--- title: "#CostaRica 🇨🇷 #BDS_LaborAlert: Specific Provisions Established for Public-Sector Terminations Due to Mandatory Workforce Reductions" description: Specific Provisions image: https://publicaciones.bdsasesores.com/hubfs/quit-job-business-man-sending-resignation-letter-packing-stuff-resign-depress-carrying-business-cardboard-box-office-change-job-fired-from-company.jpg --- [![BDS blanco ingles](https://publicaciones.bdsasesores.com/hs-fs/hubfs/BDS%20blanco%20ingles.png?width=100&height=50&name=BDS%20blanco%20ingles.png "BDS blanco ingles")](https://www.bdsasesores.com) - [Team](https://www.bdsasesores.com/en/team/) - [Services](https://www.bdsasesores.com/en/services/) - Blog - [Labor Law](https://publicaciones.bdsasesores.com/en-us/blog) - [Corporate Law](https://publicaciones.bdsasesores.com/apriori-blog?hsLang=en-us) - [Store](https://www.bdsasesores.com/en/tienda/) - [Contact](https://www.bdsasesores.com/en/contact/) - English - [English](https://publicaciones.bdsasesores.com/blog?hsLang=en-us) - [Español](https://publicaciones.bdsasesores.com/blog?hsLang=es-cr) ![](https://publicaciones.bdsasesores.com/hs-fs/hubfs/raw_assets/public/Theme-Delight%20BDS%20Asesores/images/logo-BDS-blanco-jul25.png?width=200&name=logo-BDS-blanco-jul25.png) ##### Oct 2, 2026, 2:00:00 PM ##### 2 min. read #CostaRica 🇨🇷 #BDS\_LaborAlert: Specific Provisions Established for Public-Sector Terminations Due to Mandatory Workforce Reductions 3:48 # #CostaRica 🇨🇷 #BDS\_LaborAlert: Specific Provisions Established for Public-Sector Terminations Due to Mandatory Workforce Reductions The Ministry of National Planning and Economic Policy (MIDEPLAN) and the General Civil Service Office issued **Communication MIDEPLAN-DM-CIRC-0016-2026**, addressed to public administration bodies and entities falling within the scope of **Article 2 of the Framework Law on Public Employment, Law No. 10159**. The Communication establishes general provisions for the application of **Article 20(e) of the Law**, concerning terminations due to mandatory workforce reductions. Under the applicable legal framework, **terminations stemming from mandatory workforce reductions are exceptional** and may only be pursued under one of the grounds set forth in Article 20(e): - a mandatory reduction in services or activities due to **lack of funds**; or - a mandatory reduction in services to achieve a more efficient and cost-effective reorganization, provided that it affects at least **50% of the staff within the respective public sector unit**. In either case, the reduction requires rigorous technical justification and the payment of statutory employment benefits and severance pay. The Communication clarifies that **a reorganization, restructuring, or institutional transformation does not, on its own, justify terminations due to workforce reductions**. To support such a measure, the institution must assemble an **administrative file** containing specific studies and reports documenting the applicable grounds, supporting facts, and the impact on the continuity, efficiency, and quality of public services. The institution must also provide documented and reasoned evidence showing whether **less burdensome alternatives** are available—such as reassignment or transfer, occupational redeployment or training, and redistribution of duties or workloads. These alternatives must be considered before resorting to termination. Once preliminary requirements are met, the process must adhere to the procedures, competencies, and safeguards set out in the governing legal framework. Public servants’ rights must be upheld throughout, including **proper notification, right of appeal**, protection regimes, special safeguards, and any other relevant legal circumstances. The measure must be adopted through a **reasoned decision** specifying the applicable grounds, the technical and legal basis for the decision, the public servants and positions affected, the applicable employment benefits and severance pay, the effective date, and the available legal remedies. Pursuant to **Article 24 of the Regulations to the Framework Law on Public Employment**, as well as Article 20(e) of Law No. 10159, the termination may take effect once the applicable employment benefits and severance compensation have been **paid in advance**, unless, prior to the termination decision, the public servant elects a legally available employment mobility alternative. **Communication MIDEPLAN-DM-CIRC-0016-2026** was published in Official Gazette (*La Gaceta)* No. 179 and became effective upon publication. Mandatory workforce reduction proceedings initiated before its entry into force will proceed under previous rules without affecting actions validly taken under the applicable legal framework. Our firm recommends that entities subject to these provisions **review their internal procedures for managing reorganizations and mandatory workforce reductions**, ensuring that the relevant technical, legal, budgetary, and human resources assessments are properly documented, that available alternatives are considered, and that compliance with all applicable safeguards is verified before any termination decision is made. 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