Employer of Record in Dominican Republic

An Employer of Record, or EOR, is a company that legally hires employees on your behalf in the Dominican Republic. This means you can build a team in the country without setting up a local entity. The EOR handles all the legal and HR work that comes with employment. This includes payroll, taxes, benefits, and making sure you follow local labor laws. You manage your team's day to day work, while the EOR takes care of the administrative side. An EOR like Rivermate can simplify your expansion.

How an Employer of Record (EOR) Works in Dominican Republic

Using an EOR to hire in the Dominican Republic is a straightforward process. It allows you to onboard new talent quickly and correctly.

1. You Find the Talent. You recruit and select the person you want to hire in the Dominican Republic.
2. The EOR Hires Them. The EOR legally hires the employee on your behalf. They draft a compliant employment contract that follows Dominican labor laws.
3. Onboarding Starts. The EOR manages the entire onboarding process. They make sure all the necessary paperwork is completed correctly.
4. HR and Payroll are Managed. The EOR handles all HR tasks. This includes processing payroll, withholding taxes, and managing social security contributions.
5. You Manage Your Employee. You direct your employee's daily tasks and responsibilities. They are a part of your team, contributing to your business goals.
6. Ongoing Compliance is Ensured. The EOR stays up to date with any changes in Dominican labor laws. This keeps your business compliant and reduces risk.

Benefits of Using an EOR for Hiring in Dominican Republic

Using an EOR gives you a simple and effective way to grow your team in the Dominican Republic. It removes the usual challenges of international hiring so you can concentrate on your business. An EOR handles the complexities of local labor laws and HR administration for you.

• Enter the Market Faster. You can hire employees and start operating in weeks, not months. This is much faster than setting up a legal entity in the country.
• Ensure Legal Compliance. EORs are experts in Dominican labor law. They manage all legal requirements, from employment contracts to termination procedures, reducing your risk of non-compliance.
• Save Time and Money. You avoid the high costs and administrative work of establishing a local company. An EOR handles HR and payroll, which saves you from building an internal department for it.
• Offer Competitive Benefits. An EOR can provide your employees with statutory benefits like health insurance and social security.
• Focus on Your Business. With the EOR managing employment administration, you can focus on your core business activities and managing your team.

Rivermate's transparent pricing model eliminates complexity with a single, competitive monthly fee per employee. Unlike traditional PEO providers, our pricing in Dominican Republic includes comprehensive HR support, benefits administration, compliance management, and access to our proprietary dashboard for real-time workforce analytics. No hidden costs, no setup fees—just straightforward pricing that scales with your business needs while ensuring full legal compliance in Dominican Republic.

Hiring in the Dominican Republic comes with its own set of rules. The local Labor Code is protective of employees, so it is important to get the details right. Understanding the local employment landscape helps you build a strong team and avoid legal issues. This guide breaks down the key things you need to know.

Employment contracts & must-have clauses

While you can make a verbal agreement, a written contract is always the best approach. It provides clarity for both you and your employee. The Dominican Republic has a few types of employment contracts, but the most common is the indefinite contract. Fixed-term contracts are also available for specific projects or temporary work.

No matter the type, your employment contracts should include these key details:

• Your company and the employee's information: Full names, addresses, and identification numbers.
• Job details: A clear description of the role and responsibilities.
• Start date: The official first day of employment.
• Work location: Where the employee will be based.
• Working hours: The expected daily and weekly schedule.
• Salary and payment: The agreed-upon wage and how and when it will be paid.
• Contract length: State if the contract is for an indefinite or fixed term.

Probation periods

You can have a probation period to see if a new hire is a good fit. In the Dominican Republic, this period can be up to three months. During this time, you can end the contract without the same obligations as a permanent employee.

Working hours & overtime

The standard workweek is 44 hours, typically eight hours a day. Anything beyond that is overtime. The pay for overtime is higher than the regular hourly rate.

Here is a simple breakdown of overtime pay:

Public & regional holidays

The Dominican Republic has a number of public holidays. Employees get this time off with pay. Some holidays have fixed dates, while others are movable.

