Sep 21, 2026
By Kimberly Esquivel, Attorney at Law
Labor Practice | EAS LATAM Group
When an employment relationship ends, one of the most common questions is when final employment benefits must be paid. Although many companies assume the law establishes a fixed deadline, the Labor Code does not expressly specify a number of days. This gap has led to administrative interpretations, business practices, and, more recently, a legislative proposal intended to establish a clear limit.
The Starting Point: No Express Statutory Deadline
The Ministry of Labor and Social Security (MTSS) has consistently taken the position that the obligation arises when the employment relationship ends. In other words, the question is not “how many days does the law give me?” Companies should instead make every effort to calculate and pay the amounts due promptly. An unjustified delay can lead to claims and disputes that advance preparation could have prevented.
For employers, the practical takeaway is clear: the fact that the Code does not specify a number of days does not mean payment may be postponed indefinitely. The recommended approach is to promptly calculate, document, and pay all applicable amounts, such as unpaid wages, accrued vacation, the statutory annual bonus, notice pay, and severance, as applicable.
When the relationship between the parties has not been properly defined, a later reclassification may trigger obligations for vacation pay, the statutory annual bonus, notice pay, and severance.
Ending an employment relationship: timely calculations and documentation reduce exposure.
What Would Bill No. 25.113 Change?
Bill No. 25.113 proposes adding Article 30 bis to the Labor Code. Its purpose is to require payment of final employment benefits no later than eight days after the employment relationship ends. As of September 2026, the bill remains under consideration and is on the agenda of the Standing Committee on Legal Affairs; it is therefore not yet a current legal requirement.
The bill seeks to close the existing gap and provide greater legal certainty for both employees and employers. For EAS, this topic can also be connected to other significant labor developments and proposals, allowing readers to follow legislative changes within the firm’s content platform. It is important to emphasize that the eight-day period is, for now, only a legislative proposal. Until it is enacted and published as law, the bill’s language must be clearly distinguished from the MTSS’s current position.
Can the Parties Agree on a Deadline or Use Mediation?
The guidance compiled by the MTSS recognizes that an employer and employee may voluntarily agree on a reasonable period for completing the final settlement. The key is that the arrangement must reflect a genuine agreement between the parties rather than an imposition. Because labor rights cannot be waived, any deferred or installment-payment arrangement should be handled with particular care and properly documented.
If the parties disagree about the amounts or the terms of the separation, the MTSS offers free labor conciliation services as a tool for preventing disputes. According to the Ministry, an agreement reached through conciliation has the same effect as a court judgment and may be enforced directly in court if either party fails to comply.
Practical Recommendations for Employers
Regardless of the bill’s ultimate outcome, a company can reduce its employment-related exposure through a simple, orderly, and consistent internal process:
Begin preparing the final-benefits calculation as soon as the separation date is known.
Clearly itemize each component and retain support for the calculation.
Provide proof of payment and retain evidence of the payment date.
Document any exceptional agreement clearly and ensure it is voluntary.
}Escalate the matter to conciliation when a genuine disagreement cannot be resolved internally.
Review special circumstances, including vacation, commissions, work schedules, medical leave, notice, and contractual benefits.
Prevention depends on more than understanding the law. Organized records, clear timelines, and consistent administration help reduce disputes and facilitate conciliation if needed. This area also connects directly with labor advisory, payroll management, and corporate compliance services.
The Labor Code still does not expressly establish a numerical deadline for paying final employment benefits. The MTSS interprets the obligation as arising when the employment relationship ends, while Bill No. 25.113 would establish a maximum period of eight days thereafter. Until an amendment is enacted, best practice remains to calculate amounts promptly, document them properly, and avoid unjustified delays.
Bibliography
Ministry of Labor and Social Security. Labor matters: severance and final employment benefits. View source.
Ministry of Labor and Social Security. Compendium of Labor Law Criteria 2014–2018, section “Deadline for Payment.” View source.
Ministry of Labor and Social Security. Conciliation, calculation of employment benefits, and labor advisory services. View source.
Office of the Attorney General / SINALEVI. Opinion on Bill No. 25.113. View source.
Legislative Assembly of Costa Rica. Bill No. 25.113. View source.