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Dominican Republic

Dominican Republic: Being a Partner does not Prevent the Existence of an Employment Contract

Author: Amado Sánchez de Camps

The Supreme Court of Justice, by Sentence of 31 May 2022, has upheld the constant criterion that a shareholder can be considered an employee if he provides his services in a subordinate and paid manner to the company he is a part of. In this case, it is understood that the criterion applies to the employee who is also a member of a cooperative.

Key Action Points for Human Resources and In-house Counsel

The company must always verify the nature of its collaborators’ services. Their status as a partner or shareholder does not prevent an employment contract. Therefore, the entity must comply with the labour laws’ obligations. It is recommended to consult the company’s legal representatives if you have any doubts about whether a person is an employee.