in the Dominican Republic
contract may be modified as a consequence
of the provisions in the Labor Code
and subsequent labor laws, collective
bargaining agreements or mutual consent.
Also, the employer is allowed
to enforce necessary changes to the
employment agreement, as long as they
do not imply an unreasonable exercise of
this power, alter the essential conditions
of the contract, or cause material or moral
damage to the employee. That means that
the change cannot negatively affect the
employee by decreasing or eliminating
any rights or benefits.
abusive exercise of the management power
(in our country, we use the Latin phrase
"ius variandi"), which is the employer's
right to change the working conditions
unilaterally, even against the will of the
employee, by a justified need. The abusive
modification of the employment contract
could lead to a breach thereof, with full
employer liability. The abusive use of the
management power can be just cause for
the resignation of the employee.
In the Dominican Republic, this
is one of the most significant labor-
related topics: the management power of
employers and the limits established for
such power by our legislation. In general
terms, this power may be defined as the
possibility for employers to regulate on a
discretionary basis the manner in which
employment relationships should develop.
This aspect is regulated under articles
40 and 41 of the Dominican Labor Code.
Article 40 of the Labor Code states that
employers' management powers should be
exercised on a functional basis. Moreover,
it establishes that the management power
should serve the company's interests and
the production needs, to the extent that
the conservation and improvement of
employees personal and economic rights
are not negatively affected by this power.
Article 41 of the Labor Code declares
that employers are entitled to put in place
any necessary changes for the purposes of
adequate provision of services. But such
changes should not entail an unreasonable
exercise of such management powers,
nor imply a disruption to the essential
conditions of the employment contract
or cause material or moral damages to
employees.
Dominican law provides for the existence
of management powers in favor of
employers. Such powers materialize in
the employers' right to determine the
manner in which their companies should
be organized, as well as in the operational,
technical and disciplinary guidelines on
which companies' operations should rely.
Thus, any changes to the conditions of
the labor agreement issued by employers
with basis on their management powers
must ensure the moral, physical and
economic integrity of employees. This
means that such changes should not be
issued in violation of any employee rights
established under labor laws, let alone
impair employees' dignity and privacy.
So, any changes to employment
contracts to be conducted by employers
in the execution of their management
power should not result from arbitrary or
retaliatory decisions. But, they should
derive from actual and functional interests
of the company. They should be based
on objectively valid reasons. Also, these
changes should not affect the essential
conditions of the employment contract
(time, place and specific way services
should be provided) as initially agreed
upon by the parties. Finally, management
powers should not affect moral, material
or economic interests of employees.
The Supreme Court of Justice of the
Dominican Republic has provided several
examples in connection with situations that
have infringed on the ius variandi principle.
Such infringement may occur when:
to change the conditions of the
employment contract, thereby causing
economic, material or moral damages;
y Salegna, where she specializes in labor and
employment law. She is a frequent speaker at
seminars and conferences, where her topics
include helping employers find solutions for
common labor problems, training management
in handling a variety of workplace situations, and
union issues.
Lope de Vega No.29, Novocentro Tower, Suite 605
Ensanche Naco
Santo Domingo, Dominican Republic 10119
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