Dominican Republic HR Information

Updated on: 2025/08/04 14:03 (UTC)

Overview

Employment in the Dominican Republic is governed largely by the Código de Trabajo (Labor Code), which applies to both Dominicans and foreign workers. All provisions in employment contracts must conform to the Labor Code, which is known for its strong protection of the rights of employees. It is unlawful for employees to waive any rights that would lessen their benefits under the Labor Code.

Hiring

Employment Contracts

The Labor Code does not require the parties to enter into a formal employment contract, but the existence of an employment contract is presumed in any work relationship unless there is proof to the contrary.

There is no requirement that an employment contract be in writing, but a party to an oral employment agreement has the right to require that the contract be formalized in writing. If an employment contract is in writing, any modifications to the contract also must be in writing.

A written employment agreement must include:

• the employee’s name, nationality, age, sex, marital status, domicile and place of hiring;
• legal notice of the employee’s identity card;
• the service the employee agrees to provide;
• the hours and place of employment;
• the employee’s rate of pay (including an indication of what the employee earns per unit of time, unit of work or otherwise);
• the form, time and place of payment and
• whether the contract is for a fixed or indefinite period of time.

Two copies of each written employment contract must be forwarded within three days to the Ministry of Labor or appropriate local authority for registration and filing.

Rights granted by law to employees may not be waived or limited by contract and any agreement to the contrary is void.

Fixed-term contracts are permitted only in the following situations:

• to provide a service or perform work which in its nature is of limited duration,
• to substitute for an employee on leave or vacation or absent due to temporary impairment and
• if the fixed-term contract furthers the interests of the employee.

While the Labor Code does not explicitly establish a probationary period, it does specify that employees have no right to prior notice or severance unless they have been employed for at least three months. In addition, inefficiency and inability as just cause for dismissal expires after three months’ employment.

Restrictions on Hiring

At least 80 percent of an employer’s workforce must consist of Dominicans, excluding management and technical workers (but only if no Dominican employees with the requisite technical skills are available). The salaries of the Dominican employees must comprise at least 80 percent of the total payroll, excluding wages earned by employees who perform technical or managerial work. For employers with fewer than 10 employees, special rules apply.

Foreign employees are exempted from the employee nationality requirement if:

• they have been married to Dominicans for more than two years and have lived continuously in the country for more than three years or
• they have fathered Dominican children and have lived continuously in the country for more than five years.

The Labor Code establishes a preference, but not a requirement, that management consist of Dominican nationals.

Persons who are 16 years or older and any emancipated minors are entitled to enter into an employment contract. Unemancipated minors who are 14 or 15 may enter into an employment contract with permission of a parent or guardian.

Minors under 16 years old may not work at night except in the family business, may not work more than six hours per day and may not perform dangerous or unhealthy work as identified by the Secretary of Labor. Minors under age 16 also may not work as messengers or as dispensers of alcoholic beverages.

In the interests of art, science or education, the secretary of labor, by means of individual permits, may authorize children under 14 years of age to work in public performances, radio, television or films as actors or extras.

Recordkeeping

Within three days of hiring, the employer must register a new employee with Tesorería Nacional de la Seguridad Social (TNSS), which is part of the main social security office, the Consejo Nacional de Seguridad Social (CNSS). Within a week of hiring a new employee, the employer must register the employment by filing certain forms with the Department of Labor. A list of permanent staff, work schedules and leave provisions must also be on file.

The employer must keep records in accordance with models approved by the Ministry of Labor of each employee’s:

• age,
• sex,
• working hours,
• work stoppages and their causes,
• overtime hours worked and
• compensation due.

The employer also must keep a vacation logbook documenting each employee’s accrued leave, the date on which each employee takes annual leave and the vacation pay received by each employee.

Background Checks

Employees must undergo a medical examination if the employer requests it for the purpose of ensuring that the employee does not suffer a disability or communicable disease that would make it impossible to perform the job.

