Dominican Republic pushes labor reforms to boost hiring of workers over 40

The Dominican Labour Ministry announced new measures to encourage the hiring of workers older than 45, prioritising them in the RD‑Trabaja employment programmes. The move follows a study by the Grupo Alianza por la Paz showing that the share of unemployed people aged 40‑50 rose from 16.4 % in 2018 to 20 % in 2024, despite their experience and productivity. Minister Eddy Olivares stressed that age discrimination contradicts the Constitution and ILO Convention 111, and called on employers to value senior workers.

At the same time, the government’s pending labour reform has sparked debate over the role of severance pay (cesantía). Pension Superintendant Francisco Torres told a conference that the reform will not alter the existing severance rules, countering union criticism that the issue is a barrier to approval. He also outlined broader pension‑system changes aimed at improving benefits and sustainability.

Regional reforms in Chile and Argentina are being cited as examples of how to balance worker protection with employment flexibility. Analysts warn that ignoring the employment needs of workers over 40 could jeopardise pension contributions and overall economic competitiveness.