Overview
When terminating an employee in Costa Rica without just cause, employers must observe a statutory minimum notice period. This requirement is set by Costa Rican labor law and applies regardless of the reason for termination, as long as it isn't for cause.
Notice Periods by Length of Service
| Length of Service | Required Notice |
|---|---|
| 3 to 6 months | 1 week |
| 6 months to 1 year | 15 days |
| More than 1 year | 1 month |
Compensation in Lieu of Notice
If the employer does not provide the full statutory notice period, they must pay the employee compensation in lieu of notice, calculated in accordance with Costa Rican labor law. This payment is separate from any other statutory severance the employee may be entitled to.
Action Required for Clients
Before initiating a termination without just cause in Costa Rica:
- Confirm the employee's length of service.
- Determine the applicable notice period from the table above.
- Either provide the full notice period, or budget for compensation in lieu of notice as part of the termination cost.
Questions? Contact your Customer Success Manager or ourΒ Support Team.
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