Labor & Employment Practices

Land refers to the “natural resources used to produce things”. (Sternquist, 2007). Some of the Dominican Republic’s most important natural resources include arable land, minerals, fish, and beautiful scenery among others. In 2015, forests covered roughly 41% of the Dominican Republic’s territory which was a significant increase from the size of land covered in 2004. The increase in forest cover within the Dominican Republic is primarily because the government and environmentalists encouraged the Dominican people to plant more trees and conserve the existing forests (Benjamin Sawe, 2019). Labor refers to “unskilled and semi-skilled workers”, rather than the skilled labor force ( Sternquist, 2007). Countries can attract some retailers such as large department stores by offering low-cost labor ( Sternquist, 2007). The Dominican Republic has long been viewed primarily as an exporter of sugar, coffee, and tobacco, but in recent years the service sector has overtaken agriculture as the economy’s largest employer, due to growth in telecommunications, tourism, and free trade zones. Labor force by occupation Agriculture 14.4%, Industry 20.8%, and Services 64.7% ( CIA The World Factbook,2022). Capital refers to “ money, machinery, and infrastructure”( Sternquist, 2007). The Dominican Republic has experienced a remarkable period of economic growth throughout the past 25 years; it expanded by an average of 5.3% from 2000-2019 and this was mainly driven by capital accumulation and total factor productivity growth (De La Paz, 2022). “As the pandemic recedes, investment in human capital will be vital to the DR’s continued growth and development” (De La Paz, 2022). Entrepreneurship refers to “ creative management and ideas; or how people show problems and look for opportunities”(Sternquist, 2007). A study showed that more than 80% of the adult population in the Dominican Republic believes that they have the skills and intentions to start a business, and only 38% of these said they were afraid of failure ( Dominican Today, 2022).

In the Dominican Republic, there are certain requirements that have to be met in order for foreign employees to work. It is the law that a company’s workforce must consist of at least 80% of Dominicans, this is what allows foreigners to find employment due to the high demand for them (Sánchez & Salegna, 2021, p.6). It is also vital that all employers have legal documentation to verify their identity because if not, the employers who hired them will be penalized; the requirements to request a temporary residence permit solely for employment are as follows: undergo a medical examination authorized by the General Directorate of Migration, have two copies of the passport photo, and two copies of Residence or Work Visa granted by the Ministry of Foreign Affairs through the Dominican Consulate in the country of origin (Sanchez & Salegna 2021, p.6). The minimum working conditions in the Dominican Republic are straightforward and aren’t too complicated for those who can’t really understand. All employees are entitled to a minimum wage that is regularly adjusted; the amount may vary based on the sector and size of the company, and it is mainly managed by the National Salary Committee (Tossi, 2021). Employees have the right to compulsory health insurance and health insurance which is funded by both the employers and employees through mandatory social security contributions. All salaries must be paid by cash, check, or direct deposit to the employee’s bank account and their regular work period cannot exceed eight hours per day and 44 hours per week (Tossi, 2021). The employer is also supposed to provide their employees with compulsory paid vacations and a Christmas salary every December, which consists of one-twelfth of the original salary earned by the employee throughout the calendar year (Diaz & Median, 2022). Due to COVID-19, there are protocols that have to be followed now in workplaces in order to maintain a safe and healthy environment for all workers. These protocols include conducting daily health checks, frequent cleaning & disinfecting, social distancing, encouraging employees to wear face masks, and improving the building’s ventilation system, and having a specific procedure to follow in case of any COVID-19 cases (Tossi, 2021).

Figure 8

Written by: Zahira Santana and Carlton Georges