COUNTRY

Written Agreements

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)

Oral Agreements

The Labor Code recognizes oral or verbal contracts. These types of contracts are valid for indefinite employment if no written contract exists, as all employment relationships are presumed indefinite unless otherwise demonstrated in writing.

Either party may demand from the other that the indefinite employment contract concluded verbally be formalized in writing and, in case of refusal, contact the Department of Labor. If differences arise, the matter will be submitted to the labor court, in the ordinary form of contentious matters, so that the proper justification of the existence of the contract and its stipulations is made. Once an employment contract is concluded in writing, its modifications must be made in the same way.

Implied Agreements

In the Dominican Republic, any personal employment relationship is presumed to involve an employment contract unless proven otherwise. In the absence of a written or oral contract, the existence of a contract is proven by the actions of the parties involved, and the Labor Code governs the employment relationship. Implied contracts are recognized in cases where employment continues under conditions suggesting an indefinite relationship, such as successive project-based jobs for the same employer. An employment contract obliges what has been expressly agreed upon and all the consequences that are in accordance with good faith, equity, usage, or the law.

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.

In the Dominican Republic, the following public holidays are observed:

• New Year’s Day - January 1
• Three Kings’ Day - January 10
• Day of the Virgin of Altagracia - January 21
• Birthday of Juan Pablo Duarte - January 24
• Independence Day - February 27
• Good Friday - date subject to change annually
• Corpus Christi - date subject to change annually
• Labor Day - May 2
• Restoration Day - August 16
• Day of the Virgin of Mercedes - September 24
• Constitution Day - November 6
• Christmas - December 25
• New Year's Eve - December 31

The days declared non-working days by the Constitution or the law are paid rest days for employees unless they coincide with the weekly rest day.

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.

The Labor Code of the Dominican Republic does not provide for sick leave separately from the annual leave employees are entitled to. However, there are regulations related to maternity leave and domestic worker protection that may allow employees to take related leave.

If, as a consequence of pregnancy or childbirth, the work a woman performs is detrimental to her health or that of her child and this fact is attested to by a doctor, the employer is obliged to facilitate the employee in changing jobs. If that change is impossible, the employee has the right to a period of leave without salary. Additionally, during the first year after her child's birth, a mother may choose to have half a day each month to take the child to a pediatrician.

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 which 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. The employee is entitled to receive their ordinary salary during maternity leave. Employees who qualify to receive maternity benefits from the Institute of Social Security will receive 50% of their salary from social insurance, while the employer will be responsible for paying the remaining 50%.

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.

Minimum Wage

Effective April 1, 2025, the minimum wages for private sector companies and farm workers are as follows:

• DOP 27,988.80 (Dominican pesos) monthly for employees in large companies (those with more than 50 employees and gross sales above DOP 202,000,000 per year)
• DOP 25,656.96 monthly for employees in medium-sized companies (those with 51 to 150 employees and gross sales between DOP 54,000,000 to DOP 202,000,000 per year)
• DOP 17,193.12 monthly for employees in small enterprises (those with 11 to 50 employees and gross sales between DOP 8,000,000 to DOP 54,000,000 per year)
• DOP 15,860.32 monthly for employees in micro enterprises (those with up to 10 employees and gross sales of up to DOP 8,000,000 per year).

Salary must be paid regularly and at least once a month. Employees who earn wages per hour or day must be paid weekly unless otherwise agreed upon by the parties.

Overtime, Holiday & Vacation Pay

According to the Dominican Labor Code, workers are paid for overtime hours as follows:

• At least 135% of the regular hourly wage for hours that exceed the 44 hours weekly limit
• At least 200% of the regular hourly wage for hours that exceed 68 hours a week
• At least 115% of the regular daytime hourly wage for night hours

Salary for the employee's annual 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 any employer.

Employees working on public holidays are entitled to 200% of their regular wages or compensatory time off.

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Notice Period

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.

Severance Benefits

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.

Pension

The labor laws in the Dominican Republic provide that employees are entitled to an old-age pension (pensión por vejez) when they meet the following criteria:

• The employee is 60 years old and has a minimum of 360 months (30 years) of contributions.
• The employee has ceased all gainful activity.

If the account balance is sufficient to finance the minimum monthly old-age pension, the insured has 2 payment options: purchase a price-indexed annuity or make programmed withdrawals. If the account balance is insufficient, a lump sum of the account balance is paid.

Dependents/Survivors Benefits

To qualify for a survivors pension (pensión por sobrevivencia), the deceased must have received or been entitled to receive an old-age or disability pension at the time of death.

Eligible survivors include a widow(er) or partner and unmarried children younger than age 18 (age 21 if a full-time student, no age limit if disabled).

A survivors pension is worth 60% of the deceased's average indexed covered earnings in the last 3 years. Life insurance tops up the deceased's individual account if the balance is less than the required minimum to finance the survivors pension.

Invalidity Benefits

To qualify for a disability pension (pensión por discapacidad), the insured individual must have at least a 66.7% assessed loss of earning capacity and have exhausted sickness benefits. The disability must be the result of a chronic illness or non-work-related accident.

Insured persons who qualify for a disability pension will receive 60% of their average indexed covered earnings in the three years immediately before the disability began. The disability pension is financed by the disability insurance provided by an insurance company until retirement or death. The insurance company also pays a monthly contribution to the insured's individual account until retirement or death.

The eligibility for occupational injury disability benefits must be assessed with a work injury or occupational disease (a medical board determines the degree of disability). Accidents that occur during the commute to and from work are also covered.