The Legislative Assembly of Costa Rica gave final approval to Legislative File No. 23.528, an initiative aimed at establishing a clear regulatory framework for remote work performed from abroad. The goal is to provide precise regulations for this work model, avoiding subjective interpretations and offering greater legal certainty for both employers and employees.
The reform introduces amendments to Articles 2 and 10 of Law No. 9738, the Law to Regulate Telework. Among the most notable changes, it explicitly states that remote work can be performed both within Costa Rican territory and from abroad, as long as there is an agreement between the parties and current labor rights are upheld.
Additionally, the new regulation mandates that occupational risks for remote workers abroad must be covered by insurance policies with extraterritorial coverage, in order to ensure protection in case of work-related accidents or illnesses. It also specifies that when a company requests an employee to work remotely from outside the country, it must provide the necessary technology, equipment, and insurance for the proper performance of their duties.
The National Insurance Institute (INS) must extend extraterritorial coverage to companies whose employees are required to perform tasks outside of Costa Rica as part of their operations. This benefit is provided at no additional cost to the company and does not require prior notification of the employee’s travel.
In case of an accident, the employee may seek assistance at the nearest medical facility, while the employer must report the incident using a form with all relevant information.
To ensure compliance with this law, companies are encouraged to review and update their internal remote work policies, making sure employment contracts include specific clauses that govern this modality, both domestically and internationally.
Organizations are also advised to coordinate with their insurance providers to secure policies with extraterritorial coverage and to provide employees with the necessary technological resources to carry out their duties abroad.
