Employ Candidates Compliantly in
Dominican Republic

Talk to Expert

25

+ years of industry leadership

Global HR Compliance in the Dominican Republic

Hiring employees in the Dominican Republic can provide international employers with access to a bilingual workforce, competitive labour costs, and regional proximity to North and Central America. However, compliance with local labour law equires a deep understanding of how employment is regulated, administered, and enforced in practice.

Labour law in the Dominican Republic is codified under the Labour Code (Código de Trabajo), but enforcement is often selective, and informal hiring remains widespread in many sectors. For foreign employers, this creates a risk profile that differs from local companies: you are more visible, more likely to be audited, and expected to follow every legal step — including registrations, contributions, and documentation.

Acumen International enables you to hire talent in the Dominican Republic without opening a local entity. We act as the legal employer of record, assuming full responsibility for employment compliance, including employment contracts, tax, payroll, and social security , while you manage your team’s day-to-day performance and deliverables.

Whether you’re hiring for a single role, managing a programme across LATAM, or transitioning existing contractor relationships into formal employment, this guide outlines the regulatory and practical realities you need to understand.

Why Companies Hire in the Dominican Republic

Global employers engage talent in the Dominican Republic for several strategic reasons:

  • Regional presence: The country is a gateway between North, Central, and South America, with strong transport and telecom infrastructure
  • Skilled bilingual workforce: Common roles include customer service, finance operations, compliance support, and regional sales
  • Favourable labour costs: Lower total cost of employment compared to neighbouring Caribbean or Central American jurisdictions
  • High talent retention: Especially when employees are hired on formal contracts with proper benefits, reducing attrition common in freelance or platform-based arrangements
  • Flexible deployment: Suitable for both long-term employees and fixed-term project roles

But access to these advantages depends on maintaining full local compliance and understanding how local enforcement works in practice, not just on paper.

Employment Contracts and Legal Relationship

In the Dominican Republic, employment relationships are governed by the Labour Code, and are recognised as valid once service is rendered and payment is made, regardless of whether a contract is written. However, for foreign employers and EOR-based employment, written contracts are essential, especially for proving terms, documenting benefits, and managing disputes.

Contract types typically include:

  • Indefinite-term employment (most common and default model)
  • Fixed-term contracts (must be tied to a specific project or duration)
  • Seasonal or intermittent work (requires specific conditions to qualify)

All employment agreements should specify role, compensation, hours, benefits, termination conditions, and dispute mechanisms. Contract amendments must be made in writing, and verbal arrangements are not enforceable in court unless supported by proof of conduct.

Mandatory Registrations and Employer Setup

To legally employ staff in the Dominican Republic, employers must register with:

  • TSS (Tesorería de la Seguridad Social) for social security contributions
  • DGII (Dirección General de Impuestos Internos) for tax remittance
  • Ministry of Labour for employment oversight and inspections
  • INFOTEP for mandatory employer training fund contributions

Acumen handles all of these registrations on your behalf as part of the EOR arrangement, ensuring your employees are fully legal under local administrative requirements.

Working Hours, Leave, and Benefits

Standard Working Time

  • 8 hours per day, 44 hours per week maximum
    • Employees must receive at least 36 consecutive hours of weekly rest.
  • Night shifts (9:00 PM–6:00 AM) incur a 15% wage premium.

Overtime Pay

  • First 24 hours of weekly overtime: 35% premium
  • Beyond 24 hours: 100% premium
  • Public holidays or rest days: 100% premium

Paid Leave

  • Annual Leave: 14 working days after one year; increases to 18 days after 5 years
  • Maternity Leave: 12 weeks (6 before birth, 6 after), paid via social security
  • Paternity Leave: 2 working days
  • Sick Leave: Paid by social security; employer must file with proof of incapacity
  • Breastfeeding: 3 daily breaks of 20 minutes and 1 half-day per month for check-ups

Leave calculations must align with payroll and TSS filings. Non-compliance can result in penalties during inspections or benefit clawbacks.

Minimum Wage and Total Compensation

The Dominican Republic applies sector- and size-specific minimum wage bands, reviewed periodically by the National Wage Committee. Current minimums:

  • Free Trade Zone (FTZ) workers: RD$ 8,310/month
  • Non-FTZ private sector: Ranges from RD$ 7,843 to RD$ 12,873/month depending on company size
  • Public sector: RD$ 5,884/month minimum

In addition, employers must budget for:

  • Regalía Pascual (13th month bonus): Mandatory December bonus equal to one month’s wage
  • Social security contributions: Paid to TSS
  • Employer contributions to INFOTEP: For workforce training

Total employer cost can exceed gross salary by 20–30%, depending on contract type, benefit design, and wage level.

Probation and Termination Rules

Probation

A maximum 3-month probationary period may be applied. During this time, the employer may terminate employment without severance, but must still respect minimum wage, working hour, and benefit rules.

Notice Periods

  • 7 days: 3 to 6 months of service
  • 14 days: 6 to 12 months
  • 28 days: Over 1 year

Severance Pay (Preaviso and Cesantía)

  • Employees dismissed without cause are entitled to statutory severance:
    • 6 days’ wage (6–12 months)
    • 21 days’ wage per year (1–5 years)
    • 23 days’ wage per year (over 5 years)
  • Severance does not apply for resignation or dismissal with cause

Employers must formally notify the Ministry of Labour, submit a DGT form, and provide documentation supporting the termination. Failure to comply can result in back-pay obligations and litigation exposure.

Immigration and Foreign Talent

Foreign nationals must have a valid work visa or residency permit to be employed in the Dominican Republic. Informal arrangements or “off-the-books” compensation structures are not recognised by courts or immigration authorities.

As Employer of Record, Acumen supports:

  • Sponsorship of work permits
  • Processing of residency and visa documents
  • Compliance with quotas and reporting
  • Coordination with consular and local authorities

This ensures legal entry, correct contract matching, and audit-ready documentation for your expat workforce.

How Acumen International Helps You Hire in the Dominican Republic

Legal Employment Without a Local Entity

Acumen acts as your Employer of Record in the Dominican Republic, allowing you to hire staff without opening a company, registering for tax, or maintaining administrative infrastructure.

Compliant Employment Setup

We draft contracts aligned with the Dominican Labour Code, register employees with TSS and DGII, manage all tax and benefit filings, and ensure leave, overtime, and severance are calculated correctly.

Risk Mitigation Across Contract Types

Whether you’re hiring fixed-term, indefinite, or high-turnover roles, we build the legal foundation needed to avoid penalties, back pay, or employee misclassification issues.

Support for Local and Foreign Talent

We help you onboard Dominican nationals or sponsor foreign employees through compliant channels, managing both labour and immigration frameworks.

Transparent Cost Planning with the Global Payroll Calculator

Use Acumen’s Global Payroll Calculator to estimate employer costs, including salary, bonuses, social contributions, and tax liabilities. The GPC gives you clear visibility on total employment spend in the Dominican Republic before you commit to hiring.

Ready to hire in the Dominican Republic? Use the Global Payroll Calculator to plan your workforce costs or contact us to scope a compliant hiring solution tailored to your roles and risk profile.

One Partner for LATAM and Beyond

The Dominican Republic may be one of several markets in your LATAM expansion. Acumen supports global employment in 190+ countries, with unified contracts, standardised compliance processes, and a single point of contact.

Get Express Quote