March 2023
Agreements for a particular project or service are entered into when required given the nature of the employment relationship.
Fact: It is the most common agreement used in the construction industry.
Labor laws protect Dominican and foreign workers without distinction and notwithstanding their migratory status. However, an employer could face sanctions if it hires foreign employees that are not qualified or dully accredited to work in the country.
It is important to bear in mind that 80% of work labor in a company and its total of salaries paid must be occupied and destined for Dominican workers.
Notwithstanding the above, the following exceptions apply:
Entities with less than 10 employees do not need to comply with the 80% rule. The following distinctions are made: i) in companies with 9 employees, 6 must be Dominican; ii) in companies with 8 or 7 employees, 5 must be Dominican; iii) in companies with 6 employees, 4 must be Dominican; iv) in companies with 5 to 4 employees, 3 must be Dominican ;v) in companies with 3 employees, 2 must be Dominican; and vi) in companies with 2 or 1 employee, 1 must be Dominican.
Foreign employees with the following conditions are exempted from the restrictions: i) employees holding direction or management positions in a company, ii) technical employees, provided that, under the Labor Department’s consideration, there are no unemployed Dominican workers with the skills to occupy those positions, iii) workers from family workshops, iv) foreign persons married to Dominican citizens, with more than 3 years of uninterrupted
It is established through resolutions from the Ministry of Labor and depends on the sector, field of work, and capital stock of employing company. As reference, minimum wage for employees of a “big company” in the private sector is currently at DOP 21,000.00.
The law allows the employer to freely negotiate with the prospective employee.
However, minimum wages must be respected.
Work hours cannot exceed 8 hours per day and 44 hours per week in normal conditions. In conditions declared as “dangerous”, work hours cannot exceed 6 hours per day and 36 hours per week. In exceptional cases, the law allows a maximum of 10 hours per day and 60 hours per week. In addition, employers must guarantee that all employees have a weekly uninterrupted break of 36 hours.
By legal provision, you must keep personnel sheets, salary and wage books, vacation records, records of work hours, interruptions, overtime, amount of remuneration and age and gender of each worker.
Christmas salary: Employees have the right to receive a 13th payment equivalent to the average of their last 12 salaries. Such amount must be paid by employer during the first 20 days of December of each year. This amount is not subject to any withholding or additional deduction.
Participation in the company’s profits: Employees have the right to receive an annual payment of 10% of the company’s net profits. The individual participation of each employee from such bonus may not exceed the equivalent of forty-five days of regular salary for those who have served for less than three years, and sixty days of regular salary for those who have provided continuous service for three or more years.
Vacations: Employees have the right to a period of mandatory rest with right to enjoy salary of 14 business days to be granted to every employee after 1 year of uninterrupted work. After the employee has 5 years in the company, the vacation period increments to 18 business days.
Note: Some companies grant employees a vacation bonus, corresponding to 14 or 18 days of regular salary, depending on their seniority.
Those related to income tax that are detailed later in the taxes section; mandatory contributions to social security (containing the Family Health Insurance, Pension Fund and Occupational Risk Insurance), as well as the contribution to the National Institute of Professional Technical Training (Infotep).
When a contract has been suspended due to an accident or sickness suffered by the employee, such employee shall receive the medical attention and retributions granted by law for work accidents and related to social security. In case the employee is not insured due to a fault of the employer, the employer shall cover medical expenses and corresponding compensations.
Yes, Dominican Labor law recognizes three types of labor unions:
Professional labor unions, composed by workers that work in different entities but practice the same profession, e.g. construction workers labor union,
Company labor unions, grouping workers that provide services in a same company, notwithstanding their area of work, and Field of activity labor unions, composed of workers that provide services in different companies, all of a same industrial, commercial or service activity, notwithstanding their area of work, e.g. the textile industry labor union.
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