for the days actually worked and, in addition, pay one ordinary day’s wages for each mandatory paid public holiday. If the employee works on the holiday, the day must be paid double.
• Monthly, biweekly, or weekly-paid employees in commercial activities: Their salary already includes payment for public holidays. If the employee works on the holiday, an additional ordinary day’s pay must be added, resulting in double pay for that day.
• In both cases, if an employee works overtime on the holiday, those hours must be paid with a 50% surcharge over the double hourly rate, effectively double time and a half.

May I Require Employees to Work on That Day?
Although Article 149 of the Labor Code prohibits employers from requiring employees to work on public holidays, Articles 150 and 151 establish exceptions for operations that, by nature, require continuous activity. In such cases, employers may require employees to work on the holiday, provided they are given reasonable advance notice.

Can the Holiday Be Moved to Another Date?
Public holidays are non-waivable employee rights. Therefore, any agreement intended to move the observance of the holiday to a different date entails legal risk and may be deemed null and void.

We will soon provide further information regarding the specific rules applicable to the next public holiday, which will take place on Monday, August 31.