Noncompetition Agreements

Although the Labor Code does not specifically address noncompetition agreements, employees are barred from disclosing an employer’s trade secrets both during the term of employment and after termination of employment.

Reference Citations

Employment Contracts: Labor Code, August 2007, arts. 24, 31-33, 76-80, 88 (Spanish)

Restrictions on Hiring: Labor Code, August 2007, arts. 135-137, 246 (Spanish)

Recordkeeping: Labor Code, August 2007, art. 189 (Spanish)

Background Checks: Labor Code, August 2007, art. 44 (Spanish)

Noncompetition Agreements: Labor Code, August 2007, art. 44 (Spanish)

Immigration and Work Permits

In General

Foreign employers may hire employees directly in the Dominican Republic, but at least 80 percent of their workforce must consist of Dominicans. The Dominican Republic issues business visas for work purposes to those who by the nature of their occupation will remain in the country for a year.

Visas and Work Permits

Foreign employers may hire employees directly in the Dominican Republic. The Foreign Investment Law of 1995 grants foreign investors exactly the same rights and obligations as local investors. However, employers hiring foreign workers must keep in mind that at least 80 percent of their workforce must consist of Dominicans, excluding management and technical workers.

The Dominican Republic issues business visas for work purposes to those who by nature of their occupation will remain in the country for a year. This visa is usually awarded to individuals who are fulfilling fixed-term contracts in public or private companies established in the country and may be renewed for further periods of one year while the employment contract is still valid.

The following documents are required to be submitted when applying for a work visa:

• Completed visa form
• One frontal picture size 2 x 2 inches with a white background
• Passport valid for the duration of the requested visa or longer
• Resolution of the Ministry of Labor. This document, issued by the Labor Department, legitimizes the applicant’s employment contract in the country and specifies the employee’s position within the company, contract length and salary to be received.
• Medical Certificate showing a diagnosis of the overall health of the applicant, indicating if he or she suffers from any contagious disease. It must be issued by the health authorities of the country in which the person resides at the time of application. This document must be notarized, translated into Spanish and both the original and the translation authenticated. Alternatively, once the original document has been authenticated it can be sent for translation by the Consular Section.
• Criminal Record Certificate issued by the appropriate authorities of the country in which the person resides at the time of application. This document must be notarized, translated into Spanish and both the original and the translation authenticated. Alternatively, once the original document has been authenticated it can be sent for translation by the Consular Section. If the applicant has previously resided in the Dominican Republic, that document must be issued by the Attorney General’s Office.
• Legible photocopy of National Identity Document of the country of nationality and legible photocopy of the Residence Card if residing in a second country.
• Legible photocopy of former Dominican visas or residence card (if renewal).
• Visa application letter from the beneficiary or from the company or institution for which the applicant works addressed to the Consular Section containing name, nationality, place of residence and occupation.

The processing time is 10 to 15 days depending on date of travel, prior requests and staff availability.

Reference Citations

Visas and Work Permits: Embassy of the Dominican Republic in the United States

Nondiscrimination

In General

Employers may not discriminate against employees on the basis of age, disability, national or social origin, political opinion, pregnancy, race, religious belief, or sex. The Labor Code and the Constitution specifically guarantee equal pay for equal work and forbid sexual harassment. The Dominican Republic has no laws prohibiting discrimination on the basis of sexual orientation or gender identity.

Disability Discrimination

The Labor Code establishes the right of disabled people to obtain a fixed and permanent occupation. A 1995 decree on equal employment rights for people with physical, mental or sensory disabilities requires the state to guarantee equal opportunities and labor rights for people with disabilities, requires the Ministry of Labor to hold special employment programs for disabled persons and requires the National Training Institute to establish education and vocational training programs for disabled persons.

The 2000 Disability Law states that persons with disabilities have the same rights and obligations as nondisabled persons and established the National Council on Disability to ensure the elimination of all forms of discrimination against people with disabilities and to implement programs aimed at achieving full integration of people with disabilities into society.

