An employment contract within a company is an agreement between the employer and the employee, where the latter offers their services under the control and supervision of the former in exchange for financial compensation, known as a salary.
What is an Employment Contract?
The Labor Code of the Dominican Republic defines it in its first article as follows:
An employment contract is one where a person agrees, in exchange for compensation, to provide personal service to another, under the immediate or delegated supervision and direction of the latter.
The Dominican Labor Code establishes the types of employment contracts in the Dominican Republic, which we will detail later.
In this article, we will discuss the duration of employment contracts and the ways in which different types of employment contracts can be executed in the Dominican Republic.
The key elements of an employment contract are:
- The provision of a service.
- Legal subordination.
- Compensation.
Documents Required to Hire an Employee
- Resume.
- Educational certificates.
- Employment certificates.
- References.
What Information Should an Employment Contract Contain?
- Identification and address of the parties.
- Service or work the employee will perform.
- Place and work schedule.
- Salary.
- Payment method and period.
- Duration of the contract.
Some of these benefits include old-age insurance, maternity insurance, occupational risk insurance, among others.
Our legal team is available to assist you in drafting any of these contracts and others.
Classification of Employment Contracts:
Types of employment contracts and their most important characteristics:
They can be classified according to their duration (permanent, fixed-term, or project-based), by their form (verbal or written), by the nature of the employment relationship (individual or collective), among others (seasonal, temporary, and occasional work).
Permanent Employment Contract:
It is defined as the most common type of contract. In this type of contract, the employee provides their services continuously, working all business days, resting only on days authorized by law or mutually agreed upon by both parties.
Its continuity is understood as indefinite, without a specific end date for the contract.
Fixed-Term Employment Contract:
This is an exception contract, with a specific duration. According to the law, fixed-term employment contracts can only be established in the following cases:
- If it is in accordance with the nature of the service to be provided.
- If it is intended to temporarily replace an employee, due to vacations or any other temporary impediment.
- If it is in the interest of the employee.
Any fixed-term employment contract that does not meet these requirements will be considered a permanent contract.
Project-Based Contract:
The project-based contract must be written and can only be used for a specific project or service when the nature of the work requires it. This type of contract ends without liability for either party.
If an employee works successively with the same employer on more than one specific project, it is presumed that there is a permanent employment contract between them. Successive work is considered when an employee begins working on another project of the same employer within a period not exceeding two months after the previous one has been completed. This is generally used in the construction industry.
Verbal Contract:
A verbal contract is one where the terms and obligations of the parties are not documented in writing. This type of contract has the same validity as a written contract and is widely used.
It should be noted that fixed-term or project-based employment contracts must be written.
Written Contract:
It is used in the cases we discussed earlier, but also for contracts with high-level employees, technicians, or highly skilled workers.
They must contain the minimum specifications required by law and must be signed by both parties. Four original copies must be made, two for each party, and the other two must be submitted by the employer to the Ministry of Labor.
Individual Contract:
This is the most common type of contract, made with a single employer.
Collective Contract:
This is made between an employer and a group of employees, represented by a team leader, and is not considered on an individual basis but as a group that constitutes a unit (orchestra, organization). Each member also has an individual contract with the employer who engages the group.
Seasonal Contract:
These contracts are used in the sugar industry and are considered indefinite-term workers, subject to the rules established in case of dismissal, unless otherwise provided by law or collective agreement. The periods of service and seasons are accumulated for certain worker rights.
Temporary Contract:
This contract is used for jobs that, by their nature, only last part of the year, and expire without liability for either party at the end of the season.
If the work extends for more than four months, the worker is entitled to the financial assistance established in Article 82 of the Dominican Labor Code.
Occasional Contract:
These are known as mobile contracts. They occur when the work is intended to temporarily intensify production or respond to unforeseen circumstances of the company.
It ends without liability for either party if the termination of services occurs within three months from the start of the contract. Otherwise, the employer must pay the worker the severance pay established in Article 80 of the Dominican Labor Code.
As we can see, there are several particularities of an employment contract in the Dominican Republic. When making a hire, it is ideal to have professional advice.
