Countries › Dominican Republic › Guide › 15. Exiting › Closing down: ending employment and deregistering at TSS

Closing down: ending employment and deregistering at TSS

Last verified: 2026-10-30 · Status: Stable

A closing employer normally ends contracts by notice and pays cesantía of up to 23 days a year, or pays a day of salary for each day it is late. If a closure comes from lack of resources or unprofitability, the labor authority can approve it, and the employer then owes a lower assistance of 15 days a year. A TSS deregistration is free and takes 30 working days, and it needs proof of final payroll and benefits.

USD figures use the Banco Central de la República Dominicana reference selling rate of RD$60.9007 per US dollar for 29 October 2026, the latest row in its published rate file on the verification date, rounded to the cent.

Key facts

Economic assistance on approved closure	15 days per yearCódigo de Trabajo art. 82 no. 5, as of 2026-10-30 · in force
Cesantía after five years	23 days per yearCódigo de Trabajo art. 80, as of 2026-10-30 · in force
TSS stated time for employer deregistration	30 working daysTSS service sheet, as of 2026-10-30 · in force

The rule

1. Either party can end an indefinite contract by notice without a reason. The employer owes notice of at least 28 days after one year of service, or pay in lieu, and writes to the labor authority within 48 hours.Ley 16-92, Código de Trabajo, art. 75, art. 76, art. 77 and art. 79, 1992-05-29 official text · verified 2026-10-30

2. Cesantía is 6 days of ordinary salary after 3 to 6 months, 13 days after 6 to 12 months, 21 days per year after one to five years, and 23 days per year after five years.Ley 16-92, Código de Trabajo, art. 80, 1992-05-29 official text · verified 2026-10-30

3. Notice pay and cesantía are paid within ten days of termination. Each day of delay costs one more day of salary. They are free of income tax.Ley 16-92, Código de Trabajo, art. 86, 1992-05-29 official text · verified 2026-10-30

4. When a business goes bankrupt and stops entirely, or closes or cuts staff for good because of lack of means to go on, unprofitability or a similar cause, with the approval of the labor department under art. 56, the worker gets economic assistance of 5 days after 3 to 6 months, 10 days after 6 to 12 months, and 15 days per year after one year.Ley 16-92, Código de Trabajo, art. 82 no. 5, 1992-05-29 official text · verified 2026-10-30

5. To use this route the employer files a written request at the labor department, or the local authority, with the reasons, each affected worker's name, ID and address, and supporting documents. The Director General de Trabajo orders an investigation in which the inspector hears workers' representatives and consults the employer on avoiding terminations, and may call both sides to suggest measures.Resolución 32/93 del Secretario de Estado de Trabajo, first, second and third, 1993-11-17 official text · verified 2026-10-30

6. If approved, the employer pays the art. 82 assistance within ten days of receiving the resolution and delivers signed receipts to the labor department in that time. The approval has no legal effect for any worker not paid within that period.Resolución 32/93 del Secretario de Estado de Trabajo, fifth, 1993-11-17 official text · verified 2026-10-30

7. In a definitive staff reduction, as opposed to a full closure, arts. 141 and 142 set the order of who goes.Resolución 32/93 del Secretario de Estado de Trabajo, fourth, 1993-11-17 official text · verified 2026-10-30

8. The labor authority rules on the cause within 15 days.Ley 16-92, Código de Trabajo, art. 56, 1992-05-29 official text · verified 2026-10-30

9. Christmas salary is one twelfth of ordinary salary earned in the calendar year, capped at five minimum salaries, and at termination the employer gives a written statement of the sum due.Ley 16-92, Código de Trabajo, art. 219 and art. 221, 1992-05-29 official text · verified 2026-10-30

10. Profit sharing is 10% of annual net profits, limited to 45 days of ordinary salary for under three years of service and 60 days for three or more, and it has the same privileges as salary.Ley 16-92, Código de Trabajo, art. 223 and art. 224, 1992-05-29 official text · verified 2026-10-30

11. Worker claims for wages have privilege over any other claim, except those of the State, the Distrito Nacional and the municipalities.Ley 16-92, Código de Trabajo, art. 207, 1992-05-29 official text · verified 2026-10-30

12. An employer deregisters at TSS on form DFE-FO-017 with a letter on letterhead, a letter of responsibility, the last payroll paid and proof of payment, the benefits calculation and proof of payment where applicable, and proof of the request to DGII to suspend or deactivate the RNC. It is filed in person, costs nothing, and TSS lists 30 working days.
Cost to do it: Free at TSS.TSS service sheet, Baja de empleador, Requisitos, costo and tiempo de entrega, 2026-10-30 official text · verified 2026-10-30

13. In a judicial liquidation terminations ordered by the court follow the labor code, and worker claims keep their privileges, with payment by court order within ten days of the opening judgment if funds exist.Ley 141-15 de Reestructuración y Liquidación de Empresas y Personas Físicas Comerciantes, art. 166, art. 167 and art. 168, 2015-08-07 official text · verified 2026-10-30

	Notice and cesantía	Approved closure
Who decides	Employer alone	Labor department after investigation
Needs a cause	No	Bankruptcy, lack of means, unprofitability or similar
Payment	Notice plus up to 23 days a year	15 days a year after one year
Deadline	Ten days from termination	Ten days from the resolution
Effect of late payment	One day of salary per day late	Approval has no effect for the unpaid worker

Two ways to end contracts on closure

Worked example

A worker with six years of service and an average salary of RD$60,000 (about US$985.21) a month has a daily salary of RD$2,517.83 (about US$41.34) (divide by 23.83). By notice: 138 days of cesantía is RD$347,460.54 (about US$5,705.36), plus 28 days of notice at RD$70,499.24 (about US$1,157.61) if not worked, a total of RD$417,959.78 (about US$6,862.97). On an approved closure: 90 days of assistance is RD$226,604.70 (about US$3,720.89). Accrued vacation, Christmas salary and any profit sharing are due either way.

Step by step

Choose the route and budget for the higher figure if approval is uncertain.
For an approved closure, file the request with the worker list before announcing dates.
Serve notices and report to the labor authority within 48 hours, or wait for the resolution.
Pay everything within ten days and get signed receipts.
File final payroll, then ask for TSS deregistration with proof of the DGII request.

Common traps

Art. 82 no. 5 speaks of lack of means, unprofitability or a similar cause. A parent's strategic choice to leave a profitable market may not meet it, so plan on notice and cesantía.
A closure approved late or a payment missed by a day removes the protection for that worker.
Notice has no effect during pregnancy and three months after birth or for protected union officials. Take advice on these staff before any date is set.
If the business is sold rather than closed, contracts move to the buyer and no severance arises. See the asset sale page.

Sources

← Dormant companies, temporary closure and suspended RNCsSelling shares or quotas of a Dominican company →

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