Gender Discrimination

Discrimination in employment on the basis of gender is forbidden. The Labor Code provides that women enjoy equal rights and have the same duties as men except for additional protections under law for pregnant employees.

Employers are forbidden from taking any actions against employees that could be considered sexual harassment. Sexual harassment in the workplace is a misdemeanor with a maximum punishment of one year in prison and a 10,000 pesos fine.

The employer may not terminate an employee without cause during pregnancy or during the three months following childbirth and may not terminate a pregnant employee at any time because of her pregnancy. The employee is required to notify the employer of her pregnancy, however, and to specify her expected due date.

To terminate an employee for cause during pregnancy or within six months thereafter, the employer must obtain permission from the Labor Ministry. An employer that fails to do so must pay the employee, in addition to any other benefits under the Labor Code, compensation equivalent to five months of regular salary.

The employer also may not require a pregnant employee to perform work that requires physical effort incompatible with pregnancy. If, as a result of pregnancy or childbirth, an employee’s work is dangerous for her health or that of her child, as demonstrated by a certificate issued by her physician, the employer must allow the worker to change jobs. If it is impossible to change jobs, the employee is entitled to take leave without pay, in addition to her paid maternity leave.

Reference Citations

Nondiscrimination: Labor Code, August 2007, Principle VII (Spanish)

Disability Discrimination: General Law on Disability, 2000 (Spanish)

Gender Discrimination: Labor Code, August 2007, arts. 47, 231 (Spanish)

Employee Privacy

Employee Data

There are no laws addressing employee privacy in the Dominican Republic. The Constitution protects the right to privacy of personal data in public or private records.

Employee Monitoring and Surveillance

There are no laws addressing employee monitoring and surveillance in the Dominican Republic.

Reference Citations

Employee Data: Dominican Constitution

Compensation

Hours of Work

Normal working hours may not exceed eight a day and 44 a week.

Employees are entitled to a one-hour break after four consecutive hours of work and a 1.5-hour break after five consecutive hours of work.

The weekly work shifts normally end on Saturdays at noon, giving the employee 36 hours of uninterrupted rest. Any other arrangement must provide the same minimum uninterrupted rest period of 36 hours. The rest period may start on any day of the week at the agreement of the parties, but in the absence of any agreement, the rest period begins on Saturday at noon.

Daytime work hours range from 7:00 a.m. to 9:00 p.m. A work shift is considered a daytime shift as long as no more than three hours exceed the 9:00 p.m. limit. Otherwise it is considered a night shift, which entails an increase in remuneration.

Working hours for dangerous or unhealthy jobs, as defined by the Secretary of Labor, may not exceed six per day or 36 per week, and this reduced workweek does not result in a reduction of wages.

Minimum Wage

On Feb. 1, 2024, with regard to monthly minimum wages in general for private-sector workers who work within the industrial, commercial, and service sectors and who work outside the country’s free trade zones, the wage is RD$24,990 for large companies, RD$22,908 for medium-sized companies, RD$15,351 for small companies, and RD$14,161 for micro-enterprises. The labor ministry’s National Salaries Committee approved the minimum wage increases.

Effective Apr. 1, 2023, with regard to monthly minimum wages in general for private-sector workers who work within the industrial, commercial, and service sectors and who work outside the country’s free trade zones, the wage was RD$24,150 for large companies, RD$22,138 for medium-sized companies, RD$14,835 for small companies, and RD$13,685 for micro-enterprises.

Overtime

Any hours worked beyond the normal workweek and up to 68 hours per week are compensated at 135 percent of the normal hourly wage; any hours worked in excess of 68 hours per week are compensated at 200 percent of the normal hourly wage.

Overtime work cannot exceed 80 hours in a calendar quarter.

An employee who works on a holiday is entitled to 200 percent of the normal hourly wage. An employee who works during the weekly rest period may choose either to be paid at 200 percent of the normal hourly wage or to take a compensatory rest period in the following week equal in time to the weekly rest period.

