Netherlands Antilles failed to pass labor contract ordinance

POSTED: 06/13/11 12:55 PM

Short term labor contract ordinance does not cover manpower agencies

St. Maarten – The draft National Ordinance Short Term Labor Contracts as proposed by the National Alliance faction seems to be a dressed down version of an elaborate piece of legislation the Parliament of the Netherlands Antilles failed to deal with before the transition to country status on October 10 of last year.

The National Ordinance Labor Contract (title 10 of Book 7 of the Civil Code) never made it to the floor of the Antillean Parliament, nor was it ever brought to the attention of members of the Tripartite Committee in St. Maarten.

The ordinance does not contain the National Alliance proposal to make labor contracts permanent when they have been renewed more than three times with intervals of more than three months. Instead, the ordinance makes labor contract permanent when 6-month or 1-year contracts have been extended more than three times with intervals of less than three months, or when the temp contracts including the intervals span a period longer than 36 months

In this sense, the NA-proposal seems stricter. However, the draft ordinance says nothing about employees who work via man power organizations. This construction is in particular in use by hotels, casinos and timeshare operations.

The draft National Ordinance Labor Contract declares article 668a applicable to manpower contracts, once the employee has been working for it for at least 26 weeks. So in that case, the manpower employee will get the same perspective on a permanent contract as an employee who is hired by a company directly of a 6-month or a 1-year contract. As soon as the manpower employee has worked on and off for a period longer than 36 months for the same employer via the manpower organization he would qualify for a permanent contract. To calculate the 26-week period, intervals of less than one year are taken into account.

In the explanatory notes the authors state that “intervals of less than one year in the periods wherein an employee performs work do not stand in the way of continued counting for the 26-week period. This rule also applies when the employee works for different employers while these employers can be considered each other’s legal successors. This is designed to avoid the revolving door construction.”


1c� ie�؟� normal’>The first initiative government undertook is to get USONA to fund a project titled Integrated Coupling System, which will link files across the different government departments with unique identifiers. The second initiative will be the installation of a tax compliance team, which will do field investigations to known tax payers and perform spot checks at businesses that may be operating without paying tax. In the latter instance checks will be made at construction sites, hotels, casinos, bars and restaurants.

“Investment in the knowledge of the tax and audit staff takes a reasonable time effort and also the recruitment of specialized staff as tax inspectors and tax auditors, being both kinds of professionals, considered very scarce on the labor market,” Shigemot said.


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