WSG Article: Expected Changes To Dominican Republic’s Labor Law Likely To Rebalance Employer-Employee Relationship

Expected Changes To Dominican Republic’s Labor Law Likely To Rebalance Employer-Employee Relationship

September, 2014 - Luis Rafael Pellerano

In recent years, the Dominican Republic has enacted reforms affecting virtually every industry and every significant Dominican statute with one principal goal in mind: to enhance the rule of law for the benefit of Dominicans and investors - foreign and domestic alike. Thus, the Dominican Republic has amended everything from its corporate law to its tax law, has adopted a wide range of incentives to attract capital, and has made it clear that, simply put, the country invites and welcomes companies from around the world to do business here in a modern, free market economy that ensures profitability and competitiveness.

Now, the Dominican Republic is on the verge of another significant legislative development. By the end of this year, or by early next year, it seems likely that major amendments will be made to the Dominican labor law. Certainly, the changes will not affect the basic protections afforded to workers by Dominican la, just as workers in the United states and elsewhere are the beneficiaries of legislation enacted wit their interests in mind. The changes expected to be made to the Dominican labor law, however, are likely to alter the balance between workers, on the one had, and management on the other, with the result being a more favorable legal environment for employers.

This column highlights a number of the most important changes currently being discussed and explores the ramifications for foreign corporations doing business in the Dominican Republic if they are adopted.

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Expected Changes To Dominican Republic’s Labor Law Likely To Rebalance Employer-Employee Relationship

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