Executive compensation and employee benefits—Costa Rica—Q&A guide

The following Share Incentives practice note provides comprehensive and up to date legal information covering:

  • Executive compensation and employee benefits—Costa Rica—Q&A guide
  • 1. Provide an overview of the primary sources of law, regulation and practice that govern or affect executive compensation arrangements or employee benefits.
  • 2. What are the primary government agencies or other entities responsible for enforcing these rules?
  • 3. Are any types of compensation or benefits generally subject to specific corporate governance requirements or approval by shareholders or government agencies? What is the general process for obtaining approval?
  • 4. Under what circumstances does the establishment or change of an executive compensation or benefit arrangement generally require consultation with a union, works council or similar body?
  • 5. Are any types of compensation or benefit arrangements prohibited either generally or with respect to senior management?
  • 6. What rules apply to compensation and benefits of non-executive directors?
  • 7. Must any aspects of an executive’s compensation be publicly disclosed or disclosed to the government? How?
  • 8. Are employment agreements required or prevalent? If so, what provisions are common? Are any terms prohibited or unenforceable?
  • 9. What are the prevalent types and structures of incentive compensation? Do they vary by level or type of organisation?
  • More...

Executive compensation and employee benefits—Costa Rica—Q&A guide

This Practice Note contains a jurisdiction-specific Q&A guide to executive compensation and employee benefits in Costa Rica published as part of the Lexology Getting the Deal Through series by Law Business Research (published: November 2020).

Authors: Bufete Godínez y Asociados—Alexander Godínez Vargas

1. Provide an overview of the primary sources of law, regulation and practice that govern or affect executive compensation arrangements or employee benefits.

The legal framework by which compensation agreements for executives and benefits for employees are regulated comprises the following standards:

  1. the Political Constitution of 7 November 1949 (CPol);

  2. the Labour Code, Law No. 2 of 15 September 1943 (CT);

  3. Law No. 17 of 22 October 1943, Constitutive of the Costa Rican Social Security Fund (LCS);

  4. Law No. 832 of 4 November 1949, on Minimum Wages and the creation of the National Salary Council (LSM);

  5. Law No. 2412 of 23 October 1959, of Aguinaldo to servers of the Private Enterprise (LAG);

  6. Law No. 7092 of 21 April 1988, on Income Tax (LIR);

  7. Law No. 7727 of 9 December 1997, on Alternative Resolution of Conflicts and Promotion of Social Peace (RAC);

  8. Law No. 7983 of 16 February 2000, on Worker Protection (LPT);

  9. Law No. 8682 of 12 November, 2008, on Promotion of the School Salary in the Private Sector (LSE);

  10. the Regulation of the Health Insurance of the Costa

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