Night shift employees are entitled to a 15 percent premium. Night shift work is that performed between 9 p.m. and 7 a.m. and also includes the entirety of any mixed shift that includes three or more hours of night shift work.

Wage Payment

Wages must be paid in cash on the date agreed by the parties but no less frequently than monthly. Employees who earn an hourly or daily wage must be paid weekly unless the parties agree otherwise. An employer’s failure to pay wages as agreed is a criminal offense.

The Labor Code permits the following deductions from wages:

• any deductions authorized by law, such as taxes and deductions for social security;
• union dues, if authorized in writing by the employee;
• advances granted by the employer against wages;
• deductions for bank loans made with the recommendation and guarantee of the employer, limited to one-sixth of the employee’s monthly salary and
• employee contributions to private pension plans.

An employee’s salary may be garnished to pay alimony or child support. No more than one-third of the employee’s salary may be garnished to pay alimony. There is no limitation on garnishment to pay child support.

Mandatory Bonuses

The employer must pay the employee, no later than Dec. 20, a Christmas bonus consisting of one-twelfth of the ordinary salary earned by the employee in that calendar year excluding overtime and profit sharing. By statute, the Christmas bonus is limited to five times the applicable minimum wage. An employee who has worked less than an entire year is entitled to a pro rata Christmas bonus. The Christmas bonus is nontaxable.

A company’s employees are also entitled to profit sharing in the amount of 10 percent of the employer’s net profits. Profit sharing for employees with fewer than three years of service is limited to 45 days of ordinary salary, for employees with three years or more of service 60 days. Profit-sharing payments must be made at the latest between 90 and 120 days after the close of the fiscal year. Profit-sharing is calculated on net profits before determination of net taxable income and any bonuses to board members, directors and managers.

The following types of businesses are exempt from the profit-sharing requirement:

• agricultural, agricultural-industrial, industrial, forestry and mining companies for their first three years of operation unless agreed otherwise;
• agricultural companies whose capital does not exceed 1 millionpesos and
• companies in free trade zones.

Reference Citations

Hours of Work: Labor Code, August 2007, arts. 147-149 (Spanish)

Minimum Wage: Monhtly Minimum Wage Rates (Spanish)

Overtime: Labor Code, August 2007, arts. 153-158 (Spanish)

Wage Payment: Labor Code, August 2007, arts. 196-201 (Spanish)

Mandatory Bonuses: Labor Code, August 2007, arts. 219-220 (Spanish)

Benefits

Vacation

An employee acquires the right to vacation after a year on the job. Employees with one to five years of continuous service are entitled to 14 days of paid vacation per year. After five years of continuous employment, the amount of paid vacation rises to 18 days. Vacation time may be taken as agreed by the parties, but the employee must be permitted to take at least one continuous week of vacation.

Vacation pay must be paid before the employee takes the leave. The employer is not permitted to provide compensation in lieu of vacation time. All accrued but unused vacation must be paid at the time the employee leaves the employer’s service.

During vacation time, the employee may not provide paid or unpaid services to the employer.

Holidays

Employees are entitled to the following 12 paid public holidays:

• Jan. 1: New Year’s Day
• Jan. 6: Three Kings’ Day
• Jan. 21: Day of the Virgin of Altagracia
• Jan. 26: Birthday of Juan Pablo Duarte
• Feb. 27: Independence Day
• Good Friday (varies)
• Corpus Christi (varies)
• May 1: Labor Day
• Aug. 16: Restoration Day
• Sept. 24: Day of the Virgin of Mercedes
• Nov. 6: Constitution Day
• Dec. 25: Christmas

All holidays except for religious holidays and national holidays are celebrated on the previous Monday if they fall on a Tuesday or a Wednesday and are celebrated on the following Monday in all other cases. Work performed on paid public holidays must be compensated at 100 percent above normal wages.

