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Employ Candidates Compliantly in Dominican Republic

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  1. Overview: Dominican Republic
  2. Global PEO and payroll
  3. Global HR Compliance
  4. Work permit for hiring expats via PEO
  5. Expand without a company set up
  6. Contractor vs. employee: which is better?
  7. Global Payroll Calculator
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Global Employer of Record in the Dominican Republic

What Is a Global Employer of Record?

A Global Employer of Record (Global EOR) is a third-party organisation that shoulders the legal and administrative responsibilities of hiring, employing, and managing staff on behalf of a client company. Unlike a standard Employer of Record, a Global EOR can operate across multiple countries, offering a unified solution for managing international employees.

This international talent engagement model is especially advantageous for companies expanding into new markets. Typically, such expansion would require establishing a local legal entity, a time-consuming process laden with bureaucratic hurdles. Global EOR circumvents this necessity. It allows companies to deploy staff in multiple jurisdictions without navigating the complexities of local employment laws, tax structures, and compliance norms. This streamlined approach eliminates the daunting upfront investment and operational costs of establishing a foreign subsidiary or business unit.

The flexibility of a Global EOR model makes it ideal for market testing and agile operations. Companies can quickly enter and exit markets, scaling their workforce up or down based on real-time needs and market conditions. Not only does this minimise risk, but it also preserves the company’s existing tax structure and corporate governance framework. The result is a more efficient, compliant, and strategic approach to international business expansion.

Global Employment Solutions

Compliance and legal guidance at every step of the Global Employment Journey. 24/7 local support.

1. Recruitment

2. Global Mobility

3. Checks

4. Onboarding

5. Payroll Administration

6. Working Time & PTO Processing

7. Benefits Administration

8. Tax Administration & Reporting

Offboarding

Talent skilled in highly-specialized areas Employee Work Visa and Work Permit sponsorship Health checks Employment Agreement drafting In-country registration with statutory bodies Working hours Mandatory Benefits Tax Reporting frequency and requirements; Employment agreement termination:
Executive search Dependent Visa Criminal record checks Compliant worker onboarding on your behalf Day-to-day payroll management Overtime Health insurance Employer taxes & contributions Dismissal – by the employer
Contingency workforce Visa extension Background checks Account setup in the payroll and HR system​ Monthly pay slips or other pay frequency Public holidays Workers’ compensation Employee taxes & contributions Resignation – by the employee
Application for a sponsor license for a foreign national Education checks Employee data entry and records maintenance Accruals Annual leave Unemployment insurance Withholding tax Termination by mutual agreement
Relocation assistance Managing probation periods Allowances Parental leave Voluntary Benefits Local tax payments and reporting to local authorities Notice period handling
13th and 14th salary Sick leave Share plans for executives End of financial year reporting Final settlement & severance payments
Additional leave Bonuses & Equipment provision De-registration with statutory bodies
Expenses reimbursement & business trip processing
Health insurance, dental treatment

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Advantages of Using a Global EOR for Your Global Employment Journey

Navigating the complex landscape of international business poses numerous challenges, from understanding varying employment laws and tax structures to cultural differences and market dynamics. These complexities can often be overwhelming, especially for organisations that need more resources or expertise to manage operations across different jurisdictions. This is where the value of partnering with a Global Employer of Record (EOR) becomes exceptionally clear.

A Global EOR simplifies these complexities and offers strategic advantages to accelerate global expansion plans. By acting as a centralised hub for employment compliance, payroll and tax administration, and local market understanding, a Global EOR enables you to focus on core business functions. At the same time, it handles the nuances of international employment.

Low-Risk, Low-Cost Entry into New Markets

Expanding your business across international borders often comes with significant risks and expenses. A Global EOR mitigates these factors by providing a low-risk, cost-effective solution. You no longer have to invest heavily in establishing a local entity, saving time and money. This reduced financial outlay makes international expansion accessible, even for SMEs and start-ups.

No Need for Local Resources or Entity Establishment

Global expansion typically involves setting up local offices, hiring local staff, and navigating local employment laws—time-consuming and costly tasks. A Global EOR eliminates these burdens by serving as your local entity, managing employment compliance, payroll, and benefits, all while you maintain operational control over your workforce.

Test the Market Before Making a Major Commitment

Market validation is crucial before committing significant resources to an international venture. With a GEOR, you can engage talent and conduct business activities in a new market without making a long-term commitment. This “try before you buy” approach allows you to evaluate the market’s viability and potential return on investment more accurately.

