Employer of Record Guide in 

Dominican Republic

Vacation Leave

• Entitlement: 14 calendar days per year after one year of service
• Accrual: Begins after 12 months of continuous employment
• Vacation pay: Regular salary plus vacation bonus
• Scheduling: Must be taken within the year following entitlement, with employer approval

Sick Leave

• Paid sick leave: Up to 3 days per month (maximum 18 days per year)
• Medical certificate: Required for absences exceeding 3 consecutive days
• Extended illness: Social Security covers extended medical leave after initial employer-paid period
• Chronic conditions: Special provisions may apply under Social Security

Maternity Leave

• Duration: 14 weeks total
  • 6 weeks before expected delivery
  • 8 weeks after delivery
• Pay: 100% of salary, funded by Social Security
• Job protection: Position must be held during leave period
• Nursing breaks: 1 hour daily for nursing mothers (up to 12 months)

Paternity Leave

• Duration: 2 days of paid leave
• Timing: Must be taken within 15 days of birth
• Pay: 100% of salary, paid by employer

Bereavement Leave

• Duration: 3-5 days depending on relationship to deceased
• Immediate family: 5 days (spouse, children, parents)
• Extended family: 3 days (siblings, grandparents, in-laws)
• Pay: Full salary maintained

Personal & Family Leave

• Marriage leave: 5 paid days
• Study leave: Time off for educational purposes (unpaid, but job-protected)
• Civic duties: Paid leave for jury duty, voting, and other civic obligations

Summary

Termination Types

Termination With Cause (Despido Justificado):

• No severance or notice required
• Must be based on serious misconduct defined in Labour Code
• Examples: theft, insubordination, repeated absences, breach of confidentiality

Termination Without Cause (Despido Injustificado):

• Requires severance payment
• Most common form of termination
• No specific reason needed, but cannot be discriminatory

Notice Period Requirements

The Dominican Republic does not require advance notice for termination. Instead, the system relies on severance payments:

• With cause: No notice or severance required
• Without cause: Immediate termination with severance payment
• Resignation: Employee should provide reasonable notice (typically 15 days)

Severance Pay

Severance is calculated based on length of service:

Additional payments upon termination:

• Accrued vacation pay
• Proportional Christmas bonus
• Any outstanding commissions or bonuses

Probationary Periods

• Duration: Up to 90 days
• Termination during probation: No severance required
• Extension: Not permitted beyond 90 days
• Benefits: Probationary employees receive full benefits and protections

Final Pay Requirements

Employers must provide final payment within:

• 10 days of termination for all accrued amounts
• Includes salary, vacation pay, proportional bonuses, and severance

Anti-Discrimination & Retaliation Laws

Termination is prohibited based on:

• Pregnancy or maternity leave
• Union membership or activities
• Filing labour complaints
• Race, gender, religion, political affiliation
• Disability (unless it prevents job performance)

Violations can result in reinstatement orders and additional compensation.

National Statutory Holidays

Regional Holidays

Some municipalities observe additional local patron saint days, but these are not nationally mandated.

Holiday Pay Rules

• Regular holidays: Employees receive regular pay without working
• Work on holidays: 2× regular pay rate
• Holiday falling on weekend: Monday becomes the observed holiday
• Eligibility: All employees, including part-time and probationary workers

Religious Observances

The Dominican Republic respects religious diversity:

• Catholic holidays are nationally observed
• Other religious observances may be accommodated through personal leave
• Employers should reasonably accommodate religious practices

Required Documents for Employment

Employment Contract Requirements:

• Job title and description
• Salary and payment terms
• Working hours and location
• Probationary period (if applicable)
• Termination clauses
• Benefits and vacation entitlements

Employee Documentation:

• Cédula de Identidad: National ID card (for Dominican citizens)
• Passport and work permit: For foreign employees
• Tax Registration Number (RNC): For tax purposes
• Social Security Number: For SDSS enrollment
• Bank account information: For salary deposits
• Educational certificates: If required for the position

Work Authorization Requirements

Dominican Citizens: No additional authorization required

Foreign Employees: Must obtain work permits through:

• Ministry of Labour
• Immigration Department
• Process typically takes 30-60 days
• Employer sponsorship usually required

Background Checks & References

• Criminal background checks: Permitted and commonly requested
• Employment verification: Standard practice
• Educational verification: Required for professional positions
• Credit checks: Limited to financial positions
• Employee consent: Required for all background investigations

Data Protection & Privacy

The Dominican Republic has data protection regulations requiring:

• Employee consent for data collection
• Secure storage of personal information
• Limited sharing of employee data
• Right to access and correct personal information
• Notification of data breaches

Social Security Registration

Employers must register employees with the Dominican Social Security System (SDSS) within:

• 30 days of employment start date
• Registration covers health insurance, pension, and labour risk insurance
• Employer receives contribution rates and payment schedules

Onboarding Timeline

What the EOR Handles

Borderless AI manages:

• Employment contract preparation and compliance
• Social Security registration and contributions
• Tax withholding and remittance
• Work permit assistance for foreign employees
• Payroll processing and local banking
• Labour law compliance monitoring

Worker Classification: Employee vs. Contractor

The Dominican Labour Code strictly regulates worker classification:

Employees (Trabajadores):

• Work under employer direction and control
• Receive regular salary and benefits
• Protected by labour laws and Social Security
• Subject to income tax withholding

Independent Contractors (Contratistas):

• Provide services independently
• Invoice for work performed
• Responsible for own taxes and Social Security
• Limited labour law protections

Classification factors:

• Level of control and supervision
• Integration into business operations
• Provision of tools and equipment
• Financial risk and independence
• Exclusivity of relationship

Misclassification can result in penalties, back payments for benefits and Social Security contributions, and potential labour disputes.

Unionization & Collective Agreements

The Dominican Republic recognizes workers' rights to organize:

• Union formation: Requires minimum 20 workers
• Collective bargaining: Protected right for unionized workers
• Strike rights: Legal with proper procedures and notice
• Union dues: May be deducted from payroll with employee consent
• Non-retaliation: Employers cannot discriminate against union members

Cultural Norms & Workplace Expectations

Dominican workplace culture emphasizes:

• Personal relationships: Building rapport is important for business success
• Respect for hierarchy: Clear organizational structures are valued
• Family priorities: Work-life balance and family obligations are respected
• Communication style: Generally warm and personal, with indirect feedback
• Punctuality: Business meetings typically start on time, though social flexibility exists

Anti-Discrimination Laws

The Dominican Constitution and Labour Code prohibit discrimination based on:

• Race, colour, or national origin
• Gender or pregnancy status
• Religion or political beliefs
• Age (with some exceptions)
• Disability (unless it prevents job performance)
• Union membership or activities

Enforcement: Ministry of Labour investigates discrimination complaints and can order remedies including reinstatement and compensation.

Remote Work Considerations

Remote work regulations in the Dominican Republic:

• Legal framework: Governed by standard employment laws
• Equipment: Employer typically provides necessary tools
• Working hours: Must comply with standard hour limitations
• Overtime: Remote workers entitled to overtime pay
• Health and safety: Employer responsible for safe working conditions
• Tax implications: Dominican tax residents pay local taxes regardless of work location

Cross-border considerations: Foreign companies employing Dominican remote workers may need local legal entity or EOR services for compliance.