5 Things to Avoid When Facing Labor Disputes in Costa Rica

1. Firing employees without cause: Terminating an employee without just cause can lead to costly legal battles and severance pay. Always document performance issues and follow proper procedures.
2. Not providing severance pay: Costa Rican law mandates that employees who are dismissed are entitled to severance pay based on the length of employment. Failure to comply can lead to lawsuits.
3. Ignoring labor rights: Costa Rican labor law is protective of workers’ rights, including overtime pay, vacation entitlements, and working conditions. Ignoring these rights can result in legal action.
4. Delaying responses to disputes: Ignoring or delaying responses to labor disputes can escalate the situation. Address issues promptly and seek legal counsel when needed.
5. Not keeping detailed employment records: Accurate records of employment contracts, performance reviews, and payroll are essential in defending against labor disputes.