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Employment Termination in Costa Rica

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Termination process

Employee contracts can be terminated if a just cause is established, such as dishonesty, negligence, fraud, redundance, or any other tangible reasons, with notice provided in advance and stipulated below.

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Notice period

Notice periods required under Costa Rican law depend on an employee’s tenure, ranging between 1 week and a month.

  • 0 – 3 months: No notice period
  • 3 – 6 months: 1 week
  • 6 – 12 months: 15 days
  • 1+ year: 1 month
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Severance pay

Severance pay entitlements are issued based on an employee’s tenure with the employer.

  • 3 – 6 months: 7 days pay
  • 6 – <12 months: 14 days’ pay
  • 1 year: 19.5 days’ pay
  • 2 years: 20 days’ pay
  • 3 years: 20.5 days’ pay
  • 4 years: 21 days’ pay
  • 5 years: 21.24 days’ pay
  • 6 years: 21.5 days’ pay
  • 7 – 9 years: 22 days’ pay
  • 10 years: 21.5 days’ pay
  • 11 years: 21 days’ pay
  • 12 years: 20.5 days’ pay
  • 13 years: 20 days’ pay
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Probation periods

The Probation Period is maximum of 3 months. It is common to apply the maximum probation period to senior roles.

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