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

A Look Back: Remembering the Costa Rica Fourth of July Picnic in 1965

Fifty-seven years ago in July was simply unforgettable. Sure, I was all of 6 years old, and had only just begun to have my...

What Private Elder Care Really Costs in Costa Rica

Private elder care in Costa Rica can cost far more than many pensions cover, leaving families to bridge a growing gap as the country’s...

Costa Rica Police Warn Drivers Not to Take Cars Onto Beaches

Costa Rica’s Traffic Police are warning drivers not to take cars, motorcycles or ATVs onto the beaches as midyear vacation travel brings more families...

U.S. Flags Costa Rica Overfishing Monitoring Failures

Costa Rica’s reputation as a green leader is facing new pressure after a 2026 U.S. fisheries report identified the country for failing to properly...

Brazil Crashes Out of World Cup After Shock Loss to Norway

Brazil’s World Cup is over after a stunning 2-1 loss to Norway in the round of 16, a result that sends one of Latin...

Costa Rica Approves Limón Cruise Terminal and Marina Project

President Laura Fernández signed a law on Thursday that clears the path for a marina and dedicated cruise terminal in Puerto Limón, a long-delayed...

Costa Rica Bill Could Make Some Small Loans More Expensive

A government-backed bill moving through Costa Rica’s Legislative Assembly could make some small consumer loans more expensive by shifting them into a category that...

Costa Rica Confirms Chikungunya Outbreak in Guanacaste Beach Town

Costa Rica has confirmed a chikungunya outbreak in Playa Langosta, a popular beach community near Tamarindo, after health officials identified four confirmed cases and...

What an Overnight Layover in Panama Really Feels Like

Tocumen International Airport in Panama. My last stop before home. There was an eight-hour layover. A hotel hardly seemed worth it. I had a...
🌴 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