Paying 10% of business profit to 'casual' employees

rogerramjet1

New member
Sep 10, 2015
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Paying 10% of business profit to 'casual' employees

I know this was discussed recently but i'm not fully clear about my legal obligations in the following circumstance

example;
i own a business
i employ 1* 'casual' as opposed to a fully fledged 'full time employee
I hire her to work 20-40hrs per week


Am i obliged to share the 10% profit with her? i kindly ask that people not provide me information about what
is ethically right to do for my employees. Im purely interested in what the law says about this matter

thx
 

tamarindero

New member
Jul 20, 2016
22
0
0
Paying 10% of business profit to 'casual' employees

I know this was discussed recently but i'm not fully clear about my legal obligations in the following circumstance

example;
i own a business
i employ 1* 'casual' as opposed to a fully fledged 'full time employee
I hire her to work 20-40hrs per week


Am i obliged to share the 10% profit with her? i kindly ask that people not provide me information about what
is ethically right to do for my employees. Im purely interested in what the law says about this matter

thx

What law are you talking about??

Do you mean the 10 percent service charge??, if this is what your a reffering to yes you should pay your employees this 10 percent service charge(grauity).

This is not 10 percent on your profit, this is 10 percent on the tab that your customer has spent, that your employee happily served!!!

REMENBER THIS A HAPPY EMPLOYEE WILL MAKE A STUBBORN CUSTOMER VERY HAPPY!!!

Hasta luego!!.....
 

Mauricio

Gold
Nov 18, 2002
5,607
7
38
What law are you talking about??

Do you mean the 10 percent service charge??, if this is what your a reffering to yes you should pay your employees this 10 percent service charge(grauity).

This is not 10 percent on your profit, this is 10 percent on the tab that your customer has spent, that your employee happily served!!!

REMENBER THIS A HAPPY EMPLOYEE WILL MAKE A STUBBORN CUSTOMER VERY HAPPY!!!

Hasta luego!!.....

He's talking about the obligation of attributing 10% of your profit to your employees as a bonus. Nothing to do with the 10% service charge.

If your employee is an registered employee (paying TSS) you would need to pay the bonus.
 

tamarindero

New member
Jul 20, 2016
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He's talking about the obligation of attributing 10% of your profit to your employees as a bonus. Nothing to do with the 10% service charge.

If your employee is an registered employee (paying TSS) you would need to pay the bonus.

Ok, thanks for clarification!
 

cobraboy

Pro-Bono Demolition Hobbyist
Jul 24, 2004
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He's talking about the obligation of attributing 10% of your profit to your employees as a bonus. Nothing to do with the 10% service charge.

If your employee is an registered employee (paying TSS) you would need to pay the bonus.
True.

But this provision is a complete joke.

Unless your company is off-the-charts profitable, the net profit line can be easily and legitimately manipulated even with GAAP. My understanding is this is why the 13th salary was created: a mandated employee "bonus"---which really isn't. It's just another labor CoDB.
 

jefe de la finca

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Sep 28, 2012
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Always bear this in mind when dealing with the Labour Laws in the DR, They are weighted 99% in favour of the employee and with the other 1% the employee is given the benefit of the doubt.

A casual/part time worker is defined as working less than 29 hours/week. You need to have a contract with her that clearly states her working hours are a maximum of 29 hours a week Working up to 40 hours some weeks she could claim to be full time time ( read above ) and be entitled to all employee benefits, and you liable to employer taxes etc.

"Employers must grant participation equivalent to ten per cent of the annual net profits or dividends to all its workers contracted for an
indefinite time; such dividends may not exceed 45 to 60 days of salary for each worker". In answer to your question it would appear she is entitled to some bonus based on net profit. If she has less than 3 years with the company then the 45 days of salary rule applies, three years plus 65 days salary.

Ideally you should seek advice from a lawyer to avoid any potential problems in the future. Now read the first paragraph again and let it sink in.
 

Expat13

Silver
Jun 7, 2008
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So the important part here is the 10% of profits which maxes out at 45-60 days of their salary, correct?

This is for each employee? If you show no profit or very little are you still paying the equivalent 45-60 days, therefore it would also be the minimum?

Is this only for full time or also part time workers?
 

bob saunders

Platinum
Jan 1, 2002
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dr1.com
True.

But this provision is a complete joke.

Unless your company is off-the-charts profitable, the net profit line can be easily and legitimately manipulated even with GAAP. My understanding is this is why the 13th salary was created: a mandated employee "bonus"---which really isn't. It's just another labor CoDB.

I think the 13th salary was created to give people money to spend over the holidays and to stimulate the economy as well. As an employer it takes a big chunk out of any profit.
 

cobraboy

Pro-Bono Demolition Hobbyist
Jul 24, 2004
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I think the 13th salary was created to give people money to spend over the holidays and to stimulate the economy as well. As an employer it takes a big chunk out of any profit.
The two are not independent of each other.
 

jefe de la finca

New member
Sep 28, 2012
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So the important part here is the 10% of profits which maxes out at 45-60 days of their salary, correct?

This is for each employee? If you show no profit or very little are you still paying the equivalent 45-60 days, therefore it would also be the minimum?

Is this only for full time or also part time workers?

Each employee ( full or PT ) with a contract of employment is included. If an employee has been with you for over 3 months a contract of employment is deemed to exist even if nothing formally has been agreed. A contract of employment is recognized either in written form or verbally. Both have equal clout.

If you show no profit then there is nothing to pay out. Net profit is still profit regardless of the amount. For example, sticking to the letter of the law, if you make RD$1000 NP and have 10 employees ( full and PT ) then each should receive RD$100. If the NP is RD$1,000,000 then each should receive RD$10,000 but if their 45-60 days salary amounts to less then they receive that lesser amount. So the maximum payout for each employee is capped at 45-60 days salary and the minimum payout is based on how much net profit there is.


The 13th payment/Christmas bonus is a separate issue and is payable regardless of any profits. Both full and PT employees are entitled to it.
 

JD Jones

Moderator:North Coast,Santo Domingo,SW Coast,Covid
Jan 7, 2016
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