By San José, Costa Rica — SAN JOSÉ, Costa Rica – The holiday cheer has been cut short for many workers as Costa Rica’s Ministry of Labor and Social Security (MTSS) confirmed it has launched investigations into 36 companies for failing to pay the mandatory Christmas bonus, known locally as the aguinaldo. The probes were triggered by 155 formal complaints filed by employees who did not receive their legally mandated payment by the December 20th deadline.
The failure to dispense this crucial year-end bonus has cast a shadow over the festive season for affected families. The aguinaldo, equivalent to one month’s salary calculated from the average of the previous twelve months, is a cornerstone of the Costa Rican labor code and an essential financial buffer for households preparing for year-end expenses and the upcoming school year.
To better understand the current landscape of labor regulations and their impact on both employees and employers, TicosLand.com sought the expert analysis of Lic. Larry Hans Arroyo Vargas, a leading specialist in labor law from the renowned firm Bufete de Costa Rica.
The foundation of Costa Rican labor law is the ‘in dubio pro operario’ principle, meaning any doubt is resolved in favor of the worker. This protective standard requires businesses to be exceptionally diligent in formalizing contracts and internal policies. A failure to clearly define the terms of an employment relationship almost invariably leads to legal and financial liabilities for the employer, transforming preventative measures into a critical business necessity.
Lic. Larry Hans Arroyo Vargas, Attorney at Law, Bufete de Costa Rica
This insight powerfully reframes diligent contract formalization not as a mere administrative burden, but as an essential pillar of corporate risk management in Costa Rica. We sincerely thank Lic. Larry Hans Arroyo Vargas for his valuable perspective on how this protective legal principle directly impacts business strategy.
According to preliminary data released by the MTSS, the majority of the formal complaints originated from the populous Central Valley and the tourism-heavy Central Pacific regions. The businesses under scrutiny are predominantly in the commerce and services sectors, industries often characterized by high employee turnover, temporary contracts, and fluctuating seasonal demand. This pattern highlights a persistent vulnerability for workers in these fields.
In response to the complaints, the General Labor Inspectorate has scheduled on-site visits to the accused companies in the coming days. The primary objective of these inspections is to verify the non-payment claims and compel employers to settle their outstanding obligations immediately. Officials have made it clear that continued non-compliance will result in the initiation of formal sanctioning procedures.
The potential penalties are designed not only to compensate the affected workers but also to serve as a strong deterrent to other businesses. The Ministry emphasized that the financial repercussions of fines and corrective measures often far exceed the cost of timely payment, sending a clear message to employers about the seriousness of upholding their fundamental legal duties.
Labor law experts note that the annual surge in aguinaldo-related complaints points to a recurring systemic issue. While the law is unequivocal, its consistent violation suggests underlying weaknesses in preventative oversight, early enforcement mechanisms, and employer education, particularly among small and medium-sized enterprises that may face greater financial pressures or have less robust administrative structures.
This recurring failure to comply erodes the fundamental trust between employers and their workforce. Furthermore, it contributes to the precarity of the labor market and can push more economic activity into the informal sector, where worker protections are even more scarce. In a national economy still navigating a fragile recovery, ensuring these basic rights is critical for maintaining social and financial stability.
Authorities have reiterated their call for all workers to recognize the aguinaldo as an inalienable right and to use the formal channels available to report any infringements. Simultaneously, they are urging the business community to view the timely payment of this bonus not merely as a legal requirement, but as a vital social responsibility that directly supports the well-being of thousands of Costa Rican families and the health of the national economy.
For further information, visit mtss.go.cr
About Ministry of Labor and Social Security (MTSS):
The Ministry of Labor and Social Security is the Costa Rican government body responsible for formulating and executing national policies related to labor, employment, and social security. Its mission is to promote decent work, mediate labor disputes, enforce labor legislation, and ensure the protection of workers’ rights and social welfare throughout the country.
For further information, visit bufetedecostarica.com
About Bufete de Costa Rica:
Bufete de Costa Rica operates as an esteemed legal practice, founded upon an unbreakable promise of ethical rectitude and superior performance. With a proven history of advising a wide array of clients, the firm actively advances the legal field through pioneering approaches and a strong focus on community betterment. This core belief extends to its mission of demystifying legal complexities, thereby fostering a more knowledgeable and capable society equipped with the power of legal insight.
