A cap is not something that the DR would do exclusively, but this is being done in the region due to the issue of labor costs.
After several years of having started the discussion to modify the Labor Codethere is already a large percentage of agreed upon issues, however the unemployment situation still has no solution in sight.
According to the president of the Employers’ Confederation of the Dominican Republic (Copardom), Laura Peña Izquierdowork continues on the reform of the law, so most of the issues have already been agreed upon.
However, regarding severance pay, he stressed that the issue is still under discussion and reiterated that employers do not intend to eliminate this acquired right.
He reiterated that they are not advocating the elimination of severance pay, but rather a modification of it, where a cap is imposed on the payment that a worker would receive once he or she no longer works for the company.
He said that putting a cap on unemployment is not something that the Dominican Republic would do exclusively, but that this is being done in the region due to the high labor costs that employers have.
