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Undoubtedly, payroll is a critical aspect of any organization. The pay cycle is a notable feature that provides a sense of accountability for an employee to be paid consistently for their work.

The frequency cycle in Curacao is monthly or bi-monthly.

13th-month pay is not mandatory in Curacao.

As of January 1, 2023, the minimum hourly wage in Curaçao has increased due to indexing with the consumer price index between August 2022 and August 2023.

For workers aged 21 and older, the new minimum hourly wage is 11.28 guilders. This results in a weekly minimum wage of 451.20 guilders and a monthly minimum wage of 1953.70 guilders for a 40-hour workweek. For longer workweeks of 45 and 48 hours, the wages will be adjusted accordingly.

Young workers aged between 16 and 21 have a youth minimum wage that is reasonably proportional to the adult minimum hourly wage:

According to the labor laws in Curaçao, employees are entitled to overtime pay for any hours worked beyond the standard 40-hour workweek. The overtime rate is typically 1.5 times the regular hourly wage. Employers are required to obtain written consent from employees before assigning overtime work. There are also restrictions on the maximum number of overtime hours that can be worked per week.

Curaçao has established a framework for data protection through the National Ordinance on Data Protection (NODP), which has been in effect since October 1, 2013. This ordinance outlines general principles for processing personal data and the rights of individuals regarding their data.

Key Aspects of Data Retention Laws in Curaçao:

• General Principles: The NODP mandates that personal data may only be processed under specific conditions, such as obtaining consent from the individual or fulfilling a contractual obligation. It emphasizes the importance of protecting personal data and outlines the responsibilities of data controllers and processors.
• Data Protection Authority: The Curaçao Personal Data Protection Board, established in January 2022, oversees compliance with the NODP. Although it is not yet fully operational in terms of supervision, it has the authority to handle complaints regarding non-compliance and can demand information and access to premises.
• Liability and Penalties: The ordinance includes provisions for liability for damages caused by non-compliance, with penalties for violations potentially reaching up to Naf. 10,000 (approximately USD 5,714) for contraventions of its provisions.
• International Implications: The NODP is influenced by international standards, particularly the General Data Protection Regulation (GDPR) from the European Union. Businesses in Curaçao that engage with EU residents may be subject to GDPR regulations, especially concerning the processing of personal data and data breaches.
• Data Retention Schedule: While specific retention periods are not universally defined, organizations are generally expected to retain personal data only as long as necessary for the purposes for which it was collected. This aligns with broader principles of data minimization and accountability under both the NODP and GDPR.

Curaçao has a relatively small labor market, with a population of about 130,000. The economy is diverse, with significant employment in sectors such as tourism, financial services, and public administration. Employers often seek candidates who are multilingual, as the official languages include Dutch, Papiamentu, and English, with many residents fluent in multiple languages.

• Employment Contract: A formal agreement outlining the terms of employment, including job responsibilities, salary, and benefits.
• Identification Documents: Copies of the employee's identification, such as a passport or national ID, are essential for verification and legal compliance.
• Work Permit: If the employee is a foreign national, a valid work permit is required. The employer should assist in obtaining this permit if necessary.
• Tax Documents: Employees must complete tax forms to ensure proper withholding of income tax and social security contributions. This includes registering with the local tax authority.
• Social Security Registration: New employees need to be enrolled in the Social Security system, which provides benefits such as health insurance and pensions.
• Employee Handbook: This document typically includes company policies, procedures, and cultural norms to help the new hire acclimate to the workplace.
• Confidentiality Agreements: Depending on the role, employees may need to sign non-disclosure agreements to protect sensitive company information.
• Health and Safety Documents: Information regarding workplace safety regulations and health policies should be provided to ensure compliance with local laws.

In Curacao, the probation period for employment contracts must be agreed upon in writing and cannot exceed two months. Any stipulation to the contrary renders the entire trial period null and void.

