Por: Norma Villalobos

Recently, the Legislative Assembly, by means of Legislative Decree number 519, approved the amendment of article 627 of the Labor Code, which currently establishes a general sanction for violations to the employer obligations established in Books I, II and III of said Code and which do not have a special sanction, setting the sanction in a fine of up to $57.14 for each violation, without not complying with the provisions of the violated norm.

With the approved amendment, penalties would be set according to the size of the company that commits the violations, as follows:

  1. for companies employing up to 10 workers, a fine of up to two minimum wages in force (up to US$730.00).
  2. For companies employing more than 10 and up to 50 workers, a fine of up to four minimum wages in force (up to US$1,460.00).
  3. For companies employing more than 50 and up to 100 workers, a fine of up to eight minimum wages in force (up to US$2,920.00).
  4. For companies employing more than 100 workers, a fine of up to twelve minimum wages (up to US$4,380.00).
    The approved amendment maintains the obligation set forth in the current Art. 627 that the imposition of the fine does not exempt the violator from complying with the infringed norm and provides that in order to calculate the amount of the fine the economic capacity of the violator or the size of the company, the seriousness of the violation committed, the intentionality of the violator and the damage caused to the workers will be taken into account, but the employer will be exonerated from all liability when it is proven that a fortuitous event or force majeure has occurred.

The Legislative Decree is within the process of law indicated by the Constitution of the Republic and if it is sanctioned by the President of the Republic, its effectiveness will begin 8 days after its publication in the Official Gazette, and then the Ministry of Labor may apply the sanctions approved with the reform.