Employment relationships versus professional services: the Court reinforces the criteria for distinguishing between them

The ruling consolidates lines of case law applicable to so-called ‘borderline cases’, which are becoming increasingly common in business models with flexible working arrangements.

The ruling reiterates that the classification of a relationship does not depend on the name given to the contract, but on the practical reality. Legal subordination remains the key factor in distinguishing an employee from a self-employed contractor.

Among the factors assessed by the Court are: the existence of working hours, levels of control and supervision, integration into the business structure, exclusivity, economic dependence, the use of corporate tools, and the assumption of risks inherent to the activity.

What does this mean for your company?

If you engage consultants, freelancers or external specialists under flexible arrangements, this ruling serves as a reminder that such arrangements could be reclassified as employment relationships if, in practice, there are clear indications of subordination or organisational integration.

We recommend periodically reviewing the contracting structures and supervision mechanisms applicable to independent contractors, particularly where operational dynamics may blur the line between professional autonomy and employment dependency.

See the resolution at: https://nexuspj.poder-judicial.go.cr/document/sen-1-0034-1364159