13 Aug Legal Status of Sellers in the Dominican Republic: Employer Responsibilities

Understanding the Legal Status of Sellers in the Dominican Republic

In the Dominican Republic, the role of sellers is often overlooked by employers who may not consider these individuals as employees, even when they provide services exclusively under strict subordination. However, under Dominican law, sellers who work in a permanent and subordinate relationship with an employer are recognized as workers with specific rights.

The Labor Code of the Dominican Republic has established a special regime for sellers. According to Title VIII of the Fourth Book of the Labor Code, sales promoters and those performing similar activities are considered workers as long as they permanently provide their services under the employer’s subordination. This means that the existence of a continuous and subordinate relationship between an employer and a seller is enough to classify the seller as a worker.

Renowned legal expert Professor Lupo Hernández Rueda emphasizes that the specific title or payment method (whether by trip, commission, fixed salary, or a combination) does not alter the recognition of the seller as a worker. The critical factor is subordination, defined as the employer’s authority to issue orders and instructions regarding the service provided and the ongoing nature of the relationship.

As recognized workers, sellers are entitled to a salary that cannot be less than the minimum wage established by regulations, regardless of how it is calculated. This salary includes both the fixed salary and regularly received commissions.

Employers must carefully evaluate their relationships with sellers to ensure compliance with labor laws. Failure to acknowledge the seller’s rights under the Labor Code can result in legal liabilities. Article 313 of the Labor Code clearly states that all labor provisions apply to sellers in their capacity as workers.

Employers should be mindful of the legal implications of their relationships with sellers. If you’re uncertain about your obligations or need guidance on ensuring compliance, contact Segura Abogados today. Our team of experienced legal professionals is here to help you navigate the complexities of labor laws and protect your business interests.