Hiring local staff through an Employer of Record (EOR) in Costa Rica is the most suitable alternative for companies with a limited-scale or short-term operation. It is also a good choice for organizations looking to get to know the Costa Rican market before making a greater commercial commitment to the Central American country.
Costa Rica has shown steady economic growth over the past 25 years and is considered a middle-income nation with a gross domestic product (GDP) of $61.77 billion (USD) in 2019. Moreover, in May 2020 the country was accepted into the Organisation for Economic Cooperation and Development (OECD), having adjusted its public policies and to meet OECD standards.
Furthermore, Costa Rica maintains free trade agreements (FTAs) with multiple individual countries, as well as the European Union and the Caribbean Community (CARICOM).
If you are looking into starting a business in Costa Rica, or otherwise entering the market, read on to understand how an EOR in Costa Rica could support your human resources (HR) operations and help you on your first steps into this Central American market.
Do you need an EOR in Costa Rica?
If you choose to hire staff through an EOR in Costa Rica you will not have to formally establish a company in the country because the EOR in Costa Rica will be in charge of recruiting, hiring, and firing local staff on your behalf.
An EOR is equipped to manage the monthly payroll of employees, as well as to grant leave related to vacation, maternity leave, and disability leave. Some of the main functions of an EOR in Costa Rica include:
- Creation of contract for each type of employee
- Hiring process management
- Calculation of salaries for each type of employee
- Registration of holidays, medical leave, overtime, and bonuses
- Calculation of settlement and payment of compensation
- Continuous counseling in all the mentioned areas in your chosen language
What are the advantages of working with an EOR?
There are multiple advantages of working with an EOR in Costa Rica to hire local staff, such as:
Recruitment: An EOR will be able to hire the most suitable and qualified employees for your company, as it has a specialized recruitment team with experience in the local market.
Profitability: Working with an EOR reduces administrative burdens and saves you from incurring unnecessary expenses.
Compliance: With extensive knowledge of the local market, an EOR in Costa Rica will ensure your business remains in good standing with local authorities.
Migration duties: An EOR in Costa Rica will supervise any working visas or residency permits for foreign employees.
Legal representation: Any claim related to the employees and HR practices will be directed to the EOR. It will represent your company and resolve legal issues that can put your business at risk and reduce the profitability of your operations in Costa Rica.
Biz Latin Hub could be your EOR in Costa Rica
At Biz Latin Hub, our team of multilingual specialists is equipped to deliver excellence and help you recruit the most suitable employees to ensure the success of your commercial operations in Costa Rica. With our full suite of EOR and other back-office services, we are your single point of contact to incorporate your business in Latin America and the Caribbean.
Reach out to us now to receive personalized assistance.
Learn more about our team and expert authors.