Basic guide to notice of termination in the Dominican Republic
In the workplace, the termination of an employment contract can create uncertainty for both the employer and the employee. To ensure that both parties have the necessary time to adapt to this situation, Dominican labor law establishes notice of termination (preaviso) as a fundamental requirement. Regulated by the Labor Code, this measure aims to provide an adequate notification period, facilitating an orderly and structured transition for both parties.
What is notice of termination?
Notice of termination (preaviso) is the advance notification that either party to an employment contract—the employer or the employee—must give to the other when deciding to unilaterally end the employment relationship. Its purpose is to allow the affected party to take the necessary steps to adjust to the new situation. For employees, it provides time to seek new job opportunities; for employers, it facilitates workforce planning, team reorganization, and, if necessary, the search for a suitable replacement.
Similar to severance pay (cesantía), notice of termination applies only to indefinite-term employment contracts and when the termination occurs without just cause.
Regulatory Framework for Notice of Termination in the Dominican Republic
Notice of termination is regulated under Article 76 and subsequent articles of the Dominican Republic’s Labor Code. According to these provisions, the required notice period depends on the employee’s length of service:
- Less than 3 months of service: Notice is not required.
- Between 3 and 6 months of service: 7 days’ notice.
- More than 6 months and up to 1 year of service: 14 days’ notice.
- More than 1 year of service: 28 days’ notice.
When the employer decides to terminate the employment relationship, they must provide written notification. Employees, on the other hand, may provide notice either verbally or in writing. Additionally, in both cases, the termination must be reported to the Department of Labor or the corresponding local authority within 48 hours of notification.
During the notice period, all conditions and rights of the employment contract remain in effect. Additionally, employees are entitled to two half-day paid leave periods per week to search for a new job, without any reduction in salary.
Consequences of failing to provide notice
- Employer’s failure to provide notice
If an employer terminates the contract without granting the required notice, they must compensate the employee through a payment known as substitute indemnity for notice of termination (indemnización sustitutiva del preaviso). This indemnity is calculated based on the salary the employee would have earned during the notice period. If the employer fails to pay this compensation, the employee has the right to file a claim in labor courts, which may result in additional costs for the employer, including interest and legal fees.
- Employee’s failure to provide notice
If an employee fails to provide the required notice before resigning, the employer has the right to deduct the corresponding amount from the final salary. Although it is uncommon for an employer to sue an employee for failing to give notice, the law does allow this action if the salary deduction does not fully cover the unpaid notice period.
Conclusion
Complying with the notice of termination requirement allows both employers and employees to effectively manage the end of the employment relationship. Understanding and respecting this regulation not only helps prevent penalties and legal disputes but also strengthens labor relations and contributes to a more stable and organized work environment.