Labor Code Reform: Business owners propose installment payments for labor benefits

Santo Domingo. – Discussions about the reform to the Labor Code continue on the table, and in the last meeting with the commission of the Senate of the Republic that studies the piece, the business sector proposed the prorated or installment payment of labor benefits. The president of the commission, Rafael Barón Duluc (Cholitín), said that the “idea is not far-fetched” and that they have not discussed this proposal in depth. “It’s still 10 days, within one of the things they proposed, which we don’t find unreasonable, is that the employer can be given a period of two or three months prorated to pay the benefits,” said the legislator. In that sense, he explained that sometimes a small company does not have the immediate money to pay benefits in a short period and that is why litigation is generated, so if a longer period can be granted it would be good for when compensation is very high. In general terms, Cholitín described the meeting with businessmen and unions as “productive” and considered that public hearings are not necessary on this occasion since important agreements were already reached with the sectors involved last time. Trial period could be extended to 6 months Another aspect being considered is to extend the trial period from 3 to 6 months. Regarding this, Cholitín said that it could be an option for companies that have a very sophisticated technicality and training for which 3 months are not enough. “We discussed that last time and we understand that while it is true that there are many companies that are serious and will not abuse this, there are companies that at 5 and a half months will fire a worker, we are talking about half a year, and there are companies that will be rotating employees so they don’t have to pay. That is an issue we have to discuss with the commission,” said the senator.

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It is recalled that last Tuesday the Senate commission studying the reform to the Labor Code met with worker unions and business groups to hear the pending proposals of the project. One of the key issues of the piece is the severance pay, which the workers insist should not be touched.