Business sector proposes longer periods for employee severance payments

Business sector proposes longer periods for employee severance payments
August 29, 2025

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Business sector proposes longer periods for employee severance payments

Santo Domingo.-  The Dominican business sector has proposed extending the current 10-day deadline for employee benefits payments to two or three months, with the possibility of prorated installments, especially for high severance amounts. Employers also suggested that fines for labor violations be less severe for small businesses to prevent bankruptcies, as penalties of millions of pesos could disproportionately affect them.

Other proposals include extending the worker trial period from three to six months, particularly for positions requiring specialized skills that involve lengthy training. Employers also suggested calculating severance pay based on average salaries and establishing a cap. The committee is considering these points, along with previously approved measures for domestic worker benefits, mediating judges for labor disputes, and including “sexual orientation” protections in the Labor Code.

The special Senate committee will meet next week to vote on these proposals. Recent discussions brought together representatives from unions and business associations to address sensitive issues such as unemployment benefits, formalization of the labor market, and digitalization of procedures, as part of the ongoing reform of the Labor Code.

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