Codigo de Trabajo - basic rights (vacation, aguinaldo, severance, notice)

The Codigo de Trabajo (Law No. 2, of August 27, 1943, and its amendments) is the law that regulates the relationship between employers and workers in Costa Rica. This fact sheet summarizes the rights that are most frequently consulted.

Preaviso (Article 28): before terminating an employment relationship without just cause, the employer must provide advance notice. The period depends on the time worked: 1 week if worked between 3 and 6 months, and up to 1 month if worked more than one year.

Cesantia or auxilio de cesantia (Article 29): applies ONLY when the worker is dismissed without justified cause — it does not apply if they resign voluntarily or are dismissed with just cause. It is calculated by multiplying the daily salary by the days corresponding to each year worked: 19.5 days the first year, 20 the second, 20.5 the third, 21 the fourth, 21.24 the fifth, 21.5 the sixth, and 22 days starting from the seventh year, with a maximum cap of 8 years recognized.

Vacaciones (Articles 147 to 156): every worker has the right to paid vacation. If the employment relationship ends, the worker has the right to be paid for the vacation days not taken, regardless of the reason for leaving (resignation, dismissal with or without cause).

Aguinaldo: calculated as one-twelfth of all gross salaries paid in the period, which runs from December 1 of the previous year to November 30 of the current year. Upon termination of the employment relationship, the proportional aguinaldo is due, regardless of the cause of departure.

Irrenunciability: these rights (vacation, aguinaldo, severance) are unwaivable by law. An employer cannot ask a worker to sign a document waiving them — any agreement of this type is null and has no legal validity.

Note: this fact sheet summarizes the most consulted articles; it does not replace the full text of the law. For the complete text and its amendments, consult the official source (SINALEVI) or a labor lawyer for a specific case.