EMPLOYEE BENEFITS Employee benefits contemplated by law are Christmas salary, profit sharing of the company’s benefits (if any), and payment of annual vacations.
TERMINATION OF LABOR CONTRACTS A labor contract may be terminated, among other reasons, by layoff or termination may be sought by any of the parties, in which case it is not necessary to indicate any cause; with cause when one of the parties has committed a major fault; or by mutual consent. During the first three months of work, employees may be ter- minated without the need to pay any sort of compensation. After this period they shall have indemnification rights in accordance to their time as employees. In the case of a dismissal with cause in accordance with the causes and procedures the Labor Code establish- es an employer will not have to pay any indemnification to the employee. If, however, a dismissal is declared by an appointed labor court as unfair, the employee is entitled to receive full indemnification; otherwise, only certain acquired rights apply. The employer must give advance notice when laying off an employee. If advance notice is not given, the em- ployer must pay the laid-off employee compensation for lack of notice. Payments made to employees who are terminated are not subject to the payment of income tax. Reduced termination benefits are paid in the event of termination of employment for special causes, such as an employer’s death or disability, illness, lack of raw materials, or company bankruptcy , among others.
SOCIAL SECURITY OBLIGATIONS The Dominican Social Security System (SDSS) is comprised of a complex web of State, mixed, and private agencies, such as the National Social Security Council (an organization that establishes policies regarding this matter), Social Security Treasury (to charge contributions, distribute, and pay financial resources), Pensions Superintendance, Health and Labor Risk Superintendance, National Health Insurance, Pension Fund Adminis- trators, Health Risks Administrators, Providers of Health Services, among others. The law regulates the functioning of all these entities, establishing the rights and obligations of all partici- pants, including the State, employers, employees, and beneficiaries.