Maternity Leave

A pregnant employee is entitled to paid maternity leave for the seven weeks prior to her scheduled due date and for seven weeks after giving birth. If the employee does not use the entire seven weeks of prenatal maternity leave, she may use the remainder of that leave after birth. If the employee is covered by social security, her maternity leave pay will be paid half by the employer and half by social security. Employers contribute 7.09 percent of covered payroll and employees contribute 3.04 percent of covered earnings to finance social security maternity leave, sick leave and employee medical benefits. An allowance is paid for up to 12 months after the child’s birth if the insured’s salary is less than three times the legal national minimum wage.

If the employee wishes to take her annual leave immediately after the conclusion of her maternity leave, the employer must permit her to do so. When the employee returns to work, she is entitled to three 20-minute breaks per day for the purpose of nursing the infant. The employee is also entitled to one-half day off per month during the first year after birth to take the child to pediatric care.

If the employee is unable to return to work after exhausting her maternity leave, she must provide notification to the employer and the Ministry of Labor supported by a medical certificate and may then take additional leave without pay for the amount of time that medical treatment is necessary. Employers may not dismiss an employee during pregnancy or within three months after the birth of the child without just cause.

Paternity Leave

A father is entitled to two days of paid paternity leave when his wife or duly registered partner gives birth.

Sick Leave

The Labor Code contains no limit on the number of days of sick leave that may be taken. After a three-day waiting period, social security pays 60 percent of the employee’s earnings in the past six months (40 percent if hospitalized) for up to 26 weeks to employees who have at least 12 months of social security contributions. Employers contribute 7.09 percent of covered payroll and employees contribute 3.04 percent of covered earnings to finance social security, maternity leave, sick leave and employee medical benefits.

In case of accident or illness, employees are entitled only to receive medical care and compensation specified by the laws on social security and workers’ compensation. If the employee is not covered under social security due to the fault of the employer, however, the employer must pay the employee’s medical expenses and the appropriate compensation.

Other Leave

Bereavement leave. An employee is entitled to three days of paid leave for the death of a grandparent, parent, child or spouse/partner.

Marriage leave. An employee is entitled to five days of paid leave for marriage.

Pensions and Social Security

An employee who has made at least 30 years of social security contributions and has stopped working may retire at age 60. The amount of the pension is based on the amount of funds in the individual account, which can be used to purchase a price-indexed annuity or to make scheduled withdrawals.

Disability, old age and survivors’ pensions are paid through mandatory individual social security accounts financed by employer and employee contributions. Employees contribute 2.87 percent of covered earnings, while employers contribute 7.1 percent of covered payroll. An employee’s maximum wage for purposes of calculating social security contributions is 20 times the legal monthly minimum wage, while health contributions are imposed on salary up to a maximum 10 times the minimum wage.

An employee can claim an early old age pension at age 55 if the employee’s individual account balance is sufficient to finance a pension at least equal to 150 percent of the minimum old age pension or at ages 57 to 59 if the worker is unemployed and has at least 25 years of social security contributions. A guaranteed minimum pension is available if the employee is 65 years of age and has a low income, at least 25 years of contributions and an account balance insufficient to finance the minimum old age pension established by law. The minimum old age pension equals the lowest legal monthly minimum wage for private sector workers. The pension is not payable abroad.

An employee is entitled to a disability pension, based on degree of disability, if the employee has a work- or non-work-related injury or illness and has exhausted sick leave and workers’ compensation benefits. A regional medical committee assesses the degree of disability and the national medical committee may revise, validate or reject the decision.

Workers’ Compensation

Occupational Hazard Insurance is financed by employer payments in an average amount of 1.2 percent of applicable wages, up to a maximum of four times the minimum wage. There is no qualifying period for workers’ compensation benefits. Benefits are paid according to a schedule of four levels of assessed disability, and are based on a percentage of the employee’s base salary, which is the employee’s average covered earnings in the six months before the employee suffered a work-related injury or illness.

Employees with 100 percent permanent disability are entitled to 100 percent of the base salary. Employees with at least 67 percent permanent disability are entitled to 70 percent of the base salary. Employees with 50 to 66 percent permanent disability for their usual occupation are entitled to 50 percent of the base salary. Employees with 15 to 49 percent permanent partial disability for the current occupation are entitled to a lump sum of five to 10 times the base salary.

