No menu items!

COSTA RICA'S LEADING ENGLISH LANGUAGE NEWSPAPER

HomeCosta RicaCosta Rican Court Orders Uber to Pay Millions in Driver Benefits

Costa Rican Court Orders Uber to Pay Millions in Driver Benefits

Costa Rican courts have dealt another blow to Uber, ruling that the ride-hailing company must treat drivers as employees rather than independent contractors. In a decision in September, a labor court in San José found an employment link between Uber and a driver who worked from 2018 to 2024. The court ordered Uber to pay more than ₡14 million in back wages, severance, vacation time, bonuses, and other benefits, plus ₡2.8 million in legal fees.

The driver argued his disconnection from the app equaled an unfair firing without proper notice. He pushed for a settlement during the trial, but Uber refused. He also asked for six months of lost income and damages. To secure payment, he and his attorney requested a freeze on Uber’s assets and accounts in case the company tries to dodge the bill.

This follows a similar case last month where an appeals court upheld a ruling against Uber. That involved a driver active from October 2019 to February 2023, cut off without reason. The court pointed to Uber’s control over drivers through app rules, penalties, and trip assignments as proof of an employer-employee setup. Uber now owes that driver around â‚¡10 million for similar claims, with potential asset seizures if unpaid.

These cases highlight how Uber directs drivers’ work, from setting fares and routes to enforcing ratings and behavior standards. Drivers must follow company guidelines or face suspension, showing clear oversight. In Costa Rica, labor laws require employers to cover social security, holidays, and end-of-year bonuses, which Uber had avoided by classifying drivers as partners.

For those relying on Uber here, these rulings could mean changes in service. Drivers might gain better protections, but fares or availability could shift as Uber adjusts. The company has said it follows court orders in the past, though it appealed the latest decision. The higher labor court will review that appeal soon.

Other drivers have started similar claims after these wins. One former driver shared how his sudden app ban left him without work overnight, forcing a switch to another platform. He kept records of trips and earnings, which helped prove his case. Legal experts note that detailed logs strengthen these suits.

Uber marked 10 years in Costa Rica this August, amid ongoing debates about its model. The government has discussed regulations for ride apps, but no major laws have passed yet. Taxi unions and lawmakers have long criticized Uber for undercutting traditional services without matching labor standards.

If you’re driving for Uber or using the app while traveling, watch for updates. These decisions set examples that could spread to other gig jobs in the country.

Trending Now

Costa Rica’s president says US ground operations would benefit national security

President Laura Fernández said US ground operations on Costa Rican soil would be good for national security if they pursued shared targets, while stressing...

Costa Rica Supreme Court Considers Changes After Judicial Corruption Cases

Costa Rica’s Supreme Court has ordered a review of the rules judges use to determine whether suspects remain in jail or are released under restrictions as organized crime and corruption cases put new pressure on the justice system

Costa Rica Vehicle Thefts Hit a Ten-Year High

If you own a car here, it is more likely to be stolen now than at any point in the past ten years. Costa...

Costa Rica’s Pacific Waters Reach Unusually High Temperatures

Ocean temperatures along Costa Rica’s Pacific coast are running unusually high, with researchers recording water up to 2°C (3.6°F) warmer than normal in some...

Watch Spider Monkeys Return to Costa Rica’s Nicoya Peninsula

A camera trap project on Costa Rica’s Nicoya Peninsula produced an unexpected discovery: Central American spider monkeys living wild in an area where the species had once disappeared.

Two Detained With 125 Sea Turtle Eggs During Costa Rica’s Ostional Arribada

Authorities detained two people carrying 125 olive ridley sea turtle eggs during the September arribada at Ostional, where only authorized community members may legally collect eggs.

Costa Rica Renews Push to Make Chirripó Its First UNESCO Global Geopark

Costa Rica and the State Distance University are renewing an effort to have Chirripó recognized as Costa Rica's first UNESCO Global Geopark, a designation...

What a Costa Rican migratory alert actually does

A judicial notice served on live television this week put an obscure piece of legal machinery in front of all of Costa Rica. Most...

Costa Rica Tourism Drivers Protest Possible Airport Access for Ride-Hailing Apps

Tourism transportation operators plan to demonstrate outside Casa Presidencial tomorrow over a possible change to legislation that could allow Uber-type ride-hailing services to operate...
🌴 The Weekly Pura Vida

Costa Rica, Once a Week

The week's top stories, weather & insider tips — delivered every Sunday. One email, zero clutter.

🔒 Free. No spam. Unsubscribe anytime.

Loading…

Latest News from Costa Rica

Costa Rica Coffee Maker Chorreador
Costa Rica Car Rentals
Costa Rica Travel Insurance
Costa Rica Travel