Hire in Dominican Republic

Employment contracts are indefinite unless the nature of services requires only a fixed term or specific services. A written employment is required for fixed-term work.

In the Dominican Republic, while there is no specific law prohibiting background checks, the Ministry of Labour has issued Resolution 02/2015. This restricts employers from using credit bureau reports for making hiring or employment retention decisions.

There is no official trial period in the Dominican Republic. However, an employer may terminate a contract within the first three months of employment without incurring any additional obligations.

The standard work period in the Dominican Republic is limited to a maximum of eight hours per day and 44 hours per week. Employees working more than six hours a day must be given a mandatory one-hour lunch break. Additionally, employees are entitled to a minimum weekly rest period of 36 hours.

Work that goes beyond the regular weekly hours is categorized as overtime and is regulated by the terms set out in the employment contract or collective bargaining agreements. For overtime between 44 and 68 hours per week, the pay is 135% of the standard rate. Overtime exceeding 68 hours per week is paid at 170% of the regular wage. Overtime performed on weekends or public holidays is compensated at 200% of the regular rate. Night shift overtime is paid at 115% of the normal wage.

Bonuses are rewards designed to benefit employees, enhance productivity and boost motivation. They are typically awarded quarterly, semi-annually or annually based on employee performance. Since bonuses are separate from regular salaries, they are not included in the calculation of social charges, vacation pay or similar benefits.

Although the law does not mandate a 13th salary, many employers provide a Christmas bonus equivalent to one month’s salary. This is typically paid around December 20th.

Employers are obligated to allocate 10% of their annual pretax profits to employees, with employees who have less than three years of service receiving compensation equivalent to 45 days’ salary, and those with three or more years receiving 60 days’ salary. These payments must be issued within 90 to 120 days after the fiscal year concludes if the company is profitable. Companies operating in free trade zones, as well as agricultural, industrial, forestry, and mining enterprises during their initial three years, are not required to participate in profit-sharing.

When ending an employment agreement at will, the party initiating the termination must give a notice period of seven, 14 or 28 days, depending on whether the agreement has lasted three, six or 12 months.

Employers can terminate employees for specific reasons but must furnish evidence to support the grounds for dismissal. They are also required to submit written notification of the termination to the Department of Labor within 48 hours of the dismissal. Similarly, employees who resign for cause must provide evidence to substantiate their reasons for leaving.

Employees are entitled to severance pay from the employer if their resignation is deemed justified. The amount of severance pay depends on the duration of employment with the company. The employer must disburse the severance pay within 10 days following the termination of the contract. The severance pay amounts are determined according to the following table:

In the Dominican Republic, non-compete clauses after employment are frequently utilized but are not governed by legal regulations or established case law. It is recommended to set a clear time limit for such clauses. This is ideally no longer than one year. Companies should also offer some form of financial compensation for the restriction imposed on the employee during that time.

Section 44 of the Dominican Constitution guarantees citizens’ rights to access their personal data in both public and private databases, and to understand the purpose and usage of this data. The Constitution mandates that personal data processing must adhere to principles of reliability, legality, integrity, security, and purpose. Law No. 172-13 (DPL), enacted on December 13, 2013, governs the collection, storage, and management of personal data and includes regulations for credit bureaus, which manage consumer data. Additionally, Law No. 53-07 addresses high-tech crimes, protecting information systems and data, though it does not specifically focus on personal data.

In the Dominican Republic, salaries must be paid in cash and must be at least equal to or exceed the minimum wage. Additionally, the interval between salary payments must not exceed one month.

Full-time employees who have worked for at least one year are entitled to 14 days of paid annual leave. This amount increases to 18 days after five years of employment. Vacations must be taken in periods of at least one week and cannot be substituted with other forms of compensation.

Under Dominican law, there is no distinction between short-term and long-term sick leave. The Social Security Treasury is required to pay employees a portion of their contributions if the sick leave extends beyond four days. According to Article 52 of the Labor Code, workers are entitled only to medical care and compensation provided by the laws related to work accidents and Social Security in the event of illness.

If an employer fails to register the employee with the Dominican Social Security or does not pay the required contributions, the employer must cover the full salary during the employee’s absence. They must also bear the employee’s expenses related to illness or accidents.

According to the Labor Code (Articles 231, 232, 236, 240, 243), employers are required to offer special protection to employees who are pregnant or have recently given birth. Employers are prohibited from terminating such employees during their pregnancy and for up to three months after childbirth. If termination occurs without just cause, the employer must compensate the employee with five months’ salary. This is paid in addition to the standard severance pay.

Paid maternity leave includes seven weeks before the expected birth date and seven weeks after. Employees are also entitled to a 20-minute rest period each workday for breastfeeding. Maternity leave pay is shared equally between the employer and social security.

New fathers in the Dominican Republic are entitled to two days of paternity leave.

Employees in the Dominican Republic are eligible for five days of paid leave upon getting married.

Employees are granted five days of bereavement leave for the death of a parent, grandparent, spouse or child.