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Paola Rojas, Senior Associate

Costa Rica
  
 Labor Law


Approval of Reform to the Law to Regulate Remote Work  

March 26, 2025

Arias - The Legislative Assembly carried out a study of a bill aimed at approving a reform to the Law Regulating Teleworking, resulting in Law No. 9738, which makes a series of clarifications that were necessary to regulate teleworking by employees abroad.

This reform is intended to clarify the following:

- That Remote Work can be carried out both nationally and abroad.

- That when an employee has to carry out his or her duties abroad, the employer must take out extraterritoriality coverage in the occupational risk policies.

- That there must be consent from the employee to carry out the functions abroad and the employer must also provide all the technological instruments, such as equipment and programmes necessary for the development of the work, and the employer must also assume its obligations in terms of occupational risk insurance or other necessary insurance.

Extraterritorial coverage, according to the Technical Standard of Occupational Risk Insurance, must be extended by the National Insurance Institute in the case of companies or activities whose employees must carry out functions outside of Costa Rica.

This protection is provided at no additional cost and does not require the submission of any report prior to the trip; in the event of an accident, the employee may attend the nearest emergency medical centre, and the employer must report the accident using the form ‘Notice of accident or occupational illness and medical care order’, including all the information about what happened.

In addition, various requirements must be met for the approval of invoices, which will be recognised through the reimbursement of expenses.

This reform has been approved in a second debate and only remains for the signature of the President of the Republic and its publication in the Official Gazette for it to come into force.

The information provided by ARIAS® is presented for informational purposes only. This information is not legal advice and is not intended to create, nor does it constitute, an attorney-client relationship. Readers should not act on the basis of this information without seeking advice from professionals in the field.

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