Employers and workers unable to reach consensus on severance pay

Santo Domingo.- The Pontifical Catholic University Madre y Maestra (PUCMM) recently hosted a Forum on Labor Reform, bringing together union leaders, business representatives, government officials, and academics. The forum focused on discussing proposed legislative changes to the Dominican Labor Code. PUCMM Rector, Reverend Secilio Espinal, emphasized the importance of dialogue in reaching consensus. One key topic of debate was Article 80 of the Labor Code, which mandates severance pay for workers dismissed after five years of service, but the current proposal left this provision unchanged.

Laura Peña Izquierdo, president of the Employers’ Confederation of the Dominican Republic (Copardom), explained that the proposed reforms aim to create a more favorable environment for micro and small enterprises (MSMEs), while maintaining severance pay. The Employers’ Association’s proposal focuses on simplifying procedures, adjusting work hours, and reducing employment-related costs. César Dargam, executive vice president of Conep, highlighted the decade-long efforts for reform and called for exploring new labor models that benefit both workers and businesses. However, concerns were raised by Manuel Ramón Herrera Carbuccia, president of the Academy of Sciences, about the potential lack of judges for labor disputes under the new system.