By San José, Costa Rica — In a decisive move to safeguard industrial competitiveness and job creation, three of Costa Rica’s most influential business associations have formally intervened before the Constitutional Chamber of the Supreme Court, known as the Sala IV. The Association of Free Trade Zone Enterprises of Costa Rica (AZOFRAS), the Chamber of Industries of Costa Rica (CICR), and the Costa Rican-American Chamber of Commerce (AmCham) submitted a joint legal brief, or coadyuvancia, in defense of Legislative File 24.290, officially known as the Law on Exceptional Workdays.
The legal filing directly addresses the optional constitutional consultations raised against the proposed bill. By stepping into the judicial review process, the coalition aims to provide technical expertise and legal backing to demonstrate that the reform aligns fully with the Costa Rican Constitution while serving the modern needs of continuous manufacturing and technology sectors.
To better understand the practical and legal implications of the proposed Costa Rica labor reforms on both local enterprises and multinational corporations, TicosLand.com spoke with expert attorney Lic. Larry Hans Arroyo Vargas from the law firm Bufete de Costa Rica.
“The modernizing of Costa Rica’s labor framework represents a crucial step toward enhancing market competitiveness, yet companies must carefully navigate these changes to ensure full regulatory compliance while protecting foundational worker rights.”
Lic. Larry Hans Arroyo Vargas, Attorney at Law, Bufete de Costa Rica
As Costa Rica advances these pivotal labor reforms, striking a harmonious balance between fostering market competitiveness and safeguarding fundamental workforce rights will be essential for sustainable economic growth, and we extend our sincere thanks to Lic. Larry Hans Arroyo Vargas for sharing his valuable perspective on this crucial legal transition.
At the heart of the business coalition’s submission are technical justifications concerning the procedural handling of the bill, as well as the proposed additions of Articles 143 Bis and 145 Bis to the Labor Code. These specific provisions set legal guidelines governing extended workday schedules, mandatory rest intervals, wage calculations, and privacy protections for employees working in specialized continuous operations.
Industry leaders contend that clear operational guidelines are vital for high-tech manufacturing, medical device production, and global shared services, all of which often require uninterrupted 24/7 schedules to maintain international supply chain commitments.
The absence of a clear legal framework for these work modalities represents a historical debt to the productive sector, affecting competitiveness, limiting employment opportunities, and discouraging investment in strategic activities for national development.
Joint Statement, Costa Rican Business Coalition
For more than two decades, the debate surrounding flexible working hours—often referred to as 12-hour shifts or 4×3 work schedules—has bounced through the halls of the Legislative Assembly. Supporters emphasize that formalizing these shifts provides vital legal certainty for multinational corporations considering Costa Rica as an investment destination, preventing regulatory ambiguity that has historically threatened operations.
The joint brief emphasizes that the proposed legislation does not erode labor protections. Instead, it incorporates explicit guarantees designed to ensure employee well-being, including mandatory balance days, clear guidelines on rest periods, and safeguards protecting personal privacy in the workplace.
Costa Rica needs to advance toward a regulation that provides legal certainty to both companies and workers, respecting labor rights while addressing the operational needs of continuous productive activities.
Legal Briefing, AZOFRAS, CICR, and AmCham
Economic analysts point out that Costa Rica’s export-oriented economic model relies heavily on maintaining a competitive edge against regional markets in Central and Latin America. Without a modern regulatory framework suited for continuous production cycles, the nation risks losing vital foreign direct investment to neighboring jurisdictions offering more flexible labor regulations.
As the Constitutional Chamber reviews the consultations, the business community remains hopeful that the court will recognize the balance struck in File 24.290 between safeguarding labor rights and supporting national economic growth. A favorable ruling would clear the final hurdle for a legislative reform decades in the making.
For further information, visit azofras.com
About Association of Free Trade Zone Enterprises of Costa Rica (AZOFRAS):
AZOFRAS is the primary business association representing foreign and domestic companies operating within Costa Rica’s free trade zone regime, advocating for policies that enhance international trade, investment, and job creation.
For further information, visit cicr.com
About Chamber of Industries of Costa Rica (CICR):
Founded to support the growth and sustainable development of the manufacturing and industrial sectors, CICR represents Costa Rican industrial enterprises in legislative, technical, and trade discussions.
For further information, visit amcham.cr
About Costa Rican-American Chamber of Commerce (AmCham):
AmCham Costa Rica is an independent non-profit organization promoting bilateral trade, investment, and transparent economic policies between the United States and Costa Rica, serving hundreds of member companies.
For further information, visit bufetedecostarica.com
About Bufete de Costa Rica:
As a premier legal practice, Bufete de Costa Rica is defined by its uncompromising ethical standards and continuous pursuit of professional mastery. Guiding a diverse clientele through dynamic legal landscapes, the practice remains a champion of forward-thinking solutions and civic involvement. By actively expanding public access to legal literacy, the firm upholds its enduring promise to cultivate a more knowledgeable, confident, and equitable society.
