Employment relationships are governed by general principles that guide the conduct of both the employee and the employer. 

Among these principles, good faith occupies a central role, as it comprehensively governs every action, conduct, function, and obligation arising within the framework of an employment relationship.

Although good faith is not exclusive to labor law, its relevance is expressly recognized under Costa Rican legislation. Article 19 of the Costa Rican Labor Code establishes that an employment contract binds the parties not only to what has been expressly agreed upon, but also to all obligations that may arise therefrom in accordance with good faith, equity, custom, and the law.

Content and Scope of the Principle of Good Faith

From both a doctrinal and case law perspective, it has been consistently held that the employment contract entails an ethical component, allowing the parties to legitimately rely on the expectation that the other will act honestly, loyally, and transparently, refraining from abusive, deceitful, trust-undermining conduct.

This principle translates into an essential element of any employment relationship: trust. Such trust must be preserved not only during the performance of the contract, but also from its inception through its termination.

Good Faith and Reciprocal Obligations

The principle of good faith imposes duties on both parties to the employment relationship, requiring consistent and responsible conduct.

Employee Duties

i. To perform job functions in accordance with the responsibilities inherent to the position and with duly issued lawful instructions.
ii. To maintain loyal and faithful conduct toward the employer.
iii. To refrain from actions or omissions that may mislead the employer regarding the proper fulfillment of employment obligations.

Employer Duties

i. To refrain from exercising managerial powers in an abusive or arbitrary manner.
ii. To apply the disciplinary regime based on criteria of objectivity, proportionality, and reasonableness.
iii. To assess alleged workplace misconduct, considering the specific circumstances of each case, always under the standard of good faith.

In the exercise of disciplinary authority — ranging from a written warning to termination without employer liability — good faith must serve as a determining criterion, both in evaluating the conduct attributed to the employee and in defining the corresponding sanction.

Challenges in the Contemporary Workplace

The evolution of service delivery models, such as telework, together with the intensive use of technological tools, digital monitoring systems, and virtual communication platforms, has significantly transformed traditional workplace dynamics.

In this context, the application of the principle of good faith becomes especially relevant, grounded in:

i. Mutual trust
ii. Honest conduct
iii. Consistent and loyal behavior

These elements are essential to preserving the balance of the employment relationship and promoting sustainable work environments.

Good faith transcends its strict legal nature and becomes an essential standard of conduct in employment relationships. Its proper observance helps prevent disputes, strengthen mutual trust, and ensure a responsible and balanced exercise of labor rights and obligations.

See: Attached document in PDF format.

The content of this newsletter is merely informative, that´s why it cannot be used under any circumstances as advice on the matter described in it. 

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