Preventive labor compliance: what your company should have ready before a MTSS inspection

By: Kimberly Esquivel, Esq.

Labor Management Manager – EAS LATAM

When a company thinks about labor compliance, it usually thinks about payroll, salaries, social security contributions, vacations, and holidays. All of this is important, but today it's not enough.

In an inspection by the Ministry of Labor and Social Security (MTSS), the company must also be able to demonstrate that it has internal policies, clear procedures, evidence of disclosure to staff, and preventive mechanisms to protect the work environment.

Simply put: workplace compliance is not only paid for; it is also documented.

What does a labor inspection check?

A visit from the Ministry of Labor and Social Security (MTSS) can encompass more than just numbers:

Issue	What should the company be able to demonstrate?
Sexual harassment	Internal policy, complaint procedure, investigative committee and evidence of disclosure.
Dignified treatment	Clear rules to prevent mistreatment, offensive language, or disrespectful behavior.
Occupational health	Formal commission, communication, work program and annual report.
Holidays and working days	Attendance controls, correct payments, and payroll backups.

Since when do these obligations apply?

Not all of them depend on the size of the company:

Obligation	Since when does it apply?	What should exist?
Sexual harassment	Since there have been working people	Policy, whistleblowing channel, procedure, commission, and evidence.
Dignified treatment	In every employment relationship	Guidelines for management and proper conflict management.
Occupational health	From 10 collaborators	Commission, work program and annual report.

In occupational health:

• From 10 to 50 people: minimum 2 members.

• More than 50 people: minimum 4 members.

Sexual harassment: having a policy is not enough

The company must have a policy in place before any situation occurs, and also be able to demonstrate that the staff are aware of it.

Element	What is it for?
Express prohibition	Make it clear that it is not tolerated.
Whistleblowing channel	Indicate how to report situations.
Internal procedure	Explain how cases are investigated.
Confidentiality	Protect the people involved.
Investigating committee	Attend to and process complaints.
Sanctions	Define consequences according to severity.
Divulgation	Verify that staff are aware of the policy.

The key point is evidence. Without proof of disclosure, the policy loses its value in the event of an inspection.

Dignified treatment: a frequent risk

Many labor disputes do not stem from the root of the problem, but from the way they are managed.

Common risks	Good practices
Shouting or threats	Correct in private.
Offensive language	Respectful communication.
Public display	Document properly.

Managers must be trained in conflict management and communication.

Occupational health: more than just meeting a requirement

Having workers' compensation insurance is necessary, but not sufficient.

If the workplace has 10 or more people:

Requirement	Expected evidence
Commission formed	Integration Act.
Communication	Mailings, circulars or notices.
Work program	Annual activity plan.
Annual report	Summary of actions taken.
Follow-up	Minutes or records of meetings.

The important thing is not just to create the commission, but to demonstrate that it works.

Checklist of the month

Before the month ends, it's worth checking:

Ask	Expected response
Do we have a policy against sexual harassment?	Yes, updated.
Does the staff know her?	Yes, with evidence.
Is there an investigative committee?	Yes, appointed and trained.
Do we have an occupational health committee?	Yes, if applicable.
Is there a program and an annual report?	Yes, documented.
Do we have evidence?	Yes: minutes, emails, and backups.

Labor compliance can no longer be viewed solely as payroll and payments. It also includes prevention, fair treatment, occupational health, and documentation. Companies that address these issues before an inspection reduce risks, better protect their staff, and have greater clarity in responding to conflicts. In labor matters, prevention remains cheaper than correcting under pressure.

References

Costa Rica Labor Code.

Law No. 7476, Law against Sexual Harassment in Employment and Education, as amended.

Executive Decree No. 39408-MTSS, Regulations on Committees, Offices and Departments of Occupational Health.

Common criteria and requirements for MTSS inspection regarding respectful treatment, sexual harassment and occupational health.