Direct Request (CEACR) - adopted 2018, published 108th ILC session (2019)

Dominican Republic

Minimum Wage-Fixing Machinery Convention, 1928 (No. 26) (Ratification: 1956)
Protection of Wages Convention, 1949 (No. 95) (Ratification: 1973)

The Committee notes the observations of the National Confederation of Trade Union Unity (CNUS), the Autonomous Confederation of Workers’ Unions (CASC) and the National Confederation of Dominican Workers (CNTD), received in 2016, on the application of Convention, No. 26 (minimum wage), and Convention No. 95 (protection of wages), and the Government’s response to the observations on Convention No. 26. In order to provide a comprehensive view of the issues relating to the application of the ratified Conventions on wages, the Committee considers it appropriate to examine Convention No. 26 and Convention No. 95 together.

Minimum wages

Article 3(1) and (2)(1) and (2) of Convention No. 26. Operation of the minimum wage-fixing machinery. The Committee notes that: (i) in their observations, the CNUS, the CASC and the CNTD reiterate their previous observations regarding the operation of the National Wages Commission (CNS), the tripartite body mandated to fix minimum wages; and (ii) in its response, the Government indicates that: (a) the CNS operates as a tripartite body with an equivalent number of workers’, employers’ and government representatives; (b) although its decisions are taken by a simple majority, in practice the CNS seeks the approval of the workers’ and employers’ representatives; and (c) the Government is committed to providing a forum for dialogue between the parties. Lastly, the Committee notes the adoption of several resolutions by the CNS in 2017, adjusting the level of the minimum wage applicable to various groups of workers.

Protection of wages

Articles 5, 6 and 7 of Convention No. 95. Payment of wages via bank transfer. The Committee notes that: (i) in their observations, the CNUS, the CASC and the CNTD indicate that, in practice, the vast majority of businesses pay their workers via bank transfer and the employer decides in which bank the wages will be deposited; and (ii) the Government has not provided its comments on this matter. The Committee recalls that the payment of wages by bank transfer with the agreement of the worker concerned does not pose problems with regard to the application of Article 5 (2003 General Survey on protection of wages, paragraph 166). However, the fact that the employer chooses the bank in which the wages are deposited could give rise to issues regarding the application of this Article, as well as Article 6, under which employers shall be prohibited from limiting in any manner the freedom of workers to dispose of their wages, and Article 7, under which, where services are operated in connection with an undertaking, the workers concerned shall be freed from any coercion to make use of such services. In this context, and with a view to giving full effect to the Convention, the Committee requests the Government to take the necessary measures to guarantee that workers may, if they so wish, choose the banking institution in which employers deposit their wages. The Committee requests the Government to provide information in this regard.

Article 8. Deductions from wages. Limits. With respect to its previous comments, the Committee notes that the Labour Code permits deductions on various grounds (section 201), but does not fix a maximum limit in the case of deductions on multiple grounds. While noting the Government’s reference in its report to article 62(9) of the Constitution of the Dominican Republic and Principle XII of the Labour Code, which recognize the right of the worker to fair and adequate wages, the Committee requests the Government to take the necessary measures to establish a maximum limit in the case of deductions on multiple grounds and to provide information in this respect. With regard to deductions related to the repayment of bank loans, the Committee notes that the CNUS, the CASC and the CNTD reiterate their previous observations asserting that banks can deduct certain debts from the wages deposited in the bank without the worker’s authorization and that they also deduct percentages for the transactions effected. The Committee notes in this regard that the Government refers to section 201(4) of the Labour Code, which provides that a worker may be subject to deductions related to loans granted by banks with the recommendation and guarantee of the employer, on the condition that no more than one sixth of the monthly wage earned by the worker is deducted.

Article 12. Payment of wages at regular intervals. Final settlement of all wages due. In its previous comments, the Committee requested the Government to provide its comments on the observations of the CNUS, the CASC and the CNTD regarding several cases of delays in the payment of wages. The Committee notes the Government’s indication that it has taken action, including an awareness-raising campaign on workers’ rights in the sector concerned, and that the payment of the wages of the workers involved was regularized. In their most recent observations, the CNUS, the CASC and the CNTD reiterate that many employers delay the payment of wages and assert that increasing numbers of businesses in export processing zones are ceasing operations without fulfilling their obligation to settle the wages due. Noting that the Government has not sent its comments on this subject, the Committee recalls that, under Article 12, wages shall be paid regularly and, upon the termination of a contract of employment, a final settlement of all wages due shall be effected, within a reasonable period of time. The Committee recalls that the rational underlying Article 12 is to discourage long-wage payment intervals, to minimize the likelihood of indebtedness among workers and to allow them to organize their everyday life with a reasonable degree of certainty and security. Inversely, the delayed payment of wages or the accumulation of wage debts clearly contravene the letter and the spirit of the Convention and render the application of most of its other provisions meaningless (2003 General Survey, Protection of wages, paragraph 355). Moreover, the Committee considers that the application of Article 12 comprises three essential elements: (i) efficient control; (ii) appropriate sanction to prevent and punish infringements; and (iii) the means to redress the injury caused, including not only the full payment of the amounts due, but also fair compensation for the losses incurred by the delayed payment (2003 General Survey, Protection of wages, paragraph 368). The Committee requests the Government to take the necessary measures to guarantee compliance with Article 12 and to provide information on this subject.

Article 14(b). Information to be provided to the worker at the time of each payment of wages. Observing that the Labour Code does not include the obligation to inform workers of the particulars of their wages at the time of each payment of wages, the Committee recalls that, under Article 14(b), where necessary, effective measures shall be taken to ensure that workers are informed, in an appropriate and easily understandable manner at the time of each payment of wages, of the particulars of their wages for the pay period concerned, in so far as such particulars may be subject to change. The Committee requests the Government to indicate the manner in which effect is given to Article 14(b).