Working Hours and Payment in Kind: Updated Guidelines
In a ruling handed down in mid-2025, the Second Chamber consolidated important criteria regarding exceptional working hours, non-wage compensation and remuneration in kind, analysing the limits of the ‘trust-based working hours’ regime (Article 143 of the Labour Code) and the distinction between operational compensation and the wage component.
Regarding the ‘trust-based working hours’ regime, the Chamber reiterated that flexible working hours do not remove the need to demonstrate that working hours exceeded the legal limits. It is incumbent upon the employee to prove that their working hours habitually exceeded the twelve hours permitted under the exceptional regime.
The Court assessed factors such as the absence of immediate supervision, the ability to organise one’s own schedule autonomously, and the flexibility to adjust working hours according to operational needs, thereby confirming the valid application of the exceptional working hours regime.
With regard to remuneration in kind, the ruling reiterates that not every sum paid to an employee constitutes remuneration. Certain forms of compensation may simply be mechanisms for reimbursement or operational tools for carrying out the contracted work, as was the case here, where it was established that the payment for the use of a vehicle was supported by a hire agreement.
Only benefits that are genuinely remunerative, granted as direct consideration for work and intended for the employee’s personal use, may be considered remuneration in kind. Where the benefit serves the organisation’s operational needs, it does not constitute a component of remuneration.
Recommendation: Ensure you properly document your remuneration policies, arrangements for exceptional working hours and reimbursement mechanisms. Make a clear distinction between salary components and compensatory payments, retaining documentary evidence that demonstrates the operational purpose of the benefits granted.
See the ruling at: https://nexuspj.poder-judicial.go.cr/document/sen-1-0034-1335034