DOMINICAN REPUBLIC Law and Practice Contributed by: Sarah de León Perelló, Elizabeth Silfa Micheli and Naomi Rodríguez Manzueta, Headrick Rizik Álvarez & Fernández
Collective Bargaining Agreements Collective bargaining agreements may establish more favourable conditions for the workers, which are deemed to be included in and automatically modify the individual employment contracts. 4.2 Characteristics of Employment Contracts Employment agreements can be concluded verbally or in writing. Labour agreements for a determined period of time or for a specific project need to be executed in writing. Pursuant to the Dominican Labour Code, an employment contract is one whereby a person under - takes to render a personal service to another, under their immediate or delegated dependence and direc - tion, in exchange for a remuneration. The duration of employment contract is regulated as follows:
also be jointly and severally liable for the entity’s tax debts, in cases of negligence, up to the limit of their investment (equity). Moreover, Law No 24-25 intro - duces joint and several tax liability for companies within the same economic group when the group is deemed to have been created solely for the purpose of evading tax obligations. The Labour Code also includes a provision for pierc - ing the corporate veil in the case of companies that constitute an economic group where fraud is involved. When there are one or more companies that are under the direction, control or administration of other com - panies or that constitute an economic group, then all companies will be jointly and severally liable with respect to the labour obligations of its employees in the event of fraud. Since the Dominican Republic is a civil law jurisdic - tion, the nature of legal rules governing the employ - ment relationship are mainly statutory. The Domini - can labour law regime is governed essentially by the Labour Code and resolutions issued by administrative labour authorities. Case law is used to interpret and further clarify labour law provisions but are subordi - nate to the same. The provisions of the Dominican Labour Code are public policy, and therefore any contractual clauses and legal provisions contrary to the same are con - sidered to be void and without effect. Hence, internal labour handbooks and employment agreements are valid, provided they do not contravene the Labour Code. An employment agreement does not have to be in writing (except for labour agreements for a deter - mined period of time or for a specific project), but proven by the facts, which is what prevails. 4. Employment Law 4.1 Nature of Applicable Regulations The Labour Law Regime Dominican labour law is territorial and applies to all employees that work in Dominican territory, whether they are foreign or national, even if they have been hired in a foreign country.
• for an indefinite time; • for a limited time; or • for a specific job or service.
All labour contracts are presumed to be made for an indefinite time period. Contracts for a limited time and for a specific job or service can only be entered into when the nature of the work requires it and/or under the conditions foreseen by the Dominican Labour Code. The existence of an employment contract is presumed (until proven to the contrary) in any personal employ - ment relationship. The employment contract may be purely consensual in nature, the validity of the verbal agreement is established by law, and practice is con - sistent with this criterion since the simple agreement of the parties is sufficient for an employment relation - ship to take place. Under the Labour Code what prevails are the facts over what is in writing; thus, what prevails is not the employment contract that is made in writing, but the one that is executed according to the facts, which will allow the establishment of the nullity of any contract in which the parties have proceeded in simulation or fraud of labour laws.
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