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ARTICLE · 07 MAY 2014

Business Shutdown And Mass Layoffs

The operational shutdown of a company entails a number of difficult decisions.

Costa RicaEmployment and HR

The operational shutdown of a company entails a number of difficult decisions.  However, there is no doubt that laying off personnel is one of the decisions with the strongest impact.  In times when Costa Rica is in shock with the news of several companies that have decided to close their Costa Rican operations, it is logical to raise the question of what obligations and rights arise for both parties of the employment relationship.

In case of mass layoffs, employers should first prepare an appropriate communication plan to inform employees about all the operational and legal details of this decision that may directly affect employees and their families.  In this connection, it is important to be clear about the workforce that will be affected and the dates when the operational shutdown will finally occur, since employees are entitled to be aware of said information in order to start looking for new employment options.

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