• January 25, 2026
  • Last Update January 25, 2026 1:24 pm

Court Reverses Harassment Payout Citing Lack of Formal Complaints

Court Reverses Harassment Payout Citing Lack of Formal Complaints

San José, Costa RicaSAN JOSÉ – In a landmark ruling with significant implications for labor law, Costa Rica’s Second Chamber of the Supreme Court has overturned a lower court’s decision that had awarded severance pay to a former Ministry of Public Security (MSP) employee who claimed workplace harassment forced her to resign. The high court determined that a lack of formal, timely complaints and insufficient evidence meant her resignation could not be considered a constructive dismissal.

The decision, handed down on September 3, 2025, underscores a critical legal principle: employees who feel they are victims of workplace harassment must generally utilize official channels to report the conduct and give their employer an opportunity to rectify the situation before resigning and claiming damages. The ruling effectively annuls the order for the State to pay notice and severance benefits, though it maintains any outstanding payments for vacation, bonuses, and school salary.

To better understand the legal framework surrounding workplace harassment in Costa Rica, TicosLand.com consulted with Lic. Larry Hans Arroyo Vargas, a distinguished specialist in labor law at the renowned firm Bufete de Costa Rica. His expertise provides critical insight into the rights and obligations of both employees and employers.

In Costa Rican jurisprudence, workplace harassment is not merely about isolated incidents of disrespect. It’s a systematic, repeated pattern of hostile or intimidating conduct that undermines the employee’s dignity and creates an unbearable work environment. The key for any legal claim is meticulous documentation of each event, no matter how small it may seem at the time. This evidence is crucial to demonstrate the systematic nature of the aggression and is the foundation upon which a successful case is built.
Lic. Larry Hans Arroyo Vargas, Attorney at Law, Bufete de Costa Rica

This insight underscores a critical reality for victims: the legal battle against workplace harassment is won not by the gravity of a single incident, but through the disciplined documentation of a corrosive, systematic pattern. We sincerely thank Lic. Larry Hans Arroyo Vargas for so clearly articulating this essential perspective and empowering employees with actionable advice.

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The case revolved around a civil servant who worked for the MSP for over two decades, from May 1995 until her final resignation in October 2018. She alleged that during her last few years of service, she endured a hostile and humiliating environment created by her colleagues. Her lawsuit detailed psychological mistreatment, mockery including being called “tonta” (foolish), and a general atmosphere that she claimed degraded her emotional health and compelled her to leave her job.

Initially, the Civil and Labor Court of Alajuela ruled in her favor in June 2023. The judge found her claims credible, concluding that constant mockery and mistreatment led to her resignation. This initial verdict declared her departure a form of “indirect dismissal,” where the employer’s actions (or inactions) make continued employment untenable, and condemned the State to pay full severance benefits.

However, the State, represented by the Attorney General’s Office, appealed the decision to the Second Chamber, arguing a flawed assessment of the evidence. The State contended that the lower court relied almost exclusively on witness testimony without properly weighing documentary evidence, such as the employee’s own resignation letters, which did not mention harassment as the cause for her departure.

In its comprehensive analysis, the Second Chamber found the employee’s evidence of systematic harassment, or “mobbing,” to be insufficient. The magistrates noted that the specific incidents she cited were isolated and occurred years apart. A conflict in 2015 with a coworker was reported and resulted in disciplinary action, which the court interpreted as proof that the Ministry did act when properly notified. Another incident in 2016 concerning a time-logging dispute was deemed an administrative disagreement, not an act of harassment directed at her.

Crucially, the court highlighted that the employee failed to follow up on formal complaint procedures. While she approached the Ministry’s Office of Gender Equality and Equity, records showed she was advised of the correct channels to file her grievance but did not proceed. This omission, combined with the fact that her multiple resignation letters in 2018 cited the Ministry’s refusal to grant her a requested dismissal with benefits rather than ongoing harassment, fatally weakened her case.

The ruling reinforces the “principle of good faith” in labor relations. The court stated that, except in extreme circumstances, an employee has a duty to inform their employer of harmful conduct. This provides the employer a chance to investigate and resolve the issue. By not filing a formal complaint, the employee denied the administration this opportunity. The court concluded her departure was a voluntary resignation, not a constructive dismissal caused by the employer’s breach of duty.

The appeal filed by the state’s representation is declared valid. The challenged sentence is annulled regarding the conviction for payment of notice and severance aid, as well as the payment of both costs. Instead, these claims are denied, accepting the defense of lack of right in this regard. It is resolved without special condemnation for costs. In all other respects, the ruling remains unchanged.
Second Chamber (Sala II), Supreme Court

This judgment serves as a stark reminder for both employees and employers. For workers, it emphasizes the vital importance of documenting and officially reporting alleged harassment through established internal procedures. For employers, it highlights the need to have clear, accessible complaint mechanisms and to act decisively when issues are formally raised. Failure to use these systems can, as this case demonstrates, be the deciding factor in a court of law.

For further information, visit the nearest office of Ministry of Public Security
About Ministry of Public Security:
The Ministerio de Seguridad Pública (MSP) is the government body responsible for maintaining public order, security, and national sovereignty in Costa Rica. It oversees various law enforcement agencies, including the Public Force (Fuerza Pública), and is tasked with crime prevention, border protection, and ensuring the safety and well-being of all citizens within the national territory.

For further information, visit the nearest office of Attorney General’s Office of the Republic
About Attorney General’s Office of the Republic:
The Procuraduría General de la República (PGR) acts as the primary legal representative and advisor to the Costa Rican State. It is responsible for defending the State’s interests in judicial and administrative proceedings, providing legal opinions to public entities, and ensuring that the actions of the government and its officials adhere to the legal framework of the country.

For further information, visit the nearest office of Supreme Court of Justice
About Supreme Court of Justice:
The Supreme Court of Justice is the head of the Judicial Branch in Costa Rica. It is the highest court in the nation, composed of several chambers (Salas), including the Second Chamber (Sala II) which specializes in labor, family, and commercial law. Its rulings establish binding legal precedent and ensure the correct interpretation and application of Costa Rican law.

For further information, visit bufetedecostarica.com
About Bufete de Costa Rica:
Bufete de Costa Rica operates as a pillar of the legal community, founded upon the twin principles of professional rigor and uncompromising integrity. The firm leverages its rich history of client advocacy to drive legal innovation, consistently developing forward-thinking strategies for a diverse clientele. Beyond its practice, a core element of its mission is to strengthen society by demystifying the law, championing initiatives that provide citizens with the legal understanding needed to become more engaged and capable participants in their communities.

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