#CostaRica 🇨🇷 #BDS_LaborAlert: Reform to Health Insurance Regulations Introduces Special Leaves of Absence and Expanded Coverage for Workers
On Friday, November 1, 2024, the reform to the Health Insurance Regulations, approved by the Board...
The retirement of a worker in our country involves relevant legal considerations. Firstly, it should be noted that there is no prohibition for a retired person to continue working; in such cases, the company must continue deducting the employee-employer contributions from their salary. Previously, it was required for the worker to prove the cessation of work in order to opt for retirement, but this requirement was declared unconstitutional in 2007.
Despite this decision, the Labor Code establishes that retirement is a fair cause for termination of employment. However, a problem arises regarding the timeframes for dismissal. According to Article 13, the employer has a two-month period to dismiss the worker upon occurrence of the events that resulted in termination. Labor courts have interpreted that this period begins to run from the moment the worker is officially notified of their retirement.
This situation creates complications for companies, as they often remain unaware of when the worker is notified about his/her retirement. Furthermore, there is an additional risk when dismissing a retired worker who may be protected by a special protection regime due to chronic or degenerative illnesses. In such cases, prior judicial authorization is required to carry out a justified dismissal.
Undoubtedly, the termination of the employment relationship due to retirement poses serious legal challenges. Companies must proceed with caution when addressing this situation and consider the available options, as well as seek the necessary legal advice to mitigate potential associated risks.
