{"id":218480,"date":"2024-06-24T07:31:58","date_gmt":"2024-06-24T11:31:58","guid":{"rendered":"https:\/\/dr1.com\/news\/?p=218480"},"modified":"2024-06-24T08:06:15","modified_gmt":"2024-06-24T12:06:15","slug":"management-wants-to-get-rid-of-dismissal-payments","status":"publish","type":"post","link":"https:\/\/dr1.com\/news\/2024\/06\/24\/management-wants-to-get-rid-of-dismissal-payments\/","title":{"rendered":"Management wants to get rid of dismissal payments"},"content":{"rendered":"\n
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The term \u201ccesantia\u201d is, in the context of Dominican labor laws, one of the thorniest issues on the table every time that new talks regarding wage increases are undertaken. The word literally translates to \u201cend to employment\u201d but in the Dominican context, it is much more. In reality, it means a payment to a worker who is being fired, dismissed, or even retired. It consists, in the simplest of terms, of one month\u2019s salary for every year or part of a year of employment.<\/p>\n\n\n\n

A five-year worker would receive five months of his salary, plus two weeks of salary, upon dismissal.<\/p>\n\n\n\n

Of course, management wants to get rid of this sort of compensation, but the Dominican Republic has no unemployment insurance as yet. The payment also compensates for the ridiculously low pension plan retirement levels in place in the Dominican Republic. For many, the severance payments are their real retirement plan. <\/p>\n\n\n\n

All of the union and worker\u2019s representatives are adamant about preserving this feature of the Labor Code. Rafael-Pepe-Abreu, the head of the National Confederation of Union Solidarity (CNUS), told reporters that ever since discussions began on reforms to the Labor Code, management has been trying to get the cesantia removed.<\/p>\n\n\n\n

There are many proposals to limit or remove it all together. One of these is to improve workers\u2019 pensions, which has always been a constant in the talks between the government, the unions and management.<\/p>\n\n\n\n

There are other issues pending inclusion in any reforms to the Labor Code. Among these is the inclusion of those who work for services such as Uber or delivery services and those who work from home.<\/p>\n\n\n\n

Yet another issue is the real level of the wages received and the proportion of these wages that go into a pension fund. And finally, there is the level of what is called the \u201cinformal\u201d sector, where no taxes are paid, no contributions to pension funds are collected, and no health insurance contributions are received.<\/p>\n\n\n\n

From the employer side, the relatively high level of severance payments is a deter to creating more jobs and at the same time an incentive to hire consultants, increase bonuses and engage in other schemes to avoid accumulating hefty severance payments. <\/p>\n\n\n\n

The talks continue.<\/p>\n\n\n\n

Read more in Spanish:
Diario Libre <\/a><\/p>\n\n\n\n

24 June 2024<\/p>\n","protected":false},"excerpt":{"rendered":"

The term \u201ccesantia\u201d is, in the context of Dominican labor laws, one of the thorniest issues on the table every time that new talks regarding wage increases are undertaken. The word literally translates to \u201cend to employment\u201d but in the Dominican context, it is much more. In reality, it means a payment to a worker … <\/p>\n

Read more\u2026<\/a><\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":[],"categories":[330,3],"tags":[],"_links":{"self":[{"href":"https:\/\/dr1.com\/news\/wp-json\/wp\/v2\/posts\/218480"}],"collection":[{"href":"https:\/\/dr1.com\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/dr1.com\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/dr1.com\/news\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/dr1.com\/news\/wp-json\/wp\/v2\/comments?post=218480"}],"version-history":[{"count":7,"href":"https:\/\/dr1.com\/news\/wp-json\/wp\/v2\/posts\/218480\/revisions"}],"predecessor-version":[{"id":218527,"href":"https:\/\/dr1.com\/news\/wp-json\/wp\/v2\/posts\/218480\/revisions\/218527"}],"wp:attachment":[{"href":"https:\/\/dr1.com\/news\/wp-json\/wp\/v2\/media?parent=218480"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/dr1.com\/news\/wp-json\/wp\/v2\/categories?post=218480"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/dr1.com\/news\/wp-json\/wp\/v2\/tags?post=218480"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}