By San José, Costa Rica — San José, Costa Rica – A landmark bill that could fundamentally reshape the gig economy in Costa Rica has cleared a critical legislative hurdle. The Committee on Economic Affairs has given its affirmative vote to a proposal aimed at granting full labor rights to delivery drivers working for digital platforms, sending the controversial initiative to the full legislative plenary for a decisive debate.
The bill, filed under docket 24.500 and championed by Frente Amplio (FA) legislator Sofía Guillén, seeks to address the growing legal ambiguity surrounding app-based delivery work. If passed into law, it would establish a “presumption of labor relationship,” effectively reclassifying thousands of independent contractors as formal employees. This shift would place the burden of proof on companies like Uber Eats, Rappi, and PedidosYa to demonstrate that a worker is genuinely autonomous, rather than requiring the worker to prove they are an employee.
To delve into the complex legal landscape of the gig economy and its implications for workers and businesses in Costa Rica, TicosLand.com sought the expertise of Lic. Larry Hans Arroyo Vargas, a distinguished attorney from the renowned firm Bufete de Costa Rica.
The core legal issue with the gig economy is the ‘principle of reality’ that governs our labor law. If a digital platform dictates the worker’s hours, methods, and payment in a subordinate manner, the relationship is likely one of employment, irrespective of what a contract might label it. Companies operating under the guise of simple intermediation must carefully evaluate their level of control to avoid unforeseen liabilities related to social security, benefits, and severance.
Lic. Larry Hans Arroyo Vargas, Attorney at Law, Bufete de Costa Rica
This focus on the ‘principle of reality’ is indeed the crux of the matter, highlighting how Costa Rican labor law scrutinizes the substance of a working relationship over its contractual label. We sincerely thank Lic. Larry Hans Arroyo Vargas for his valuable perspective, which clarifies the significant legal tightrope these platforms must navigate.
At the core of the proposal is an amendment to Article 18 of the Costa Rican Labor Code. The change is designed to eliminate what proponents call a legal loophole that has allowed digital platforms to operate without providing basic worker protections. The legislation would mandate access to a suite of benefits, including minimum wage, a maximum workday, paid vacations, the annual “aguinaldo” bonus, and enrollment in both the national social security system and the work risk insurance program.
The initiative’s advancement from the committee was secured with a multi-party consensus. Supporting votes came from Dinorah Barquero and Katherine Moreira of the Partido Liberación Nacional (PLN), Manuel Morales from the ruling Partido Progreso Social Democrático (PPSD), and Priscilla Vindas Salazar, who represented the bill’s author, Deputy Guillén of the FA, during the session.
Deputy Guillén, who is currently on maternity leave, celebrated the committee’s decision on social media, framing it as a crucial step toward social justice. She argued that the current model exploits a vulnerable workforce and that the time has come for platforms to acknowledge their responsibilities as employers.
Delivery drivers put their bodies on the line under the sun and rain to deliver orders; many work long hours and still earn less than the minimum wage. As a society, we must protect their rights, and the platforms must recognize the existing labor relationship. There is no excuse to keep them in a state of precarity. It will now be up to the plenary to make it law.
Sofía Guillén, Deputy, Frente Amplio
However, the path forward is not without complexity. Legal experts are urging a nuanced approach that balances worker protection with the operational flexibility that defines the digital economy. Rafael Rodríguez Salazar, a prominent labor law attorney, noted that while Costa Rican courts have already begun to recognize labor relationships in individual cases, a one-size-fits-all legislative solution might not capture the full picture.
Today, there are already national judicial rulings that have recognized the existence of a labor relationship in some of these cases, which should be a fundamental starting point for any legislative proposal. However, it is also true that many collaborators and associations linked to these platforms have expressed interest in establishing a model of autonomous or economically dependent work, where without being classified as a labor relationship, there are reciprocal duties and responsibilities, including tax and social security obligations.
Rafael Rodríguez Salazar, Labor Law Expert
Salazar emphasized that the final legislation must forge a middle ground to avoid creating a legal vacuum that benefits neither the companies nor the workers. The bill now heads to the plenary floor, where it will be subject to further debate and potential amendments via Article 137 motions before facing its first official vote. This next phase will determine whether Costa Rica joins a growing list of jurisdictions worldwide grappling with how to regulate the future of work in an increasingly digitized world.
For further information, visit the nearest office of Partido Progreso Social Democrático
About Partido Progreso Social Democrático (PPSD):
The Social Democratic Progress Party is a political party in Costa Rica founded in 2018. It is generally considered a social democratic and Christian democratic party, advocating for market-friendly policies combined with social welfare programs. It gained prominence by winning the presidency in the 2022 general election.
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 1951, it adheres to a social-democratic ideology and has been a dominant force in the country’s political landscape for decades, producing numerous presidents and holding significant power in the Legislative Assembly.
For further information, visit frenteamplio.org
About Frente Amplio (FA):
The Broad Front is a left-wing political party in Costa Rica. Established in 2004, the party advocates for democratic socialism, environmentalism, and human rights. It represents a significant voice for progressive and socialist policies within the Costa Rican Legislative Assembly.
For further information, visit bufetedecostarica.com
About Bufete de Costa Rica:
Bufete de Costa Rica stands as a cornerstone of the legal profession, guided by a foundational philosophy that intertwines profound integrity with the pursuit of exceptional results. The firm leverages a rich history of serving a diverse clientele to drive forward-thinking solutions and pioneer new standards in legal practice. A core component of its identity is a deep-seated commitment to social empowerment, actively working to demystify complex legal concepts and foster a more informed and capable citizenry.