Reference Citations

Vacation: Labor Code, August 2007, arts. 177-178, 182-184 (Spanish)

Holidays: Law No. 139-97, arts. 1-5 (Spanish)

Maternity Leave: Labor Code, August 2007, arts. 232-238 (Spanish); Resolution No. 211-14 which approves Convention No. 183 on the Protection of Maternity 2000, art. 14 (Spanish)

Paternity Leave: Labor Code, August 2007, art. 54 (Spanish)

Sick Leave: Law No. 87-01, establishing the Dominican Social Security System, art. 131

Other Leave: Labor Code, August 2007, art. 54 (Spanish)

Pensions and Social Security: Labor Code, August 2007, art. 47 (Spanish)

Workers’ Compensation: Law No. 87-01, establishing the Dominican Social Security System, art. 196

Labor Relations

In General

Employees in the Dominican Republic have a constitutional and statutory right to form unions.

Right to Organize

Employers may not attempt to persuade employees to join or not to join a union, to withdraw from or remain in a union or to vote for a particular candidate in union elections. Employers also are forbidden from requiring new hires not to join a union as a condition of employment.

A union may represent the employees of a company only if a majority of the employees, excluding managers, are members. The union must have at least 20 members. If the company employs workers belonging to different professions, and no single union represents a majority of the employees, a collective bargaining agreement may be entered into with all of the unions representing each of the professions, if a majority of the total number of employees are union members.

A union may represent the employees in an entire industry if it represents the majority of the workers who are employed in that industry at either the local, regional or national level. Where there is both a company union and an industry union, preference is given to negotiations by the industry union.

Unions may not directly or indirectly restrict the freedom to work or take any action to compel employees to become or to remain members. Unions also must maintain independence from political parties and religious organizations.

All unions must be registered with the Ministry of Labor and any acts taken by an unregistered union are null and void.

Discrimination in employment on the basis of union membership is forbidden. In addition, employees who are union board members or negotiators and employees who are members of a union that is being formed may not be terminated without cause. The termination of any such employee must be submitted to the Labor Court, which will determine within five days whether the employee was terminated for cause rather than for union activity or union management functions. If an employer fails to submit such termination to the Labor Court, the termination is void.

A collective bargaining agreement must be in writing, with copies provided to each party, plus two copies for the Ministry of Labor. A collective bargaining agreement on working conditions must be displayed for 15 days in the most visible locations in the establishment where its provisions will be applied.

The duration of a collective bargaining agreement may not be for a period of less than one year or for more than three years. If the agreement does not specify its duration, it is presumed to be in effect for one year. The collective bargaining agreement will be automatically extended if no party objects at least two months in advance of its expiration date.

Works Councils

The Labor Code does not address works councils.

Dispute Resolution

Employers and employees may agree to submit any labor dispute to arbitration. In addition, employers and employees may submit a complaint to the Ministry of Labor alleging irregularities in the execution of contracts, agreements or labor laws and regulations, and the law requires the Ministry of Labor to conduct an investigation within three days of the filing of the complaint. Parties also may seek mediation before the Ministry of Labor.

Employment disputes also may be submitted to the Labor Courts for resolution, but no claim will be decided without first holding a settlement conference, except for claims relating to strikes and enforcement of judgments.

Strikes and Lockouts

Employees have a constitutional right to strike, although the Labor Code limits strikes to peaceful interruptions of the striking employees’ work and expressly forbids acts of coercion or physical or moral violence. Strikes are not permitted in essential services (such as communications, public utilities or hospitals) where the strike is likely to endanger the life, health or safety of any persons.

Before declaring a strike, employees must wait 10 days after notifying the Ministry of Labor in writing that:

• the strike is aimed at resolving an economic or legal conflict affecting the collective interests of the employees,
• the conflict has been submitted unsuccessfully to administrative conciliation and none of the parties has appointed arbitrators,
• the strike has been approved by the vote of more than 51 percent of the employees in the company or companies concerned (not just a majority of union members) and
• the strike will not affect essential services.