Here are the public holidays for 2025:

• January 1: New Year's Day
• January 6: Three Kings' Day
• January 21: Our Lady of Altagracia Day
• January 26: Juan Pablo Duarte Day
• February 27: Independence Day
• April 18: Good Friday
• May 1: Labor Day (often observed on the closest Monday)
• June 19: Corpus Christi
• August 16: Restoration Day
• September 24: Our Lady of Mercy Day
• November 6: Constitution Day (often observed on the closest Monday)
• December 25: Christmas Day

Keep in mind that some regions have their own local holidays and festivals that can affect business operations.

Hiring contractors in Dominican Republic

You can also hire independent contractors. This can give you more flexibility. Contractors manage their own taxes and social security contributions, which can simplify things for you.

However, it is very important to classify workers correctly. If a contractor is treated like an employee, they could be legally considered one. This is called misclassification and can lead to penalties, back pay, and other legal problems.

An Employer of Record (EOR) can help you avoid these risks. An EOR can help you correctly classify your workers. If you want to hire someone as a full-time employee, an EOR can handle all the legal and HR tasks. This includes payroll, benefits, and making sure you follow all local labor laws. It is a straightforward way to hire in the Dominican Republic without setting up your own local entity.

Navigating compensation and payroll in the Dominican Republic requires a clear understanding of local regulations. You need to know the rules for things like pay schedules, minimum wages, and overtime. It is also important to understand the tax system for both employers and employees. Staying compliant with these laws is key to operating smoothly in the country.

Payroll cycles & wage structure

You can pay your employees monthly, bi-weekly, or semi-monthly. The standard work week is 44 hours, typically eight hours per day. While both verbal and written employment contracts are allowed, it's a good practice to have a written agreement.

A unique aspect of compensation in the Dominican Republic is the mandatory profit-sharing. You must distribute 10% of your company's annual net profits among your employees. Another common practice is paying a 13th-month salary, also known as the Christmas bonus, which is due by December 20th each year.

Overtime & minimums

When employees work beyond the standard 44-hour week, you must pay them overtime. The rate depends on when the overtime occurs.

• Standard Overtime: For hours worked between 44 and 68 hours a week, the pay rate is 135% of the regular wage.
• Extended Overtime: For any hours worked beyond 68 hours a week, the rate increases to 200%.
• Night Shift Overtime: Work performed during the night shift (9 p.m. to 7 a.m.) is paid at 115% of the regular rate.
• Holiday & Weekend Overtime: Overtime on weekends or public holidays is paid at 200% of the regular wage.

Minimum wage in the Dominican Republic varies based on the size and annual sales of your company.

Employer taxes and contributions

As an employer, you are responsible for several payroll contributions. These are calculated as a percentage of the employee's salary.

Employee taxes and deductions

Employees also contribute to social security from their salaries.

In addition to these deductions, employees are subject to a progressive income tax. The amount of tax depends on their annual earnings.

In the Dominican Republic, employee benefits and leave are a mix of government-mandated requirements and customary additions. The Labor Code sets the foundation for what you must provide. This includes paid time off for vacations, various life events, and contributions to social security. Understanding these rules is key to staying compliant and attracting good people.

Statutory leave

The Dominican Republic's Labor Code outlines several types of required paid leave.

• Vacation: After one year of service, employees get 14 working days of paid vacation. This increases to 18 days after five years with the same company. You must pay the employee for their vacation time before their leave begins. Vacation time generally cannot be broken into periods of less than a week.
• Maternity Leave: Female employees receive 14 weeks of paid maternity leave. This is usually taken as seven weeks before the birth and seven weeks after. Both the employer and the social security system share the cost of this pay.
• Paternity Leave: Fathers are entitled to two days of paid leave after the birth of their child.
• Sick Leave: Employees can get up to 26 weeks of sick leave a year. Compensation during this time comes from the social security system, not the employer directly. This typically covers 60% of their regular wage.
• Marriage Leave: Employees are entitled to five days of paid leave when they get married.
• Bereavement Leave: In the event of the death of a grandparent, parent, child, or spouse, an employee receives three days of paid leave.

Public holidays & regional holidays

There are 12 public holidays in the Dominican Republic.

Typical supplemental benefits

While the law sets minimums, many companies offer more to attract and keep talent. Here’s a look at what is required versus what is commonly offered as an extra perk.

How an EOR can help with setting up benefits

Setting up a compliant benefits package in a new country can be complex. An Employer of Record (EOR) simplifies this process for you.

