Working conditions and labour laws in Dominican Republic

Okay lets jump in here!  15 years here of managing employees, at times being one..... here is what I know.

1. It is almost impossible to find a job here if you do not have residencia and a cedula.  The reason is - if caught the employer is responsible and always wrong. Few employers are willing to take this risk except  construction companies.

2.  Jobs here will rarely if ever pay decent money by expat standards. They do exist but you will require specific skill sets or be in sales.

3.  Most jobs require Spanish. Exceptions will be in tourism and call centers.

4. Labor laws are very specific and are territorial in nature. If you live and work in this country you are covered whether your status is legal or not. Labor laws are written such that it benefits the employee in many but not all ways.

5.  Work conditions vary by industry and employer. There is little  interest in your well being or safety. 

6.  You can download the entire labor code but good luck reading it or understanding its application.  http://mt.gob.do/images/docs/biblioteca … rabajo.pdf

7.  Laws are broken all the time by employers and many employees will say nothing as they are in fear of losing their jobs. For example = often overtime is not paid for.  People are told you want your job,  shut up.

8. Unemployment -  is high!  Current figures show that the unemployment rate for males under age  30 is over 30%!  It is higher in specific areas.  For this reason often there is abuse.

9. If you are an employer - make sure you understand the rules and follow them. As expats we are held to a higher standard.

10. Working here is very  very different then wherever you are from.  Don't try to change it,  you will need to adjust.

11.  Labor week is  44 hours.  Normally that is  5.5 days a week with a minimum  36 hours off.  Special conditions apply in specific industries.  For example nurses can work  12 hour days etc. 

12.  As an expat you have all the rights as a Dominican under the labor code.  These apply at day 90 of a working arrangement. Before day 90 they can fire you for no reason at all. After day 90 it changes.

13. As long as I have been here they have talked about updating the labor code.  Only changes have been  implementing some insurance benefits and pension style benefits and updating minimum wage guidelines.

14. Minimum wage depends on industry and size of company.

I would add, that if you are someone that would be earning a higher wage, it is often better to be employed as a entity to avoid the high level of income tax that kicks in at a relatively low threshold when currency conversion is considered.

This is what many Dominican professionals/business people do, and so set off all manner of expenses against their tax liabilities. I am sure many will have been asked if they have a 'comprabante fiscal' when shopping anywhere or at restaurants and gas stations.

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There are huge issues with that strategy!  If it looks like an employee it will be considered an employee under the law.

They are also cracking down on use of "comprabante fiscal"  incorrectly.

As an employer in the DR I note a few things that are interesting.
If your employees are full time salaried then you will pay 13 months of wages. The 13 month is paid in December.
If they are salaried and you want to close your business for a period of time,you still pay them. You must provide insurance for your workers.  There is a lot of government reporting to bring done. Often you are better off to pay piecemeal.  Eg." That job is worth 4,000 peso.That's what I pay you must finish in 5 days."
Rotate workers so no one works a true full time or they can go to the government and complain,then suddenly you have a full-time salaried employee that is entitled to many retroactive benefits.
Be aware being "nice" is not rewarded. If you provide food one day,they will expect it every day. If you allow longer breaks one day,it will be the new norm. Realize that for many workers ,they do not look to the future,it is all about today.They conduct themselves accordingly. The old song lyric describes it well. " I got up this morning and got myself a beer, 'cause the future is uncertain and the end is always near."

Some of that is  correct and some will not work. So:

Yes a full time or part time "fiao"  employee is entitled to full benefits under the law.  The key is they work regular.  The 13th salary is a part of that. It is proportional if they work less than a full year.

Employees registered with the TSS, gov't body,  automatically get the insurance under the law.  This is paid for 30% by the employee and 70% by the employer, more or less.

Yes if you close your business for a period you need PERMISSION in order to "LAY OFF" your employees. This is seldom given.

Contract work is fully legal.  BUT you need to follow several rules when employing this strategy.

Rotating workers does not work UNLESS they are off work for a full 89 days before they come back in.  Otherwise it is a continuation of the work contract. That is what many hotels do,  they work bartenders for example  89 days, lay them off for 89 days and then they start over.

You make a very very valid point.  Be careful what you do -  if it becomes the normal it becomes part of the "labor contract" and now you are held to it! 

I advise to pay a fair wage,  treat people fair but do not every go overboard. Don't loan employees money.  Don't take on  full time or part time regular employees unless you understand it very well and know what you are getting into!  The cost CAN be high.

IF you have a new employee you have 89 days to test them out. Any issues, let them go!  IT never gets better then the first 89 days!