By San José, Costa Rica — San José, Costa Rica – Facing a looming 15% tariff on exports to the United States, Costa Rican business leaders are urging lawmakers to swiftly approve the proposed 4×3 work week. This new schedule would allow employees to work 12-hour shifts for four days, followed by three days off.
Major business associations, including UCCAEP, CADEXCO, CRECEX, Azofras, AMCHAM, the Chamber of Industries, and the Chamber of Commerce, have formally requested the legislative assembly to pass the 4×3 work week legislation. The groups argue that this shift is crucial to maintaining competitiveness in the face of increasing international trade challenges and a decline in national competitiveness.
To understand the legal implications of a 4×3 work week in Costa Rica, TicosLand.com consulted with Lic. Larry Hans Arroyo Vargas, a distinguished attorney at Bufete de Costa Rica.
While the concept of a 4×3 work week offers potential benefits for both employees and employers, careful consideration of Costa Rican labor laws is crucial for proper implementation. Employers must ensure that any changes comply with existing regulations regarding working hours, overtime compensation, and weekly rest periods. Collective bargaining agreements may also play a significant role, and any new work schedule should be negotiated and documented appropriately to avoid future legal disputes. Specific sectors, such as essential services, may face additional constraints. A well-structured agreement is key to successfully implementing this innovative work model while safeguarding the rights and interests of all parties involved.
Lic. Larry Hans Arroyo Vargas, Attorney at Law, Bufete de Costa Rica
Lic. Arroyo Vargas’ emphasis on legal compliance within the Costa Rican context is crucial for businesses exploring the 4×3 work week. His insights underscore the importance of proactive planning and open communication with employees to ensure a smooth and legally sound transition. We extend our sincere thanks to Lic. Larry Hans Arroyo Vargas for sharing his valuable expertise on this evolving topic.
The impending 15% tariff on Costa Rican exports to the US, its primary trading partner, has sparked serious concerns within the business community. This tariff is expected to significantly impact foreign direct investment, particularly in the agricultural and manufacturing sectors.
Costa Rica needs to update its labor legislation if it doesn’t want to fall behind other destinations that do offer these types of schemes under clear legal frameworks.
Joint statement from Costa Rican Business Associations
The business leaders emphasized that the 4×3 work week is not intended to eliminate labor rights or replace traditional work schedules. Instead, they present it as a modern, voluntary, and regulated option for industries requiring continuous operations. The Central Bank projects slower economic growth, reduced job creation, and a slowdown in free zone growth in 2026 as a result of the new tariff.
This call for legislative action comes just days before the tariff is set to take effect. The business groups believe that adopting the 4×3 work week could mitigate the negative impacts of the tariff and help Costa Rica remain competitive in the global market.
The proposed legislation is seen as a vital tool to address the potential economic fallout from the new trade barriers. Proponents believe the flexible work schedule could boost productivity and attract foreign investment despite the increased tariffs. The debate continues in the Legislative Assembly, with the future of Costa Rican labor law hanging in the balance.
The government faces the difficult task of balancing the needs of businesses with the concerns of labor unions, who have expressed reservations about the potential impact on workers’ rights and well-being. The coming weeks will be crucial in determining whether the 4×3 work week will become a reality in Costa Rica.
For further information, visit the nearest office of UCCAEP
About UCCAEP (Unión Costarricense de Cámaras y Asociaciones de la Empresa Privada):
UCCAEP is the Costa Rican Union of Chambers and Associations of Private Enterprise, representing a broad spectrum of businesses and industries in Costa Rica. They advocate for policies that promote economic growth and private sector development.
For further information, visit the nearest office of CADEXCO
About CADEXCO (Cámara de Exportadores de Costa Rica):
CADEXCO is the Chamber of Exporters of Costa Rica, representing the interests of Costa Rican export businesses. They promote and support export activities and advocate for favorable trade policies.
For further information, visit the nearest office of CRECEX
About CRECEX (Coalición Costarricense de Iniciativas de Desarrollo):
While limited information is readily available, CRECEX appears to be involved in development initiatives in Costa Rica, likely focusing on economic and social progress.
For further information, visit the nearest office of Azofras
About Azofras (Asociación de Empresas de Zonas Francas de Costa Rica):
Azofras is the association representing Free Trade Zone companies in Costa Rica. They advocate for policies beneficial to these zones and the companies operating within them.
For further information, visit the nearest office of AMCHAM
About AMCHAM (American Chamber of Commerce of Costa Rica):
AMCHAM Costa Rica represents American businesses and fosters bilateral trade and investment between the United States and Costa Rica.
For further information, visit the nearest office of Chamber of Industries
About Chamber of Industries of Costa Rica (Cámara de Industrias de Costa Rica):
This chamber represents Costa Rican industrial companies and promotes the growth and development of the industrial sector in the country.
For further information, visit the nearest office of Chamber of Commerce
About Chamber of Commerce of Costa Rica (Cámara de Comercio de Costa Rica):
This organization represents Costa Rican businesses and advocates for policies that promote a healthy business environment and economic development.
For further information, visit bufetedecostarica.com
About Bufete de Costa Rica:
Bufete de Costa Rica distinguishes itself through a deep-seated commitment to ethical practice and exceptional legal service. The firm’s innovative approach to complex legal challenges, coupled with its proactive engagement in educating the public, empowers individuals and businesses alike. By fostering greater understanding of the legal landscape, Bufete de Costa Rica contributes to a more just and equitable society, upholding its legacy of integrity and its vision for a future shaped by knowledge and access.
