Christmas Bonus and severance to paid to "legal expats" working in the country?

botemon

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Jun 28, 2008
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Hi folks. I can’t seem to find the answer to this question. I know about the Christmas bonus and severance required to be paid to Dominican Citizen employees. But how about expats with legal residencea, OR citizens from other countries (with a work permit) working in the DR? Do the same rules apply? So for instance, if my company hires a local LEGAL expat, do I still have to pay severance and Christmas bonus? I though not…..but maybe I’m wrong! Thanks in advance!!! Cheers
 

bob saunders

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Jan 1, 2002
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Hi folks. I can’t seem to find the answer to this question. I know about the Christmas bonus and severance required to be paid to Dominican Citizen employees. But how about expats with legal residencea, OR citizens from other countries (with a work permit) working in the DR? Do the same rules apply? So for instance, if my company hires a local LEGAL expat, do I still have to pay severance and Christmas bonus? I though not…..but maybe I’m wrong! Thanks in advance!!! Cheers
Why not, the same rules apply to anyone legally working in the Dominican Republic for a Dominican company.
 

botemon

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Jun 28, 2008
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Thanks Bob. This would be a US company with a "field office" in the DR. In the years I have spent here, I have talked with other US citizens with no work permit or resedencia performing "project work" here for their US companies. I'm helping to staff an engineering project here with mostly "local talent", expats with resedencia and at least one with nothing. The "rates with PD (expenses) would be considered very very good..... comparatively speaking if you know what I mean. I know that an attorney will be required, but we are just trying to put together the bid pricing right now. Respectfully.
 
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william webster

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Bob is right
These are Labor Laws and key to the job regardless of male/female, color, age, etc
All full time employees............. that's my understanding
 
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aarhus

Long live King Frederik X
Jun 10, 2008
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I think key is how you work with them. They can be independent contractors like freelancers. But you can’t then have them come to an office and work fixed ours under your management.
 
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SKY

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Apr 11, 2004
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Does not matter who you are or where you came from. The law applies to anyone working legally. We had an American working in the casino at the Hard Rock for many years on a high end job. He was terminated and received over $30,000 US...............
 

pinonuevo

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Dec 7, 2020
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Roman
Companies must abide by the labour laws of the land.
Sometimes even within the united states every state has different labour requirements such as different rates of tax retention for both Employers and Employees as well as unemployment insurance.....

Taxbox.net
 
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JD Jones

Moderator:North Coast,Santo Domingo,SW Coast,Covid
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I think key is how you work with them. They can be independent contractors like freelancers. But you can’t then have them come to an office and work fixed ours under your management.

Correct. They frown on contractors with 44 hr wkly jobs. That's not what a contractor does.

I've worked on the island for close to 50 years and have always received the same benefits as everyone else.
 

botemon

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Jun 28, 2008
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I think ya'll answered my question! Its not that we did not want to pay bonus and severance, it was about weather we were required to. I have had an employee working for me and the wife for 14 years and always paid those things....and more. Thanks all for the feedback!!!
 
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aarhus

Long live King Frederik X
Jun 10, 2008
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I think key is how you work with them. They can be independent contractors like freelancers. But you can’t then have them come to an office and work fixed ours under your management.
If I was to start a business now in the DR I would start a business where I didn’t need an office and just work with independent contractors.
 

botemon

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Jun 28, 2008
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If I was to start a business now in the DR I would start a business where I didn’t need an office and just work with independent contractors.
That's exactly what I am going to do! Except the "technical contractors" will be at a "project site". windeguy. Are you still in the "water busyness"? Cheers!
 

Fabio J. Guzman

DR1 Expert
Jan 1, 2002
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Dominican labor laws are territorial in nature. Any work carried out on Dominican soil is subject to the provisions of the Labor Code irrespective of the nationality or residence of the parties involved.
 
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windeguy

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Dominican labor laws are territorial in nature. Any work carried out on Dominican soil is subject to the provisions of the Labor Code irrespective of the nationality or residence of the parties involved.
That was as I understood it.

They really should change those laws.
 

windeguy

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Jul 10, 2004
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Why?..........

It was stated that the laws in question are for all people working. I have no problem with such benefits paid to anyone legally in the DR. However:

The laws should be changed so that if someone is working illegally in the country they should be deported, not able to file claims for any reason against an employer. The employer should also be fined for hiring illegals and not be paying settlements to illegal aliens.

But wait, I suspect those laws already exist. If they don't exist, they should and they should be enforced instead of sending mixed signals.

That is why.
 
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Auryn

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Apr 22, 2012
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Dominican labor laws are territorial in nature. Any work carried out on Dominican soil is subject to the provisions of the Labor Code irrespective of the nationality or residence of the parties involved.
What about foreign hires working full time on contract?