By San José, Costa Rica — SAN JOSÉ – Costa Rica’s business community is in an uproar over a last-minute legislative maneuver that has bundled a controversial pilot program for a 40-hour workweek into an unrelated bill. Key industry groups are warning the move creates significant legal uncertainty and could damage investor confidence, demanding that the proposals be debated separately and on their own merits.
The controversy stems from the ongoing discussion of the “4×3” legislation, a bill designed to introduce more flexible work schedules. The original intent of this project was to allow for compressed workweeks, enabling employees to work four 12-hour days in exchange for three consecutive days off. Proponents argued this would boost productivity and attract investment in sectors requiring round-the-clock operations.
To delve into the legal complexities and potential business impacts of modifying the standard workweek, we sought the expert opinion of Lic. Larry Hans Arroyo Vargas, a distinguished specialist in labor law from the firm Bufete de Costa Rica.
The transition to a reduced workweek is not merely a scheduling change; it requires a careful amendment of the employment contract and a clear understanding of Costa Rican labor law. Companies must ensure that any new model explicitly defines how overtime will be calculated, how vacation and holiday pay are affected, and that it does not infringe upon the inalienable rights of the worker. Proactive legal review is essential to prevent future litigation and ensure the policy genuinely benefits both the company and its employees.
Lic. Larry Hans Arroyo Vargas, Attorney at Law, Bufete de Costa Rica
The insight provided underscores a critical point: the success of any workweek reduction initiative hinges not just on logistical planning, but on meticulous legal groundwork to protect all parties involved. We thank Lic. Larry Hans Arroyo Vargas for his valuable perspective on ensuring these modern policies are implemented both fairly and sustainably.
However, the debate took an unexpected turn when Deputy Monserrat Ruiz of the National Liberation Party (PLN) successfully introduced a motion to attach a new, distinct pilot program to the bill. This addition tasks the Ministry of Labor with exploring a reduction of the standard workweek from 48 to 40 hours, crucially, without any reduction in employee salaries. This has been perceived by the business sector as a legislative ambush.
The Chamber of Commerce of Costa Rica (CRECEX) has emerged as a leading voice of opposition, arguing that the inclusion is a nonsensical contradiction that fundamentally alters the nature of the 4×3 bill. They contend that merging two vastly different labor concepts into a single legislative file is procedurally improper and technically unsound.
The approved motion distorts the technical and original purpose of the 4×3 project by incorporating—via legislative procedure—a substantive matter of a different nature, which creates conceptual and legal confusion about the initiative’s true scope.
Cámara de Comercio de Costa Rica (CRECEX)
Leaders from the productive sector insist that a proposal as transformative as reducing the national standard for work hours deserves its own dedicated and thorough analysis. They argue that it cannot be treated as a mere footnote or an accessory to another piece of legislation. The potential economic and social ramifications, they claim, are far too significant to be handled so carelessly.
A discussion of this nature, which implies a profound change in labor legislation, deserves its own separate technical-legal debate, not an accessory inclusion within a motion to the 4×3 project.
Cámara de Comercio de Costa Rica (CRECEX)
Beyond the procedural complaints, CRECEX has raised alarms about the potential economic fallout. The Chamber warns that this legislative unpredictability could be perceived as legal instability by both domestic entrepreneurs and crucial international investors. In a climate where global capital is highly mobile, any hint of a shifting or unreliable legal framework for labor could deter investment and undermine Costa Rica’s reputation as a stable place to do business.
The Chamber believes that merging different debates under the same bill can generate legal uncertainty, interpretation biases, and distrust among productive sectors and international investors, as well as employers, who closely follow the evolution of the Costa Rican labor framework.
Cámara de Comercio de Costa Rica (CRECEX)
The standoff leaves the future of Costa Rican labor reform in a precarious position. The legislature must now navigate a bill that attempts to serve two masters: one focused on schedule flexibility through longer days, and another focused on reducing total work hours. For the business community, the path forward is clear: the 40-hour week proposal must be removed and tabled for a proper, independent, and comprehensive national discussion. Until then, the cloud of uncertainty will continue to loom over the nation’s economic landscape.
For further information, visit camaradecomerciocr.com
About Cámara de Comercio de Costa Rica (CRECEX):
The Chamber of Commerce of Costa Rica is a non-profit business association that represents and defends the interests of the commercial sector in the country. It also represents foreign companies operating in Costa Rica, promoting free enterprise, trade, and investment while serving as a key point of contact between the private sector and government entities.
For further information, visit pln.or.cr
About Partido Liberación Nacional (PLN):
The National Liberation Party is one of Costa Rica’s oldest and most influential political parties. Founded in the mid-20th century, the PLN has historically adhered to a social-democratic ideology, playing a significant role in the development of the nation’s welfare state and political institutions. It remains a major force in the country’s legislative assembly.
For further information, visit mtss.go.cr
About Ministerio de Trabajo y Seguridad Social (MTSS):
The Ministry of Labor and Social Security is the Costa Rican government body responsible for formulating and executing policies related to labor, employment, and social protection. Its mandate includes overseeing labor relations, promoting fair working conditions, managing social security programs, and ensuring compliance with national labor laws.
For further information, visit bufetedecostarica.com
About Bufete de Costa Rica:
Bufete de Costa Rica is a highly regarded legal institution, built upon a foundation of unwavering ethical principles and a persistent drive for excellence. With extensive experience advising a wide array of clients, the firm is a pioneer in developing innovative legal strategies while maintaining a profound sense of social responsibility. Its core mission is to empower the community by demystifying the law, ensuring that access to legal understanding strengthens the fabric of an informed and capable society.