Successorship Clauses

In cases where a business is sold or transferred, the successor employer becomes responsible for its predecessor’s rights, privileges and duties towards the employees under the collective agreement.

Reference Citations

Right to Organize: Labor Code, August 2007, arts. 113-115, 318, 324, 333 (Spanish)

Dispute Resolution: Labor Code, August 2007, art. 419 (Spanish)

Strikes and Lockouts: Labor Code, August 2007, arts. 401-407 (Spanish)

Successorship Clauses: Labor Code, August 2007, art. 63 (Spanish)

Safety, Health and Security

In General

Employers have a constitutional and statutory duty to provide a safe and hygienic workplace for their employees.

Workplace Safety and Health

Employers must provide a first aid kit for employees in the workplace and distribute free of charge any medications specified by the health authorities for the prevention of epidemic diseases.

Drug and Alcohol Use

Employees are forbidden from reporting to work or otherwise working in a state of intoxication or any similar condition.

Monitoring and Surveillance

The Labor Code does not address monitoring and surveillance of employees.

Reference Citations

Workplace Safety and Health: Labor Code, August 2007, art. 46 (Spanish)

Drug and Alcohol Use: Labor Code, August 2007, art. 47 (Spanish)

Termination

Termination by Employer

Each party to an employment contract has the right to terminate the contract without cause by giving the requisite amount of notice to the other party. An employer that terminates employment without cause is also required to provide the requisite amount of severance pay.

No notice or severance pay is required if the contract is terminated by mutual agreement of the parties, because the contract has been completely executed or because of impossibility of performance.

When an employment contract terminates for any reason, the employer must provide the employee, at the employee’s request, with a certificate of employment stating the dates of employment, the type of work performed and the salary earned.

A party that terminates the employment contract without cause must give the following amounts of notice:

• at least seven days’ notice if the employee has worked for the employer at least three but no more than six months,
• at least 14 days’ notice if the employee has worked for the employer for more than six months but no more than one year and
• at least 28 days’ notice if the employee has worked for the employer for more than one year.

A party that fails to give the requisite notice must pay the other party one day’s salary for every day of required notice that was not provided. An employer also must provide written notice to the Ministry of Labor or appropriate local authority within 48 hours.

Employers may terminate an employee for cause if the employee commits any of 19 acts specified in Article 88 of the Labor Code, including:

• claiming skills not possessed,
• providing false references,
• committing dishonest or immoral acts during working hours,
• revealing confidential business information,
• being absent from work for more than two consecutive days or two days during the same month without permission or good cause,
• being insubordinate,
• failing to follow safety procedures or
• being imprisoned under a sentence not subject to appeal.

An employer’s right of termination for cause must be exercised within 15 days after the employee commits the act that constitutes cause for termination. The employer must, within 48 hours of termination for cause, provide the employee and the Ministry of Labor with a statement of the grounds for termination, which may not thereafter be modified.

Termination by Employee

An employee may resign his or her employment for cause if the employer commits any of 14 acts specified in Article 97 of the Labor Code, including:

• misleading the employee at the time the employment contract is entered into,
• failing to pay wages,
• requiring the employee to perform work not agreed to or in a location that would require the employee to change residence,
• exposing the employee to a contagious disease or
• requiring the employee to work in dangerous conditions.

An employee’s right to resign for cause must be exercised within 15 days after the employer commits the act that constitutes cause for termination. The employee must, within 48 hours of resignation for cause, provide the employer and the Ministry of Labor with a statement of the grounds for resignation.

A party that terminates the employment contract without cause must give the following amounts of notice:

• at least seven days’ notice if the employee has worked for the employer at least three but no more than six months,
• at least 14 days’ notice if the employee has worked for the employer for more than six months but no more than one year and
• at least 28 days’ notice if the employee has worked for the employer for more than one year.

