Thursday 29 September 2022

Coronavirus: New law to reduce working hours protects almost 2,800 workers

The new law allows employers to reduce working hours if there is a drop in business and protects employees from layoffs

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29 September 2022 - At The Banks - BCCR

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Costa Rica President Carlos Alvarado signed into law the recently approved bill that allows the reduction of working hours, which will prevent nearly 2,800 people from losing their jobs.

The new law allows employers to reduce working hours if there is a drop in business and protects employees from layoffs

Lawyer Álvaro Aguilar, explained the new law in an interview on Monday on the Teletica Radio (91.5 FM) program “Malas companies”, from .

“The previous week, many companies reacted with fear and what this law avoids is that employers suspend work contracts or dismiss their workers. Thanks to the law, nearly 2,800 people were rescued (will not lose their jobs) in light of the law,” Aguilar said.

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The labor law specialist answered a series of queries related to this new law, which was approved by the legislators during the week, and on Saturday was signed into law by Alvarado.

Aguilar said that the law will be very good law for the country, it was born our of COVID-19, but it is not limited to COVID-19. “If at another time the country declares a national emergency, the law can be used for companies,” said the lawyer.

President Carlos Alvarado, in his office, signing the law on Saturday

“What the law allows is that companies reduce their working hours and apply a reduction in wages and thus not go to contract suspension. Many companies were forcing workers to keep working hours and reduce wages, and that is illegal,” explained Aguilar.

Briefly, the law allows employers to reduce working hours based on a reduction in business, the more business drops, the more hours they can cut, but not resulting in layoffs, during a national emergency.

 

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