#CostaRica 🇨🇷 #BDS_LaborAlert: Ruling from the Constitutional Chamber Affects Provisions of the Law on Strengthening Public Finances

Recently, judgment 2025-008201 was announced by the Constitutional Chamber of the Supreme Court of Justice of our country. This judgment partially upholds several actions on grounds of unconstitutionality related to the Law on Strengthening Public Finances, Act No. 9635, and the Public Administration Salaries Act No. 2166.

Although the judgment is still being drafted, the disclosed portion of the operative part highlights the following aspects:

• It declares unconstitutional the second paragraph of Article 32 in its final wording (legal prohibition regime), Article 33 in its final wording (legal prohibition regime), and the first paragraph of Transitory Provision XXXVI of the Law on Strengthening Public Finances (duty to report collective bargaining agreements).
  
  
• It partially upholds the action concerning Article 12 of the Public Administration Salaries Act (annual incentives) as provided in the version set forth by subparagraph 49, item (a), of the Public Employment Framework Act No. 10159 dated March 8, 2022, which was subsequently amended by lawmakers upon the law's entry into force.
  
  
• Articles 39 (severance), 50 (annual incentive with nominal calculation), 54 (conversion of incentives into fixed nominal amounts), and 55 of the Public Administration Salaries Act (the creation of incentives and salary compensations as a matter reserved to law), as well as Transitory Provisions XXVII (severance) and XXXI of the Law on Strengthening Public Finances (annual incentive with nominal calculation), are deemed constitutional provided that the restriction on collective bargaining does not apply to public sector employees who may validly enter into collective agreements.

The judgment has declaratory and retroactive effects to the date on which the annulled provisions took effect, without prejudice to any vested rights acquired in good faith.

If you have any questions regarding this important judgment, we can provide you with legal advice. Please contact us.

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