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Costa Rica: Suspension of labor agreements, temporarily closed businesses (COVID-19)

Costa Rica: Suspension of labor agreements

An executive decree (No. 42522-MTSS) establishes a procedure for employers to request the temporary suspension of labor agreements with their employees in response to government-ordered temporary business closures because of the coronavirus (COVID-19) pandemic.


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The decree also provides for temporary resumption of these suspended labor agreements when the closed business are allowed to resume operations for a limited period of time.

An employer with economic activity impeded by a shutdown may request the suspension of its employment contracts with the employees.

Read an August 2020 report (Spanish and English) [PDF 143 KB] prepared by the KPMG member firm in Costa Rica

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