Businessmen complain about the labor cost of employment

Santo Domingo—The business sector complained in its demand that the draft Labor Code reform sent for study in the Senate of the Republic needs to modify the severance. This is based on the fact that the longer an employee stays in the company, the more expensive it is at the time of dismissal.

The reference is based on the fact that the labor population that has accumulated 20 years or more implies a cost of 222.7% to 308.8% due to the accrued expenses in contributions to health insurance, pensions, labor risk, the contribution to the Professional Technical Institute (Infotep), Christmas salary, bonuses, and severance pay.

They say in their proposal for modifying the code that the more years a worker lasts in a company, the more expensive it is for the employer, without counting the 15.1% increase in Social Security Law 87-01.

Labor issues, claims, and demands date back many years but have become more acute in recent weeks in the country after the Executive Power sent to Congress, through the Senate, its proposal for modification, which, according to the Minister of Labor, is 98% agreed to and should be approved without changes, as it was presented.

These statements moved the businessmen who rejected its approval without including the pending issues, mainly unemployment.

Labor severance is contemplated in Article 80 of the country’s Labor Code and applies as an eventual protection when an employer unilaterally fires a worker without cause, taking into account the advance notice. Failure to do so is subject to a lawsuit and to pay an indemnity within ten days thereafter.

Eviction applies to severance. Dismissal does not occur when the employer’s fault is proven to the worker.

According to businessmen’s explanations, unemployment has become a limitation to increasing jobs, promoting labor formality, and promoting competitiveness.

Given the disagreement, they indicate that a large part of the 738 articles of the Labor Code have been agreed upon. However, the issues of unemployment and severance pay are still pending solutions, and they propose a limit of up to six months to compensate for the payment.

At present, the term for indemnity is up to 10 days. From now on, an additional charge will be paid for each day of non-compliance, a mechanism introduced as “astreinte.”

The business sector assures that in all its proposals, it respects the acquired rights of the workers. Therefore, the severance payment remains as it is, and the change it proposes is for the new contracts that arise from the approval of the labor reform.

The business sector complained in its demand that it is necessary to modify the severance in the project of reform to the Labor Code, sent to study in the Senate of the Republic, and sustains it in the fact that the longer an employee lasts in the company, the more expensive it is at the time of eviction.

The reference is based on the fact that the labor population that has accumulated 20 years or more implies a cost of 222.7% to 308.8% due to the accrued expenses in contributions to health insurance, pensions, labor risk, the contribution to the Professional Technical Institute (Infotep), Christmas salary, bonuses, and severance pay.

They say in their proposal for modifying the code that the more years a worker lasts in a company, the more expensive it is for the employer, without counting the 15.1% increase in Social Security Law 87-01.

Labor issues, claims, and demands date back many years but have become more acute in recent weeks in the country after the Executive Power sent to Congress, through the Senate, its proposal for modification, which, according to the Minister of Labor, is 98% agreed to and should be approved without changes, as it was presented.

These statements moved the businessmen who rejected its approval without including the pending issues, mainly unemployment.

Labor severance is contemplated in Article 80 of the country’s Labor Code and applies as an eventual protection when an employer unilaterally fires a worker without cause, taking into account the advance notice. Failure to do so is subject to a lawsuit and to pay an indemnity within ten days thereafter.

Eviction applies to severance. Dismissal does not occur when the employer’s fault is proven to the worker.

According to businessmen’s explanations, unemployment has become a limitation to increasing jobs, promoting labor formality, and promoting competitiveness.

Given the disagreement, they indicate that a large part of the 738 articles of the Labor Code have been agreed upon. However, the issues of unemployment and severance pay are still pending solutions, and they propose a limit of up to six months to compensate for the payment.

At present, the term for indemnity is up to 10 days. From now on, an additional charge will be paid for each day of non-compliance, a mechanism introduced as “astreinte.”

The business sector assures that in all its proposals, it respects the acquired rights of the workers. Therefore, the severance payment remains as it is, and the change they propose is for the new contracts that arise from the approval of the labor reform.

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Data

According to businessmen, labor informality in the country is 56.2%, above the average of the Latin American region. Labor turnover is 5.5 years in the country, while it is 7.6 years in the area.

In the country, 59.6% of the population is young (up to 35). They highlighted discouraging projections in the global unemployment rate and growth in labor turnover, according to international organizations, as well as skills.

They also proposed a six-year cap on unemployment benefits and a 10-year cap on the base salary used to calculate these benefits.