Hiring irregular migrant workers in Costa Rica legal risks

The Hidden Cost of Hiring Irregular Migrant Workers in Costa Rica

Apr 22, 2026 | Blog Eng, Costa Rica Eng, Labor Law

Hiring irregular migrant workers in Costa Rica may seem like a quick operational fix, but in reality it can lead to sanctions, labor claims, operational disruption, and reputational damage.

What employers should consider before hiring foreign personnel

In recent weeks, Costa Rica has seen how the Migration authorities, together with the Ministry of Labor and the Public Force, have carried out operations in tourist areas and targeting companies that have historically been known for hiring foreign labor that does not have the proper documentation to legally work in Costa Rica.

Sometimes, the problem does not begin with a fine or an inspection, but rather with something much more everyday: the urgency to fill a vacancy, respond to a peak in workload, or find someone who is “a little cheaper.”

In that context, many companies—without fully understanding the consequences—make a decision that can seriously complicate their operations: hiring a foreign individual without verifying whether they are in a regular migratory status and authorized to work in Costa Rica.

Legal risks of hiring irregular migrant workers in Costa Rica

In Costa Rica, hiring a foreign person without regular migratory status or without a work permit is not only prohibited: it also exposes the employer to Migration authorities, the Ministry of Labor, the Costa Rican Social Security Fund, and eventually the courts. What seemed like a quick solution to an operational need can turn into a costly combination of sanctions, labor claims, operational disruptions, and reputational damage.

The legislation is clear. The General Law on Migration and Immigration prohibits hiring foreign individuals who are in an irregular condition or who, even if legally present in the country, do not have authorization to perform the work for which they were hired. Additionally, it establishes an active obligation for the employer: to verify the migratory status and require the document that proves the individual is authorized to work. In other words, the responsibility to verify lies directly with the company.

The risk does not only exist when the person is in an irregular condition; it also applies when the individual has a valid migratory status, but that status does not allow them to work. It is not just about having documents, but about those documents specifically authorizing the position to be performed.

Inspections and enforcement are already happening

This issue stops being theoretical when one observes what is happening in practice. Authorities have intensified joint operations in workplaces, especially in sectors where there has historically been a higher hiring of foreign labor. In these inspections, they do not only review the workers; they also assess how diligent the employer was and whether it can demonstrate that it carried out the corresponding verifications.

It is no longer a remote possibility. It is real enforcement that is already affecting a significant number of employers and business owners.

And when an inspection occurs, the impact rarely ends with a fine. The real cost is usually felt in the operation: immediate loss of personnel, shift disruptions, delivery delays, breaches, and impact on customer service. All stemming from a decision that, in many cases, could have been avoided with a prior review.

Immigration sanctions do not eliminate labor obligations

Of course, the law provides for economic sanctions, which may increase depending on the severity of the case and the number of individuals involved. But there is something even more relevant: a migratory violation does not eliminate labor obligations. On the contrary, it keeps them fully intact.

This is one of the most misunderstood points. Some companies assume that if a person does not have regular migratory status, they cannot claim labor rights, when the reality is different.

In Costa Rica, if there was subordination, working hours, salary, and effective provision of services, a labor claim may still arise. This means that the employer could face, at the same time, a migratory sanction and claims for wages, vacation, Christmas bonus, overtime, notice period, severance, or differences related to social security.

Compliance should be part of the hiring strategy

For this reason, hiring foreign personnel must be handled as a compliance matter, not as an improvised solution to staffing needs. The question is not whether the person is “urgent” or whether they “seem to be in order.” The question is whether the company can demonstrate that it carried out the necessary verifications.

It is also important not to overlook the reputational component. In an environment where companies increasingly speak about ethics, compliance, and social responsibility, maintaining personnel in an irregular migratory condition is not only a legal issue, but also a matter of consistency. It does not reflect well before clients, investors, or strategic partners. And if it is combined with labor or social security non-compliance, the reputational impact may be harder to repair than any fine.

Hiring correctly protects the operation

Hiring foreign individuals in Costa Rica is not the problem. For many industries, it is a real necessity. The risk arises when it is done without order, without verification, and without strategy. Migrant labor can bring significant value. But it must be incorporated correctly: with proper documentation, traceability, and compliance. Because doing it incorrectly does not make the operation cheaper—it makes it more fragile, more costly, and more exposed.

How GLC Legal can help

GLC Legal supports companies in their corporate and labor challenges. We can assist with preventive payroll reviews involving foreign personnel, migration-labor compliance audits, document regularization, design of hiring protocols, and support during inspections or contingencies.