Hiring in Dominican Republic

The contract sets out role, salary in DOP, working time, leave, notice and any restrictive covenants. The EOR is the counterparty to the employee, which is what removes the need for your own entity.

Spanish is the standard contract language, and bilingual Spanish and English versions are common for commercial roles.

Contracts are presumed indefinite. Fixed-term contracts are permitted only where the nature of the work justifies them, so most EORs default to indefinite terms.

Notice and severance start to accrue from month three, whatever the contract says. A contractual probation clause cannot stretch that window.

Some EORs set an internal review before the 3-month mark because they, not you, carry the dismissal risk. Ask before you agree a start date.

Night work between 9pm and 7am carries a 15% premium, and work on the weekly rest day or a public holiday is paid at double.

Managerial roles sit largely outside the overtime rules, so for senior hires overtime becomes a contractual matter rather than a statutory one. Put the position in writing either way.

Shorter service earns a pro rata entitlement. Law 139-97 moves several public holidays to a Monday each year, so plan around the Labour Ministry calendar.

Sick pay comes from social security from day four, at 60% of contributory salary for outpatient treatment and 40% in hospital. Maternity leave is 14 weeks, also funded by social security, and paternity leave is 2 days. Contributory salary is capped, so confirm whether the EOR tops up higher earners.

Either side may end an indefinite contract without cause, known as desahucio, on notice or pay in lieu. Severance (cesantía) follows a fixed statutory formula, from 6 days' salary after three months up to 23 days per year of service after five years.

The EOR runs the process as the legal employer and must notify the Labour Ministry within 48 hours. Notice pay and severance are due within 10 days, with a penalty of one day's salary for every day late, and unused leave and the pro rata Christmas salary go into the final settlement. Dismissal for cause avoids severance only if the cause is proven and notified on time, so keep a documented reason.

Employees choose their own health insurer (ARS) and pension fund (AFP). Complementary medical cover, dental and group life are common for professional roles even though they are not mandatory.

EORs often bundle benefits through a group scheme. Ask what is included in the fee, what is billed on top, and how the EOR treats the 10% profit share, which is capped at 45 or 60 days' salary by tenure.

Employer contributions add around 16.4% on top of gross salary, including the 1% INFOTEP training levy. The occupational risk element varies by sector and the pension and health bases are capped. That is before the EOR fee. A revised income tax scale with a 27% top rate takes effect in 2027.

The Christmas salary is the trap. One twelfth of the year's ordinary salary is due by 20 December. Statute caps it at five minimum wages, but market practice is a full month's pay, so budget 13 salaries, not 12.

Ask whether the EOR sponsors directly or refers to a partner. A partner-model EOR often cannot sponsor at all, and the 80/20 rule, which requires 80% of staff and 80% of payroll to be Dominican, applies to the sponsor, not to you.

Set start dates after approval, not before.

Get the data processing terms in the service agreement, not just the privacy notice. A broader data protection bill is before Congress and would add a dedicated regulator, so expect the rules to tighten.

Ask where payroll data is hosted and who in the partner chain can see it.

Incorporation means registering with the mercantile registry, the tax authority (DGII), the TSS and the Labour Ministry. The running cost is the point: accounting, monthly DGII and TSS filings and Labour Ministry reporting set an annual floor, and your own entity takes on the 80/20 quota and the profit share.

Permanent establishment risk is about what people do, not where payroll sits. Revenue-generating activity can create exposure regardless of the employment route.