12 Scenarios When You Might Need a Global Employer of Record

Scenario Description
Unhappiness with the Current Provider You have hired an employee but are unhappy with your current service provider and looking for better options.
Contractor Compliance You have decided to hire an independent contractor instead of a full-time employee, and you need help ensuring compliance with local labour, tax, and immigration laws.
Quality Improvement You seek to enhance the quality of employment services while avoiding the risk and hassle of dealing with multiple service providers in different jurisdictions.
Budget Constraints Your company can no longer afford to maintain a fully-fledged legal operation in the target country and needs a more cost-effective solution.
Temporary Projects You have a temporary or short-term project in a foreign country that does not warrant setting up a full legal entity.
Hiring Foreign Workforce You need to hire a foreign workforce for a new international project and ensure legal compliance.
Business Transitions Your company is undergoing a business transition such as mergers, acquisitions, or shutdowns, and you want to ensure smooth and compliant employee transitions.
NGO Staffing You are an NGO that needs to hire professionals in different locations across the globe quickly.
Interim Employment Solution You are in the process of establishing a legal entity in a foreign country but need an interim solution for hiring and payroll.
Scaling up Operations Your company is rapidly growing and needs to hire in countries where you don’t have an established presence yet.
Remote Work Expansion You want to leverage the global talent pool by enabling remote work, but you need help with the employment regulations in each worker’s country.
Reducing Legal Liability Your company wants to reduce potential legal liabilities related to international employment and seeks expert assistance.

Spotlight on the Dominican Republic

  • Location: The Caribbean, bordered by Haiti.
  • Capital: Santo Domingo
  • Population: 11.1 million (2023)
  • Labor force: 7.2 million (2023)
  • Currency: Dominican peso (DOP)

Export: USD 11.4 billion (2022). Export commodities: plastics, cigarettes, ferronickel, jewellery, bananas, electrical equipment, medical equipment, beverages, clothing, scrap metals. Main export partners: United States, Spain, United Kingdom, Haiti, China, Netherlands, Belgium, Cuba, and Jamaica.

Import: USD 21.7 billion (2022). Import products: fuel, cotton, electrical equipment, oil, natural gas, corn, jewellery, electronic appliances, iron and steel. Main import partners: United States, Netherlands Antilles, Brazil, Venezuela, China, Japan, Mexico, Colombia, and Trinidad & Tobago.

Holidays: New Year’s Day; Day of the Kings; Dia de Nuestra Senora de La Altagracia; Birthdate of Juan Pablo Duarte Diez; Independence Day; Good Friday; Labor Day; Habeas Christi; Day of Restoration; Dia de Las Mercedes; Constitution Day; Christmas Day.

Economic Outlook

According to the World Bank, the Dominican Republic economy is expected to grow by 3% in 2023. This is a slowdown from the 4.9% growth rate recorded in 2022, but it is still higher than the average growth rate for Latin America and the Caribbean.

The slowdown in growth is due to a number of factors, including the global economic slowdown, the war in Ukraine, and rising inflation. However, the Dominican Republic’s economy is supported by a number of factors, such as a young and growing population, a strategic location, and a number of ongoing economic reforms.

Investment Opportunities

The Dominican Republic is a country with a number of investment opportunities, including:

  • Tourism: The Dominican Republic is a popular tourist destination, and there are opportunities for investment in hotels, resorts, and other tourism infrastructure.
  • Manufacturing: The Dominican Republic has a growing manufacturing sector, and there are opportunities for investment in textiles, chemicals, and other industries.
  • Renewable energy: The Dominican Republic has much potential for renewable energy development, such as solar and wind power. There are opportunities for investment in renewable energy projects.
  • Agriculture: The Dominican Republic has much agricultural potential but is underdeveloped. There are opportunities for investment in irrigation systems, agricultural machinery, and food processing plants.

Unlock Global Talent in the Dominican Republic with Express Global Employment’s EOR Solution

Navigating the complexities of local legislation and employment practices can be a roadblock for global companies aiming to expand in the Dominican Republic. Express Global Employment simplifies this with its seamless Employer of Record (EOR) services. We manage everything from employee onboarding and payroll in local currency to securing work permits and visas for expatriate staff. Our integrated solution ensures 100% compliance, allowing you to focus solely on your business goals. Trust us to be your reliable partner in employing and managing a fully compliant workforce in the Dominican Republic.

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