Countries › Dominican Republic › Guide › 7. Labor and employment › Contract suspension and workforce reductions in the Dominican Republic: the tools short of severance
Contract suspension and workforce reductions in the Dominican Republic: the tools short of severance
Last verified: 2026-10-30 · Status: Stable
An employer facing a shock can suspend contracts for up to 90 days in 12 months on listed economic grounds, with no pay during the suspension, once the labor authority confirms the cause. Staff cuts must follow an order set by nationality and family status, and they must be reported first. The code has no separate collective dismissal procedure.
USD figures use the Banco Central de la República Dominicana reference selling rate of RD$60.9007 per US dollar for 29 October 2026, as shown on its home page on the verification date, rounded to the cent.
Key facts
| Maximum economic suspension in 12 months | 90 daysLey 16-92 art. 55, as of 2026-10-30 · in force |
|---|---|
| Deadline to report a suspension | 3 daysLey 16-92 art. 55, as of 2026-10-30 · in force |
| Deadline for the labor authority to rule | 15 daysLey 16-92 art. 56, as of 2026-10-30 · in force |
| Exchange rate used for USD conversions | 60.9007 DOP per USDBanco Central reference selling rate, as of 2026-10-29 · in force |
The rule
1. Suspension does not end the contract or create liability. The worker stops working and the employer stops paying, unless the law, a collective agreement or the contract says otherwise.Ley 16-92, Código de Trabajo, art. 49 and art. 50, 1992-05-29 official text · verified 2026-10-30
2. Causes include mutual consent, maternity, legal duties, fortuitous events, detention, illness, work accidents, lack of raw material, lack of funds if the employer fully justifies it, overproduction, unprofitability, and legal strikes or lockouts.Ley 16-92, Código de Trabajo, art. 51, 1992-05-29 official text · verified 2026-10-30
3. For fortuitous events, raw material shortage, lack of funds, overproduction and unprofitability, suspension lasts at most 90 days in 12 months. The labor authority can extend it if causes persist.Ley 16-92, Código de Trabajo, art. 55, 1992-05-29 official text · verified 2026-10-30
4. The employer tells the worker and the labor authority in writing within three days, with cause, length and supporting documents.
Cost to do it: Form DGT-9 costs RD$300 and form DGT-12 on ending the suspension costs RD$300 (about US$4.93 each).Ley 16-92, Código de Trabajo, art. 55, 1992-05-29 official text · verified 2026-10-30
Cost to do it: Form DGT-9 costs RD$300 and form DGT-12 on ending the suspension costs RD$300 (about US$4.93 each).Ley 16-92, Código de Trabajo, art. 55, 1992-05-29 official text · verified 2026-10-30
5. The labor authority checks the cause and rules within 15 days. Inspectors verify within three days of notice.Ley 16-92, Código de Trabajo, art. 56 and art. 435, 1992-05-29 official text · verified 2026-10-30
6. A worker gives notice of the reason for absence within 24 hours.Ley 16-92, Código de Trabajo, art. 58, 1992-05-29 official text · verified 2026-10-30
7. Suspension ends with its cause. The employer restarts work by notice to the labor authority, and a worker who then does not return within six days is deemed at fault.Ley 16-92, Código de Trabajo, art. 59, art. 60 and art. 61, 1992-05-29 official text · verified 2026-10-30
8. Temporary replacements are allowed in most personal suspensions.Ley 16-92, Código de Trabajo, art. 57, 1992-05-29 official text · verified 2026-10-30
9. A contract also ends without liability on a fortuitous event or force majeure. An insured employer must rebuild in proportion to the payout or compensate workers equitably, up to cesantía.Ley 16-92, Código de Trabajo, art. 74, 1992-05-29 official text · verified 2026-10-30
10. When staff must be cut for legal causes the order is: single foreigners, married foreigners, foreigners married to Dominicans, foreigners with Dominican children, single Dominicans, married Dominicans. Within each group those with least service go first.Ley 16-92, Código de Trabajo, art. 141 and art. 142, 1992-05-29 official text · verified 2026-10-30
11. The Ministro de Trabajo can exceptionally lift the seniority rule in art. 142 if it would seriously harm the company.Ley 16-92, Código de Trabajo, art. 143, 1992-05-29 official text · verified 2026-10-30
12. Before any reduction the employer tells the labor authority so it can check compliance with arts. 141 and 142.Decreto 258-93, Reglamento del Código de Trabajo, art. 24, 1993-10-01 official text · verified 2026-10-30
13. The Ministry supplies the closure or staff reduction form DGT-1 free of charge.
Cost to do it: Free.Resolución 01-2022, Third, 2022-02-22 official text · verified 2026-10-30
Cost to do it: Free.Resolución 01-2022, Third, 2022-02-22 official text · verified 2026-10-30
| Tool | Pay during | Authority role | Cost beyond forms |
|---|---|---|---|
| Economic suspension | None unless agreed | Checks cause in 15 days | None |
| Notice and cesantía | Notice pay | Reporting in 48 hours | Severance scale |
| Mutual termination | As agreed | Before authority or notary | As agreed |
Options in a downturn
Worked example
- A hotel loses its season after a storm and suspends 100 workers on RD$30,000 a month for 60 days. Monthly payroll of RD$3,000,000 (about US$49,260.52) falls away during that time, while the file proves the cause. A notice dismissal of the same people would cost severance on the arts. 76 and 80 scales.
Step by step
- Document the cause with financial and operational evidence.
- File within three days with supporting papers.
- Tell workers in writing.
- Apply for an extension if 90 days will not be enough.
- Give notice of restart to the labor authority.
- For staff cuts, report first and rank by arts. 141 and 142.
Common traps
- A suspension that the labor authority rejects leaves wages due, and refusal to pay or resume work is a ground for resignation under art. 97.
- The nationality order in art. 141 surprises foreign investors, and it applies before business criteria.
- Employer notice given during a suspension for a personal reason of the worker has no effect.
- A 2026 bill proposed to add emergency measures as a suspension cause, but it did not pass.
Sources
- Código de Trabajo and complementary norms, Ministerio de Trabajo
- Resolución 01-2022, Ministerio de Trabajo form fees
- Banco Central de la República Dominicana home page
Related pages
- labor/termination-and-severance
- labor/foreign-workers-and-quotas
- labor/labor-reform-tracker
- /country/dominican-republic/
- /calendar/
- Live dashboard
Related: Dominican Republic country profile · live dashboard · central bank and release calendar · our posts on X
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