Thursday 17 June 2021

“Domestic” Outsourcing in Costa Rica

homecaretaker090210-thumb-640xauto-849-thumb-640xauto-2939

In business, outsourcing is used to contracting out a business process to a third-party. Outsourcing became popular in the United States near the turn of the 21st century, and includes both foreign and domestic contracting, and sometimes includes offshoring or relocating a business function to another country. Financial savings from lower international labour rates is a big motivation for outsourcing/offshoring.

Costa Rica is a major outsourcing services provider, particularly in the technology and services industries.

- Advertisement -

However, outsourcing is now taking on a new twist: outsourcing a domestic worker or maid.

Outsourcing the services of a maid can be a money saver for the employer, to the detriment of the employee. More important, outsourcing a domestic worker does not have a legal framework in Costa Rica.

domestic_sufferingThis means that some “vivillos” (nasty employers), hire a maid – foreign or national – on an outsourcing basis to avoid the “prestaciones” – the severance pay and benefits when the working relationship comes to an end.

Walter Villalobos, assistant director of inspections at the Ministry of Labour (Ministerio de Trabajo or MTSS) confirms that the phenomenon is taking root in the country and precisely for the lack of a law, leaving the worker defenceless, as the current laws cannot be used to resolve labour conflicts with respect to outsourcing.

- Advertisement -

Villalobos explained that the minimum salary cannot be avoided through outsourcing, but both parties must make it clear who will cover expenses such as social security (Caja), private insurance, severance, bonus, etc.

If those items are not clear from the beginning there will is a potential problem and most likely the employee will be on the losing end, given there is no law to support the contract.

Where it gets complicated, says Villalobos, is when the contractor – the person hiring the service – has the power to give orders to the subcontractor – the maid, as the obligations in this case become joined and when it comes to termination, the contractor turned employer now must pay severance, that includes vacation pay and aguinaldo, etc.

“The contract relationship gets complicated, for only an employer has the right to give orders to an employee. Simply everyone who gives the maid orders becomes the employer, which then are jointly responsible for paying benefits”, explains Villalobos.

Villalobos was emphatic that salaries are untouchable, no matter the type of working relationship established.

By law, a domestic worker’s salary can only reduced by 9% to cover the cost of social security (Caja). Nor can a domestic worker be force to purchase private insurance to avoid payment to the Caja, at her own expense.

- Advertisement -

- Advertisement -

FACT CHECK:
We strive for accuracy in its reports. But if you see something that doesn’t look right, send us an email. The Q reviews and updates its content regularly to ensure it’s accuracy.

Ricohttp://www.theqmedia.com
"Rico" is the crazy mind behind the Q media websites, a series of online magazines where everything is Q! In these times of new normal, stay at home. Stay safe. Stay healthy.

Related Articles

Informants assisted OIJ in corruption investigations, says the minister

QCOSTARICA - The investigation into alleged bribery of public officials in...

MOST READ

Vaccine Tourism – A Practical Guide

By Amy Gdala, Guest Contributor - The US has a surplus of vaccines, while Costa Rica is struggling to supply sufficient numbers to citizens...

Plate rupture has potential for stronger quakes

QCOSTARICA - The 5.7-magnitude tremor, felt at 5:27 pmon Thursday, occurred in a maritime zone with the potential for stronger earthquakes, explained Ivonne Arroyo,...

Europe opens the doors to tourism, these are the requirements

Q TRAVEL - Europe opened the doors to tourism. While worldwide vaccination against covid-19 advances above the levels of each country, the restrictions are...

Informants assisted OIJ in corruption investigations, says the minister

QCOSTARICA - The investigation into alleged bribery of public officials in exchange for contracts for road works, received help from informants within the Consejo...

College of Physicians negotiates donation of a million and a half vaccines against covid-19

QCOSTARICA - This week there could be very good news for the country in the fight against the coronavirus pandemic if the College of...

Simple to request certification of vaccines against covid-19 applied in Costa Rica and abroad

QCOSTARICA - The Ministry of Health issued a new guideline on Thursday that establishes the requirements to request the vaccination certificate against covid-19 in...

Tourism’s path to recovery

QREPORTS - A new travel trends research paper released today by Tripadvisor®, the world's largest travel guidance platform, reveals that vaccine rollouts globally are...

Ortega government accuses imprisoned opponents of receiving money from the United States to overthrow him

TODAY NICARAGUA – The Nicaraguan government assures that the imprisoned political opponents detained on charges of “inciting foreign intervention” are “usurpers” financed by the...

5.7 Quake jolts Costa Rica

2021-06-10 17:27:0.5, Magnitude: 5.76, Depth 10.0 km, Epicenter: 95.5 km Southwest Malpais de Puntarenas. The jolt was felt also in the Central Valley. No reports...

WANT TO STAY UP TO DATE WITH THE LATEST!

Get our daily newsletter with the latest posts directly in your mailbox. Click on the subscribe and fill out the form. It's that simple!

Log In

Forgot password?

Forgot password?

Enter your account data and we will send you a link to reset your password.

Your password reset link appears to be invalid or expired.

Log in

Privacy Policy

Add to Collection

No Collections

Here you'll find all collections you've created before.