The Dominican Republic is a Caribbean nation which shares the island of Hispaniola with Haiti. Its many beaches and hotels make it a popular holiday destination attracting many tourists from all over the world. Punta Cana, a region on the eastern part of the country, has many beautiful beaches, resorts, and golf courses. The main language spoken in the country is Spanish but with various regional dialects also in use, such as Dominican Spanish. The Dominican Republic has a diverse culture with a rich history. Dominicans place high value on social etiquette and their public image as a way to project their confidence and place in society. The people are friendly, polite and highly respectful to visitors, while going out of their way to cater to the needs of non-locals.
Permanent contracts (contracts for an indefinite period) are recognized under the Labor Code of the Dominican Republic. All employment contracts are presumed to be held for an indefinite period of time, unless a fixed period is agreed in writing. When an employee is hired for work of permanent nature, a contract for an indefinite period is concluded. However, this is not a guarantee that the employer will use the employee's services for a certain period.
Agreements of an employee who works with the same employer successively, in more than one type of work, are considered to be contracts for an indefinite period.
Although the Labor Code of the Dominican Republic recognizes both verbal and written contracts, it is recommended that an employment contract is concluded in writing. Either party may demand from the other that the employment contract concluded verbally be formalized in writing. If a written agreement is concluded, any amendment must also be done in writing. Written contracts must be signed by both parties and made in 4 originals, 1 for each party and the other 2 sent by the employer to the Department of Labor. Written contracts are always required for fixed-term or project-based contracts to ensure validity and avoid classification as indefinite.
Written contracts must include the following:
Name, surname, sex, age, nationality, domicile, and residence of the contracting parties
Type and hours of work
The place of work
The type of contract
Wage and form, time, and place of payment
Other particulars agreed between the parties.
The signatures of the parties and witnesses (if witnesses are necessary)
The Labor Code of the Dominican Republic does not differentiate between fixed-term and temporary contracts. However, contracts for temporary increases in production or accidental business circumstances terminate automatically if the job lasts under 3 months. Beyond 3 months, severance pay applies upon termination. These types of temporary agreements must be in writing. When an employee continues to provide service to the employer after the termination date of such a contract, it becomes a contract for an indefinite period.
The Labor Code does not specify regulations related to employee probationary periods. However, employees terminated without cause are entitled to severance payments and prior notice only after 3 months of continuous service.
The labor law of the Dominican Republic generally stipulates that regular working hours may not exceed 8 hours per day and 44 hours per week. Employees in executive and managerial positions are exempt from these working hour requirements and may work up to 10 hours a day.
Daytime work hours are between 7:00 a.m. to 9:00 p.m., while nighttime work hours are between 9:00 p.m. and 7:00 a.m. A work shift is considered a daytime shift as long as the employee works no more than three hours between 9:00 p.m. and 7:00 a.m. (if work during this timeframe exceeds three hours, it is considered a night shift).
Every worker has the right to an uninterrupted weekly rest of 36 hours, which is conventionally taken from noon on Saturday. This rest period can, however, be agreed between the parties and can start any day of the week.
According to the Dominican Labor Code, employees are entitled to 14 days of paid leave every year after the first year of service. After 5 years in the company, employees’ annual leave increases to 18 days.
Employers must fix and distribute the vacation periods of their workers during the first 15 days of January. The salary for the vacation period must be paid to the employee on the day prior to the beginning of the vacation. During vacation, the employee is not allowed to provide any paid or unpaid service to the employer.
Employers cannot offer to compensate the employee in exchange for vacation days, except for cases of termination when the employee has not used the vacation they were entitled to.
There is no dedicated leave provision concerning ordinary illness in the Dominican Labor Code. Instead, the Code provides that an employment contract may be suspended due to an ordinary illness that is contagious or renders the employee unable to work. During this suspension, the employee can benefit from sickness allowance paid by Social Security if the employee has made contributions during the last 12 months before the illness began. The allowance is paid from the fourth day of illness up to 26 weeks. If the patient is hospitalized, the amount is 40% of the employee's average salary from the last 6 months and 60% of said salary for outpatient care.
To benefit from Social Security sickness allowance, the employee must inform the employer, who will then submit an electronic form to the Unified Information and Collection System ("SUIR") that the treating physician completed and signed. For short-term illness that lasts less than 3 days, the employee may take unpaid leave or use any available annual leave.
Domestic workers are entitled to fully paid leave until complete recovery if they contract a disease from one of the members of the family to whom they provide services.
Mothers are entitled to a total of 14 weeks of paid maternity leave: 7 weeks of prenatal leave and 7 weeks of post-natal leave. If the employee is unable to use all 7 weeks of prenatal leave, the remaining time will accumulate to the post-natal leave period. Employees are entitled to receive their taxable salary during maternity leave. Employees who qualify to receive maternity benefits from the Institute of Social Security will receive 14 weeks of their taxable salary during their maternity leave. This subsidy can begin as early as 22 weeks of gestation, but typically starts 7 weeks before the expected due date or the actual date of birth (whichever is earlier).
The law prohibits employers from terminating pregnant employees without cause. This prohibition extends 3 months after the date of delivery.
In the Dominican Republic, employers are required to grant employees two days of paid leave when their wife or partner gives birth.
The labor law of the Dominican Republic allows at-will termination, where either party may unilaterally terminate an employment contract without cause. The terminating party must give 7, 14, or 28 days' notice of termination if the employee's service length is at least 3, 6, or 12 months, respectively. Employers who terminate an employee without cause must also make severance payments.
The Labor Code lists 19 acceptable reasons for an employer to terminate an employee for cause, including misleading an employer in job applications and committing a dishonest act in the workplace. Employers need not give notice to an employee dismissed for cause. However, employers must report the dismissal and its cause to the worker and the Labor Department's local authorities within 48 hours. The right of an employer to base the dismissal on a specific reason for termination expires 15 days after the employee has committed the act considered as grounds for termination.
In the Dominican Republic, severance payment is offered in cases of dismissal without cause. The amount varies as follows:
6 days' salary for service between 3 and 6 months
13 days' salary for service between 6 months and 1 year
21 days' salary for service between 1 and 5 years
23 days' salary per year of service for service over 5 years
Any fraction of a year of service, greater than 3 months, must be paid out in severance in accordance with the first 2 bullets above.
Severance benefits are exempt from taxes, and any amounts owed by the employer to the former employee must be paid within 10 days of the termination. Non-compliance entails a penalty of 1 day's wage for every day of delay.
