On October 10, 2024, the Minister of Labor, Luis Miguel De Camps, submitted the draft bill for the reform of the Labor Code (hereinafter the “LC”) to the Senate of the Dominican Republic. This sets a historic milestone in the country’s labor legislation, following years of discussions, unsuccessful reform attempts, and committee efforts that, despite submitting previous drafts, failed to advance through Congress.
As a member of the drafting team for this bill, it is an honor to have contributed to this collective effort. This collaborative work reflects not only a commitment to modernizing the labor legal framework but also to building a fairer and more efficient system for both employers and employees.
Among the proposals included in the bill are significant developments aimed at transforming the Dominican labor landscape:
- Strengthening the Ministry of Labor’s Supervisory Powers: New mechanisms are introduced to ensure compliance with essential provisions, such as the 80/20 rule for hiring national and foreign personnel. Furthermore, labor inspection capacities are reinforced, enabling more effective oversight and ensuring the protection of labor rights.
- Reduction of Labor Trial Duration: The bill proposes a significant reduction in the length of labor judicial processes, including the incorporation of an effective judicial conciliation process. This mechanism seeks to solve disputes more swiftly and with less disruption for both parties, while also offering flexible payment options for employers who often face challenges in complying with unfavorable rulings.
- Formalization of Telework: The pandemic accelerated the adoption of telework worldwide, advancing employment modalities by a decade. The bill acknowledges this reality by establishing clear rules for regulating telework, safeguarding the rights and responsibilities of both employers and employees.
- Increase in Paternity Leave: In an effort to promote equity and family-work balance, paternity leave is doubled from 2 to 4 working days with full pay, granting fathers more time to bond with their newborns.
- Additional Vacation Days: One additional vacation day is introduced to the LC’s existing provisions, fostering a healthier work-family balance and improving workers’ quality of life.
- Inclusion of Domestic Workers: For the first time, domestic workers are formally included in the LC, granting them most of the rights enjoyed by other employees. This measure represents a significant step forward in protecting a historically marginalized sector.
- Extended Work Shifts: This bill allows for extended work shifts of up to twelve hours per day, provided that the monthly average of hours worked per week does not exceed forty-four hours. Such agreements between employers and employees must comply with the following conditions:
A. The agreement must be signed by the company’s labor unions or, in their absence, by more than 50% of the affected workers.
B. Under this modality, overtime work is prohibited, and the schedule must be established in advance to ensure workers are aware of their shifts.
C. The agreement must be submitted in writing to the General Labor Office (GDL) within ten calendar days following its execution.
D. The GDL may verify compliance with these conditions and revoke the agreement in case of breach.
- Overtime Work Limitations: In cases of excessive workloads, overtime cannot exceed 120 hours per quarter, ensuring stricter controls to prevent abuse.
The path to the approval of this bill now lies with Congress, where it is expected that the tripartite agreements reached will serve as a foundation for a constructive debate. Meetings are already underway with the special commission, engaging government representatives, workers, employers, and key social sector stakeholders.
This reform is not only a technical and legal milestone, but also a commitment to a more equitable and sustainable future for the Dominican labor market. We are at a pivotal moment that demands the attention and engagement of all sectors to ensure these reforms lead to tangible improvements for our society.
Javier Suárez
Partner BDS Asesores