New Labor Regulations in Dominican Republic

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The Dominican government has introduced new labor regulations aimed at protecting workers’ rights and improving working conditions. The new rules took effect on [date] and set a maximum of eight hours per day or 44 hours per week for most employees, with exceptions for certain categories.

Working Hours and Rest Periods

Workers are not allowed to remain at their workplace for more than ten hours a day.
Regular rest periods throughout the day must be provided.
All workers have the right to an uninterrupted weekly rest of 36 hours.

Overtime Pay

Employers are required to pay 35% over the normal wage for overtime between 44 and 68 hours per week.
For overtime surpassing 68 hours per week, employers must pay 100% of the normal wage.

Termination of Employment Contracts

In addition to the new labor regulations, Dominican law allows for unilateral termination without cause by either party in indefinite term agreements. However:

Employers must pay severance and acquired rights when effecting termination.
Workers who are terminated without cause have the right to:
- Advance notice
- Severance pay
- Other acquired rights such as mandatory Christmas bonuses and compensation for vacation time

Employee Representations

Employers are not required to inform or consult with employees regarding decisions that may affect their working conditions. However, employees do have the right:

To unionize
To represent their professional interests within their workplace

Tax Law

The Dominican tax law has also undergone changes, with new regulations aimed at increasing revenue and improving compliance.

Income Tax

Employers are required to withhold income tax on salaries paid to their employees.
Taxes apply depending on the employee’s annual income:
- 15% for taxable net income up to RD$500,000
- 20% for taxable net income between RD$500,001 and RD$1,000,000
- 25% for taxable net income above RD$1,000,000

Employers must register with the Social Security Treasury.
Monthly payments are required for:
- Family health insurance
- Pension fund contributions
- Occupational risk insurance
- Other benefits