In the Costa Rican labor law, there are two forms of dismissals: those that are with employer liability (unjustified), and those that are attributed to a worker’s fault (justified dismissal).

In the case of dismissal with employer liability, articles 28 and 29 of the Labor Code stipulate that the worker is entitled to payment as compensation for the amounts for relief of unemployment and notice (after three months of employment relationship), in addition to the compensation of vacations and the proportional end of the year bonus, along with any other benefits granted by law or agreed by the parties.

The recognition of the end of the year bonus and vacations in a proportional manner is an inalienable right by law, which is granted to all workers, regardless of the reason of termination of the employment relationship.

The second scenario refers to the dismissal of a worker without employer liability, this as a consequence of a serious fault or accumulation of faults that the worker has committed to the employment contract. In these cases, the worker would only have the right to receive the proportional end of the year bonus and the vacation days he has accumulated at the time of dismissal.

Some grounds for dismissal arise when the worker incurs in acts of violence, injury or ill-treatment against the employer or co-workers and alters discipline and work for no reason, or for revealing company secrets, missing two consecutive days or more than three alternate days in the same month without consent or notice to the employer, among other actions contemplated in article 81 of the Labor Code, which we will be developing in a separate article. Regarding the grounds for dismissal, it is worth considering that subsection l) is a drawer in which other behaviors not specifically provided for in the rest of the subsections of said article may interfere; particularly, when it comes to violations of the ethical content of the employment contract (articles 15 and 19 of the same Code), such as behaviors that involve violation of good faith, trust, loyalty, fidelity, honesty, among others.
The actions or omissions that justify a dismissal without employer liability must be of such magnitude that they make the continuity of the labor relationship unsustainable, considering that, in the event of a litigation, the burden of proof is on the employer.

If the worker considers that he is facing an unjustified dismissal, he has the possibility to present before the Ministry of Labor or the Courts of Justice, to enforce his rights, being able to charge in addition to the non-canceled means (notice and severance), the damages established in article 82 of the Labor Code, such as moral damage (already recognized by jurisprudence in labor matters), legal interests, indexation and the costs of the process, which means that, the compensations that can be legally recognized in a court ruling could represent a high cost if the employer fails to prove the cause or causes of dismissal without employer liability.

Considering the contingencies that come with a dismissal without employer liability and the compensation that can be legally recognized, it is recommended to have adequate legal advice to protect the interests of the company.

NOTE: This article, which is based on Costa Rican regulations, is issued for informational purposes, not to advise. It is distributed to help you know your rights under the law, and is published by ERP LAWYERS