Legislative status: First Debate Procedure. The Executive Power included within the call for Extraordinary Assemblies of the Legislative Assembly the project of the Law of the Independent Worker (Bill No. 21.434). It is known that an independent or self-employed worker is one or those individuals who carry out a job or develop commercial or industrial activities individually or collectively that are not under a labor relationship. That means that there is no relationship of subordination with an employer, there is no schedule, much less a salary. This bill defines it as “…a natural person who habitually, personally and directly carries out an economic activity for profit, without mediating an employment relationship under the terms of the Labor Code.”

It is known that this figure has become increasingly popular and that is why it is decided to present this project. The initiatives that give origin to this regulation are the following:
1. That there is no adequate legislation in charge of regulating what is related to the payment of social security contributions for independent workers.
2. Independent workers pay high fees compared to salaried workers.
3. That the Constitutional Chamber has established that the security quotas have a parafiscal nature. This means that they are mandatory for a certain group and will be used for the benefit of that sector.
This project, in addition to defining important concepts, establishes innovative regulations, such as the following:

• Employee benefits: Independent workers will have the same rights and benefits as salaried workers and must meet the same requirements and deadlines. These can be enjoyed from the date on which the requirements have been met and the corresponding fees have been paid.
• Equality in the quotation regimen: Equality is established in the Health Insurance contribution and the Disability, Old Age, and Death Insurance between independent workers and salaried workers.
• Administrative procedure: In case a worker is considered a defaulter, he will be processed in a summary process in which he can demonstrate he has complied with the payment obligation.
•  Prescription: For the obligations of independent workers, a term of four years is established. In addition, the possibility is introduced for the interested party to declare the prescription in the administrative office. This is very different from what must be done today since the defendants must wait for the exhaustion of the administration and the continuation of the process to be able to raise the prescription, which, in addition to causing a loss of time, becomes a much more tedious process for those involved.
• Obligations of independent workers: We consider that this is one of the essential points that are regulated because although said regulation presents benefits that the worker will have, it will also establish a series of obligations that must be fulfilled, such as, for example, registering with the Costa Rican Social Security Fund within eight business days after the start of their activity, periodically submitting to the Costa Rican Social Security Fund (CCSS by its acronym in Spanish) a self-settled declaration of their net income, making the payment of the fee within the term and in the form provided by the CCSS.

It must be considered that, in addition, it establishes parameters to know how much an independent worker must pay. The contribution fee will be the result of the independent worker’s contribution base (net income derived from work in a determined period) multiplied by the percentage established by the Board of Directors of the Costa Rican Social Security Fund for all workers.

You should consider having good legal advice to comply not only with the requirements established on this project but also to assert the benefits and enjoyments that by law correspond to each independent worker. If you require advice on Labor Law, ERP Lawyers has a specialized team in the field. Do not hesitate to contact us by email at info@erplawyers.com