An EOR already has a legal entity in the Dominican Republic. They understand the local laws and market norms for benefits. This means you don't have to spend months figuring out legal requirements and what competitive benefits packages look like.

Here's how an EOR helps:

• Ensures Compliance: They make sure your benefits offerings meet all legal requirements under the Dominican Labor Code.
• Saves Time: You avoid the lengthy process of setting up a local entity and researching benefits regulations.
• Offers Competitive Packages: They can advise on what benefits are common in your industry to help you attract top talent.
• Manages Administration: An EOR handles the day-to-day tasks of managing payroll, benefits, and leave for your employees.

Using an EOR allows you to quickly and confidently hire in the Dominican Republic, knowing your team is taken care of and your business is compliant.

When an employment relationship ends in the Dominican Republic, you need to follow specific rules. The process depends on whether you or the employee ends the contract, and if there is a valid reason for the termination. Dominican labor law provides strong protections for employees. This means you must handle every step correctly to stay compliant.

Notice periods

If you decide to terminate an employee without a specific cause, you must provide advance notice. This is called "desahucio". The length of the notice period depends on how long the employee has worked for you.

You must give this notice in writing to the employee. You also need to inform the local Department of Labor within 48 hours. During the notice period, the employee gets two paid half-days off each week to look for a new job.

If you do not provide notice, you must pay the employee their salary for the notice period.

Severance pay

When you terminate an employee without a just cause, you must pay severance. The amount of severance pay is based on the employee's length of service.

If you terminate an employee for a "just cause" listed in the Labor Code, you do not have to pay severance or provide a notice period. However, you must be able to prove the reason for termination. You still need to notify the employee and the Ministry of Labor in writing within 48 hours of the termination.

How Rivermate handles compliant exits

Navigating employee terminations in another country can be complex. At Rivermate, we ensure every offboarding process is handled correctly and in full compliance with Dominican law.

We manage all the necessary steps for you:

• Documentation: We prepare and deliver all required notices to the employee and the labor authorities.
• Calculations: We accurately calculate all final payments, including severance, accrued vacation, and any other benefits.
• Compliance: We make sure every termination follows the strict procedures of the Dominican Labor Code to protect you from legal risks.

With Rivermate, you can manage your team with confidence, knowing that even the difficult steps like terminations are handled professionally and compliantly.

Getting the right visas and work permits in the Dominican Republic is straightforward when you know the process. If you plan to hire someone for long-term work, they will need a business visa for employment and a residence permit. The visa, called Visa de Negocios con Fines Laborales, is for foreign nationals employed by companies in the Dominican Republic. It is valid for one year and can be renewed. For stays longer than two months, a residence permit is also necessary.

The application process begins after an employment contract is signed. Your employee will need to gather required documents and submit them to the Dominican embassy or consulate in their country of residence. Once the visa is approved, they can travel to the Dominican Republic and start working after submitting their paperwork to the foreign ministry in Santo Domingo.

Employment visas & sponsorship realities

An Employer of Record (EOR) can sponsor foreign employees for work visas in the Dominican Republic. The EOR must be a legally registered entity in the country and will handle the application process for work permits and visas on your behalf. This includes managing all the necessary paperwork, ensuring compliance with local labor laws, and running payroll.

Here are some practical points to consider:

• Sponsorship is necessary. Independent contractors and freelancers cannot apply for the main employment visa.
• Visa quotas may exist. Some countries have limits on the number of foreign workers, which could affect the ability to sponsor a visa.
• Processing times vary. Expect the work permit process to take around two to three months.

An EOR simplifies hiring in the Dominican Republic by managing these key responsibilities:

Business travel compliance

For short-term trips, you need to know the difference between business activities and work. The Dominican Republic has specific rules for business travel.

A business visa allows for activities like attending meetings, conferences, or trade-related events. It does not permit actual employment. These visas can be issued for a single entry and are valid for 60 days. You can also get a multiple-entry business visa valid for one year, which allows for stays of up to two months at a time.

Many visitors, including those from the United States, can enter the Dominican Republic for tourism without a visa for up to 30 days. This is done with a tourist card, the fee for which is often included in your plane ticket. However, engaging in work on a tourist visa can lead to legal issues. If you are traveling for business, it is best to get the proper business visa.