During the probation period, the employment agreement can be terminated at any time without the need for prior approval from the Director of the Ministry of Social Development, Labor, and Welfare.

The National Ordinance Termination Employment Agreements (Landsverordening Beëindiging Arbeidsovereenkomst) generally apply to employment relationships in Curacao, but it does not apply to teaching and lecturing personnel who work at an educational institution.

• 1 January - New Year's Day
• 3 March - Carnival Monday
• 18 April - Good Friday
• 20 April -  Easter Sunday
• 21 April -  Easter Monday
• 27 April - King's Birthday
• 1 May - Labour Day
• 29 May - Ascension Day
• 8 June - Whit Sunday
• 2 July - Flag Day
• 10 October - Curaçao Day
• 25 December - Christmas Day
• 26 December - 2nd Day of Christmas

Every employee is entitled to at least three times their contracted number of working days per week as vacation days per year. This equates to a minimum of 15 days per year for employees who work six days a week.

Employees receive their full salary during their vacation.

Employees unable to work due to illness (not caused intentionally) are entitled to receive 80% of their salary for a limited period. The specific duration may depend on the labor agreement.

Pregnant employees are entitled to maternity leave, which includes 100% salary payment during both pregnancy leave (2-6 weeks before the estimated due date) and maternity leave (8-12 weeks after giving birth).

The total duration of pregnancy and maternity leave combined must be at least 14 weeks.

Male employees are entitled to 5 days of paternity leave.

Curacao recognizes 12 official public holidays. Employees are entitled to their salary during these public holidays.

The required notice period for terminating an employment agreement in Curaçao is based on the employee's length of service:

Employers must also obtain prior approval from the Director of the Ministry of Social Development, Labor, and Welfare before terminating an employment contract unless the termination is by mutual consent or is immediate due to urgent reasons.

Severance pay, known as "cessantia," is applicable when an employee is dismissed without fault on their part. The calculation for severance pay is as follows:

• For the first ten years of service: 1 week's wages for each year of service
• From the 11th to the 20th year: 1.25 weeks' wages for each year of service
• Beyond 20 years: 2 weeks' wages for each year of service

Employees must claim their severance pay within one year after the termination of their employment. If the employer cannot pay due to bankruptcy, the severance pay will be covered by the Social Insurance Bank (SVB) of Curaçao.

Types of Work Permits

• Temporary Work Permit: Valid for a maximum of one year and renewable. This permit is typically issued to foreigners who have secured a job offer from a local employer.
• Permanent Employment Permit: This permit is valid indefinitely and is often granted to foreign nationals who have significantly contributed to the local economy over several years.

• The application for a work permit must be initiated by the employer. 
• Employer Registration: The employer must first register the job vacancy with the Ministry of Social Development, Labor and Welfare (SOAW).
• Application Submission: Once the vacancy is registered, the employer applies for the employment permit at the Vergunningloket (Permit Office). This application can take approximately 3 to 4 months for approval.
• Employee Application: After receiving the employment permit, the employee can then apply for a residence permit. This application process also takes about four months.

Required Documents

• Valid passport
• Completed application form
• Medical certificate
• Police clearance certificate
• Job offer letter from the employer
• Employment contract
• Curriculum Vitae (CV)
• Academic transcripts.

In Curacao, conducting employee background checks involves a structured process governed by legal regulations. Employers are required to obtain consent from candidates before proceeding with any background verification.

• Criminal Background Checks: Employers can verify if a candidate has any criminal convictions. This is essential for roles that require a high level of trust and integrity.
• Employment Verification: This includes confirming previous employment history, which helps ensure that candidates have accurately represented their work experience.
• Education Verification: Employers can check the authenticity of the educational qualifications claimed by the candidate.
• Financial Background Checks: This may involve reviewing a candidate's credit history, particularly for positions that involve financial responsibilities.
• Certificate of Good Conduct (VOG): This document certifies that the individual has no criminal record and is often required for sensitive positions.