San Jose, Costa Rica – The Costa Rican Legislative Assembly has given its final approval to a landmark reform that formally regulates remote work performed from outside the country. This new legislation sets forth a clear framework of conditions for both employers and employees, addressing a growing trend in the globalized workforce.

The reform, championed by Deputy Alejandro Pacheco of the Social Christian Unity Party, aims to provide legal clarity and structure to remote work arrangements that cross international borders. While the legislation has passed its second and final debate, it awaits the signature of President Rodrigo Chaves and its subsequent publication in the official gazette, La Gaceta, before it can be fully enacted.

A key aspect of the new law is that it does not mandate companies to approve all requests for remote work abroad. Instead, it establishes a legal pathway for such arrangements, provided that both the employer and employee reach a mutual agreement. This approach allows for flexibility while providing a legal framework for these work arrangements.

The legislation outlines two distinct scenarios regarding the allocation of costs:

Employer-Initiated Remote Work: If the employer initiates the request for an employee to work remotely from abroad, the employer is obligated to cover all associated costs. This includes providing the necessary technological tools, equipment, and ensuring adequate labor insurance coverage.
Employee-Initiated Remote Work: Conversely, if the employee requests to work remotely from abroad, they will be responsible for covering their own expenses. This includes the cost of equipment, internet access, and any necessary insurance. However, the legislation allows for companies to voluntarily contribute to or cover some of these costs if they choose to do so.
This new legislation reflects Costa Rica's adaptation to the evolving landscape of work, particularly in the wake of the increased prevalence of remote work. By establishing clear guidelines and responsibilities, the reform seeks to protect the rights of both employers and employees while embracing the opportunities presented by remote work.

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