CODOPYME says new Labor Code will seriously affect SMEs

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The Dominican Confederation of Micro, Small and Medium Enterprises (CODOPYME), representing 98% of the country's business fabric, expressed its deep concern and categorical rejection of the labor code reform project approved in the first reading by the Senate of the Republic.

According to CODOPYME, far from modernizing the labor legal framework, the legislative proposal represents a direct threat to the sustainability of MSMEs, paving the way for increased informality, excessive judicialization of labor relations, and the possible disappearance of thousands of small businesses throughout the national territory.

Among the most critical points highlighted by the entity are:

* Increased workload without financial backing: Provisions such as those contained in articles 68, 83 and 226 generate payment obligations that many SMEs cannot assume, putting their operational continuity and the employment they generate at risk.

* Disincentive to formality: New requirements such as those in articles 133-Bis, 157 and 162 reduce flexibility in work in sectors with light structures, further distancing small entrepreneurs from formalization.

* Increased judicial workload and weakening of legal security: Changes in judicial procedures (articles 539, 546, 638) and a more severe criminal sanctioning regime (arts. 720-723) would place small employers at a significant legal disadvantage.

Faced with this situation, CODOPYME called for a halt to the current legislative process and the reopening of the tripartite dialogue, guaranteeing the effective participation of the MSME sector. In addition, the organization proposes the incorporation of a special chapter in the Labor Code that contemplates a differentiated regime for micro-enterprises and ventures, as well as the carrying out of economic impact technical studies before approving any definitive provision.

"The Dominican Republic cannot build sustainable economic development without its main productive force. SMEs are not only the present of our economy: they are its future," concluded CODOPYME.

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