A party that fails to give the requisite notice must pay the other party one day’s salary for every day of required notice that was not provided. An employee who terminates the employment contract without cause also must provide such notification, but the notice may be oral or in writing.

Plant Closings and Mass Layoffs

In cases where it is necessary to reduce the company’s personnel, the employer must, prior to implementing the reduction, communicate its decision to the Labor Department to verify compliance with applicable laws.

If layoffs are necessary, employees must be laid off in the following order:

• single foreign employees,
• married foreign employees,
• foreign employees married to Dominicans,
• foreign employees with Dominican children,
• single Dominican employees and
• married Dominican employees.

All other things being equal, employees with lesser seniority should be laid off before employees with greater seniority.

Payment on Termination

An employer that exercises its right to terminate an employee without cause is required to pay severance pay in an amount determined by the length of the employee’s service:

• six days’ salary if the employee has worked for the employer at least three months but no more than six months,
• 13 days’ salary if the employee has worked for the employer at least six months but no more than one year,
• 21 days’ salary per year of employment if the employee has worked for the employer at least one year but no more than five years and
• 23 days’ salary per year of employment if the employee has worked for the employer more than five years.

Severance pay is required even if the employee immediately begins working for a new employer.

When the employment contract terminates because an employee dies, becomes too physically or mentally disabled to work or suffers an illness that impedes job performance for at least one year, the employer must pay the employee or the employee’s heirs:

• five days’ salary if the employee has worked for the employer at least three months but no more than six months,
• 10 days’ salary if the employee has worked for the employer at least six months but no more than one year and
• 15 days’ salary per year of employment if the employee has worked for the employer at least one year.

The same payments are required if the business is terminated due to death or incapacity of the employer.

Unemployment Insurance

No provisions are included in the Labor Code covering unemployment insurance.

Reference Citations

Termination by Employer: Labor Code, August 2007, arts. 67-96 (Spanish)

Termination by Employee: Labor Code, August 2007, arts. 67-69, 71-100 (Spanish)

Plant Closings and Mass Layoffs: Labor Code, August 2007, art. 141 (Spanish)

Payment on Termination: Labor Code, August 2007, arts. 80-82 (Spanish)

Personal Taxes

Residency Requirements

An individual is regarded as being resident in the Dominican Republic for tax purposes if present in the country for more than 182 days in a calendar year, whether or not those days are continuous.

Taxable Income

Residents are taxed only on Dominican-source income for the first three years of residence, after which they are taxed on their worldwide income. Nonresidents are subject to income tax only on their Dominican-source income.

All cash for services rendered in the Dominican Republic is taxable with the exception of Christmas bonuses and social security payments. The cash value of benefits such as cars, housing, relocation allowances, club memberships and similar items are included in taxable income.

Tax Rates

Nonresidents are taxed at a flat 27 percent on Dominican-source income.

Income tax rates for residents are progressive and range from 15 percent to 25 percent depending on annual income.

Employers and employees are also liable for social security contributions.

Employers are also liable for labor risk contributions (akin to workers’ compensation insurance in the United States). The rate varies depending on the employer’s industry and the risks associated with the enterprise.

Employees are liable for contributions to the pension and health systems.

Reference Citations

Residency Requirements: Income Tax Act, No. 11-92, art. 12

Web References

Law and Regulation

In Spanish.

Código de Trabajo de la República Dominican (Labor Code)

Constitution of the Dominican Republic

Decreto Sobre Igualdad de Oportunidades y Derechos Laborales a las Personas con Limitaciones Fisicas, Mentales or Sensoriales 1995 No. 107/95 (Decree on Equal Opportunities and Employment Rights of Persons with Physical, Mental or Sensory Limitations)

Government Websites and Publications

In Spanish.

Consejo Nacional de Seguridad Social (National Social Security Council)

Presidencia de la Republica Dominicana (Presidency of the Dominican Republic)

Superintendencia de Pensiones de la República Dominicana (Superintendent of Pensions)