#DominicanRepublic🇩🇴 #BDS_LaborAlert: Labor Code Reform Seeks to Address New Realities of the Dominican Labor Market

On August 26th, the much-anticipated reform of the Labor Code of the Dominican Republic was announced. This reform is the result of over two and a half years of negotiations, which led to a tripartite consensus among the government, employers, and labor unions, as highlighted by the Minister of Labor, Luis Miguel De Camps, in a press conference.

One of the main objectives of the amendments to the legal framework is to update labor regulations to strengthen social protection, adapt legislation to the new realities of the labor market, and promote the creation of quality jobs at fair wages.

Furthermore, the reform aims to foster economic growth for the benefit of not only the business sector, but also the workforce, while also expanding the enjoyment of rights and improving competitiveness.

Key Changes Introduced by the Reform

Among the announced changes is the enhancement of the Ministry of Labor's supervisory capabilities, with mechanisms for enforcing the 80/20 rule and improving its inspection capacities.

Additionally, telework, a result of the pandemic, will be formalized and incorporated into the Labor Code as a technological modality.

Other positive aspects for workers include the extension of paternity leave, allowing fathers to take four (4) working days off with full pay to care for their newborns, as well as the increase in vacation time by one additional day, providing for three weeks of rest, which will help balance work and family life.

The reform also addresses the need to guarantee the rights of domestic workers, incorporating their recognition into the draft bill.

Moreover, one of the most noteworthy aspects is the effort to reduce the over-litigation of labor relations, for purposes of preventing harmful conflicts for both parties. To this end, a genuine process of labor conciliation within the judicial system has been included, along with measures that facilitate payment for employers, allowing them to avoid the vexatious actions they currently face once a judgment is rendered against them.

Need for Review

The Labor Code was enacted in 1992 through Act 16-92. A year later, Regulation 258-93 was issued. Although it is acknowledged that this regulation was "very advanced at the time," Minister De Camps has stated that after more than three decades, it has become "important to revise it."

Javier A. Suárez, labor lawyer and partner at BDS Asesores Dominican Republic, was one of the main drafters of the new reform proposal.

The goal of this reform is "productivity, economic growth, and human development" for the Dominican nation. "That is the essential path," summarized Minister De Camps.

Once the labor reform comes into effect, we will provide more details on its implications for workplaces and the new obligations established for employers.

If you have any questions, please contact us.

 

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