Countries › Dominican Republic › Guide › 16. What is normal abroad but not here › Dismissal without cause has a set price

Dismissal without cause has a set price

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

Abroad at will employment means no payment beyond notice; here an employer can end an indefinite contract without giving a reason, but must give notice and pay cesantía of 21 or 23 days of salary a year with no cap on years. Pay is due in ten days, and each day of delay costs one more day of salary. Dismissal for cause must be reported in 48 hours and proved, or the employer pays as if there were no cause, plus up to six months of salary.

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

Dismissal without stating a cause	Allowed on notice with cesantía Ley 16-92 art. 75 and art. 80, as of 2026-10-30 · in force
Minimum notice	7 daysLey 16-92 art. 76, as of 2026-10-30 · in force
Notice after one year	28 daysLey 16-92 art. 76, as of 2026-10-30 · in force
Cesantía, one to five years	21 days per yearLey 16-92 art. 80, as of 2026-10-30 · in force
Cesantía, five years or more	23 days per yearLey 16-92 art. 80, as of 2026-10-30 · in force
Cap on years of cesantía	None in art. 80 Ley 16-92 art. 80, as of 2026-10-30 · in force
Deadline to pay	10 daysLey 16-92 art. 86, as of 2026-10-30 · in force

The rule

1. Desahucio is the act by which a party, with prior notice and without alleging a cause, ends an indefinite contract.Ley 16-92, Código de Trabajo, art. 75, 1992-05-29 official text · verified 2026-10-30

2. Notice is at least 7 days after 3 to 6 months of work, 14 days after 6 months to a year and 28 days after a year.Ley 16-92, Código de Trabajo, art. 76, 1992-05-29 official text · verified 2026-10-30

3. Notice goes to the worker in writing and to the labor authority within 48 hours.Ley 16-92, Código de Trabajo, art. 77, 1992-05-29 official text · verified 2026-10-30

4. Cesantía is 6 days of ordinary salary after 3 to 6 months, 13 days after 6 months to a year, 21 days per year of service after one to five years and 23 days per year after five years. Fractions over three months are paid on the short service scale. No cap on years appears in the article.Ley 16-92, Código de Trabajo, art. 80, 1992-05-29 official text · verified 2026-10-30

5. Notice pay and cesantía are free of income tax and due within ten days of the end of the contract. Otherwise the employer pays one extra day of salary for each day of delay.
Cost to do it: One day of salary for each day of delay.
Example: Salary RD$60,000 a month: RD$2,517.83 a day of delay. / US$41.34 a day of delay.Ley 16-92, Código de Trabajo, art. 86, 1992-05-29 official text · verified 2026-10-30

6. A monthly average salary becomes a daily figure by dividing the total paid in the last year or fraction by the months worked, then by 23.83.Decreto 258-93, Reglamento del Código de Trabajo, as amended by Decreto 565-99, art. 14, 1993-10-01 official text · verified 2026-10-30

7. The employer must tell the worker and the labor authority of a dismissal and its cause within 48 hours, and cannot change or add causes later. A dismissal not reported to the authority in that time is deemed without just cause.Ley 16-92, Código de Trabajo, art. 91, art. 92 and art. 93, 1992-05-29 official text · verified 2026-10-30

8. If the employer does not prove just cause, the court orders notice pay and cesantía plus salaries from the claim date to final judgment, up to six months.
Cost to do it: Up to six months of salary on top of notice and cesantía.
Example: Salary RD$60,000: up to RD$360,000. / Up to US$5,911.26.Ley 16-92, Código de Trabajo, art. 95, 1992-05-29 official text · verified 2026-10-30

Worked example

A worker on RD$60,000 (US$985.21) a month leaves after exactly six years. The daily rate is RD$2,517.83 (US$41.34). Notice pay for 28 days is RD$70,499.37 (US$1,157.61) and cesantía for 138 days is RD$347,461.18 (US$5,705.37), a total of RD$417,960.55 (US$6,862.98). Paying 30 days late adds RD$75,535.04 (US$1,240.30).

Step by step

Check that no protection applies, such as pregnancy, vacation, suspension or union protection.
Give written notice and file it with the labor authority within 48 hours.
Pay notice if it is not worked, plus cesantía, within ten days of the end date.
Pay unused vacation and the proportional Christmas salary.
Keep the receipt and the filed notice.

Common traps

Paying late is the most expensive error, because the daily charge has no cap in art. 86.
A dismissal for cause that fails costs more than a clean notice. Use cause only with proof.
Overtime is left out of the average salary, under art. 85.
Art. 75 says notice has no effect in the protected periods listed there, so the contract stays alive.
Employers in closures or staff reductions have other paths, covered in the labor and exiting sections.

Sources

Código de Trabajo with Decreto 258-93, Ministerio de Trabajo edition

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