- Overview: Dominican Republic
- Global HR Compliance
- Global PEO and payroll
- Work permit for hiring expats via PEO
- Contractor vs. employee: which is better?
Global HR Compliance in Dominican Republic
If you hire international workforce, or plan to hire, then Hiring and Firing Workforce in Dominican Republic Guide below will help you understand the nuances of labor legislation in the country.
Companies hire international workforce for various reasons but in most cases they are:
- entering the foreign markets to sell company products. To do so, the company hires sales representatives who would represent their product and sell it to their local client base.
- hiring a global talent with unique skills that is unavailable in the local market or costs the company less than the talent with similar skills hired in the home country.
Before entering a certain foreign market or engaging a global talent, it is crucial for the company to understand how it can make local hires and reward its workers on a monthly basis. Growing companies often face a challenge of paying benefits and bonuses to the commission-based independent sales representatives they are working with.
If you intend to hire and pay your foreign workforce in full compliance with labor laws and regulations of Dominican Republic, then the Global Employer of Record service from Acumen International may be the best way for you to go. We are an International PEO company and we specialize in global employment, meaning we can employ your employees in Dominican Republic and act as their legal employer on your behalf. We will payroll your foreign workforce monthly and provide benefits to them through our global network so you don’t have to set up your own legal entities there.
We are experts in global workforce employment in , and our goal is to become your single provider. Instead of working with numerous local staffing agencies and legal advisors, Acumen International can solve your global business challenges and save you time, costs, and resources.
Our team of English-speaking professionals frees you from working through language nuances. Acumen International works 24/7 and can assist you whenever you need, regardless of time zones. Our goal is to create tailored labor solutions for you that are managed legally and in full compliance with the local employment laws.
With our knowledge and deep understanding of local nuances, you easily satisfy your need for skilled professionals in your global industry. With our qualified local partners, you can trust that your global workforce satisfies all local tax, social security, and immigration requirements in Dominican Republic.
See the guide below for a general overview of labor rules and regulations in Dominican Republic or contact us if you need to employ workers in Dominican Republic or would like to get more details.
Hiring and Firing Workforce in Dominican Republic Guide
#1 – Contracts
There are no express legal stipulations as to the form and particulars of an employment contract. Employment contract is considered to have been established if the relationship between two parties is such that one party agrees to render certain services to the other and the other party agrees to provide remuneration for such services. Hence, employment relationship can by established by means of a verbal or written agreement. Employment contract that was originally concluded verbally may later be changed to a written contract on request of either of the parties. Contracts of employment can be amended at any time by the parties of employment. As a rule, all amendments must be in writing if the contract was originally concluded in writing.
#2 – Minimum statutory employment contract
# Hour of work
Aside from that of those who work in managerial/executive positions, the maximum regular hours of work for most employees are 8 hours per day and 44 hours per week. Minors (those between 14 and 16 years) are prohibited from working more than 6 hours per day. Employees whose jobs are hazardous in nature are entitled to a shorter workweek – up to 36 regular hours per week. Employees are entitled to 36 hours of undisturbed rest period every workweek.
# Probation period
Employees may be put on probation for no longer than 3 months.
# Annual leave
Employees are eligible for 14 days of annual paid leave after one-year of continuous employment with a company. Annual leave entitlement must be increased to 18 days for all employees who have stayed with a company for at least 5 years. Payment for annual leave must be made the day following the start of the leave.
# Maternity leave
Employees must be granted 6 weeks of paid maternity leave during their pregnancy and another 6 weeks after childbirth. Employees on maternity leave are eligible to receive maternity benefits from social security. Upon completing a maternity leave, employees must be allowed to take 3 rest periods of 20 minutes every work day for breastfeeding and one half-day off per month for child’s checkup. New fathers are entitled to 2 days leave for childbirth.
# Sick leave
Employees who cannot perform their duties for reason of illness must be allowed to take medical leave which should be paid by social security.
Employees are entitled to premium pay for working outside the normal working hours, on holidays or weekly rest periods. Employees are entitled to 35 percent premium pay per hour for every first 24 hours’ overtime they work per week. Employees must be remunerated with 100 percent premium for every hour they work in excess of the first 24 hours’ overtime per week. Employees are entitled to 100 percent premium pay if they work on holiday or weekly rest period. Night works are compensated for with 15 percent overtime pay.
# State minimum salary
The minimum wage for employees who work in Free Trade Zone (FTZ) industry is RD$ 8,310 Per month. Those who do not work in FTZ industry are entitled to minimum wage of between RD$ 7,843 and RD$ 12,873 per month, subject to company size. Employees who work is public sector are entitled to receive no lesser than RD$ 5884 per month.
# Employment termination
An employer or employee has the right to terminate a contract of employment on condition that the terminating party must provide a prior notice to the other party. Subject to number of years of employment, notice period must be given as follows:
- seven days’ notice for employees who have been with the company for a minimum of 3 months up to 6 months;
- fourteen days’ notice for those who have been with the company for a minimum of 6 months up to 12 months;
- twenty-eight days’ notice for those who have been with the company for more than 12 months.
Terminated employees are entitled to severance pay of:
- 6 days wage if they have been with the company for a minimum of 6 months up to 12 months;
- 13 days wage if they have been with the company for a minimum of 6 months up to 12 months;
- 21 days wage for each year of service if they have been with the company for a minimum of 1 year up to 5 years;
- 23 days wage for each year of service if they have been with the company for more than 5 years.
Acumen International can help you fast-track your possibilities of entering and expanding your business in Dominican Republic by providing you with our Employer of Record services. Our unique mix of PEO/EOR solutions will enable you to jumpstart your global operations almost immediately, cost-effectively and compliantly without any need to set up a legal entity first or afterwards.