Copardom backs tripartite dialogue to advance labor code reform

Santo Domingo. – The president of the Employers' Confederation of the Dominican Republic (Copardom), Laura Peña Izquierdo, expressed the business sector's support for the proposal to open a tripartite dialogue to address the pending points of the reform to the Labor Code, including the issue of severance pay.

Peña Izquierdo valued the initiative of the President of the Chamber of Deputies to convene this space for concertation, considering that dialogue between employers, workers, and the Government is the basis for reaching balanced and sustainable agreements. He indicated that much of the reform to the Labor Code already has consensus, such as aspects related to the working day and procedures, with issues linked to labor costs pending, including severance pay.

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The president of Copardom clarified that the business sector is not proposing the elimination of severance pay, but rather its modification, without affecting the acquired rights of workers, with the aim of improving the country's competitiveness, productivity, and investment climate. Among the proposals presented by Copardom are the establishment of a cap on severance, the recognition of labor liabilities as tax deductible, the calculation of severance based on the average of earned salaries, the implementation of unemployment insurance provided for in Law 87-01, as well as the extension of the trial period from three to six months to encourage youth employment. Peña Izquierdo pointed out that, although the issue was discussed in the Labor Advisory Council, no agreement was reached, so he reiterated the importance of resuming dialogue to agree on the points that are still pending.