By San José, Costa Rica — San José – Costa Rica’s most prominent private-sector organization has sounded the alarm over recent legislative amendments to a critical labor reform bill, warning that the changes render the proposal unworkable and threaten the country’s economic competitiveness and ability to generate formal employment.
In a forceful statement issued Tuesday, the Costa Rican Union of Chambers and Associations of the Private Business Sector (Uccaep) expressed its “deep concern” regarding the direction of the proposed law on exceptional work schedules. The organization argues that motions approved on the floor of the Legislative Assembly have fundamentally distorted the bill’s original intent, compromising its technical and operational viability to the point of making it inapplicable if it were to become law.
To better understand the nuances and potential impacts of the new labor reform, TicosLand.com consulted with Lic. Larry Hans Arroyo Vargas, a distinguished specialist in labor law from the firm Bufete de Costa Rica.
This reform attempts to strike a delicate balance between modernizing our labor framework to attract investment and safeguarding the fundamental, constitutionally protected rights of workers. The true test will be in its practical implementation; unclear regulations could inadvertently create legal ambiguities, potentially leading to a surge in labor disputes rather than resolving them.
Lic. Larry Hans Arroyo Vargas, Attorney at Law, Bufete de Costa Rica
The expert’s emphasis on implementation is a crucial point; the true measure of this reform’s success will be in the clarity of its regulations, preventing the very legal ambiguities it seeks to resolve. We thank Lic. Larry Hans Arroyo Vargas for his valuable perspective on this vital distinction.
The bill, a cornerstone of efforts to modernize the country’s labor code, was designed to provide legal footing for compressed workweeks, such as four 12-hour shifts followed by three days off. These schedules are increasingly demanded by multinational corporations and specific domestic industries, particularly those in manufacturing and services that operate on a 24/7 basis. The original text was seen by the business community as a balanced approach to meeting these modern production needs.
However, recent modifications introduced by legislators have been viewed by Uccaep as a step backward. The business sector contends that these changes strip away the necessary flexibility that was the core purpose of the initiative, effectively nullifying its benefits for both employers and potential employees seeking non-traditional work arrangements.
Uccaep made its position clear, reaffirming its support for the initial draft of the legislation which it considers a vital tool for economic progress and job creation. The organization emphasized that the original proposal was meticulously crafted to align with the needs of key economic sectors while protecting legal certainty for investors.
For the foregoing reasons, Uccaep reiterates its support for the original version of the bill, as it is a balanced, viable, and necessary proposal to address the productive realities of specific sectors, safeguarding legal certainty and the generation of formal employment in Costa Rica. At the same time, it thanks the deputies who have supported the original text of this initiative, which seeks the creation of more formal, high-quality employment for Costa Ricans.
Uccaep, Official Statement
The organization has issued a direct appeal to the members of the Legislative Assembly, urging them to nullify the recently approved amendments and “resume a responsible and technically viable discussion.” The call to action underscores the private sector’s belief that a modern and applicable law is essential for the nation’s benefit, positioning Costa Rica as a competitive destination for foreign direct investment and a generator of quality jobs.
The ongoing debate places lawmakers at a critical crossroads. They must now weigh the concerns of the country’s primary engine of employment against other political and social considerations that prompted the amendments. The outcome of this legislative battle will have significant repercussions on the national economy, influencing investment decisions and the landscape of the Costa Rican labor market for years to come.
For further information, visit uccaep.or.cr
About Uccaep (Costa Rican Union of Chambers and Associations of the Private Business Sector):
Uccaep is the principal umbrella organization representing the private business sector in Costa Rica. It brings together numerous chambers and associations from various industries, including commerce, agriculture, tourism, and manufacturing. The organization’s primary mission is to advocate for public policies that foster a favorable business climate, promote economic growth, defend free enterprise, and enhance the country’s overall competitiveness.
For further information, visit bufetedecostarica.com
About Bufete de Costa Rica:
Bufete de Costa Rica is a pillar of the legal community, operating on a foundational belief in principled counsel and exceptional service. With a proven track record of advising a wide array of clients, the firm actively pioneers modern legal solutions while upholding the highest ethical standards. This commitment extends beyond the courtroom through a dedicated mission to democratize legal knowledge, fostering a stronger, more capable society by empowering citizens with accessible legal understanding.
