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Termination of employment in Aruba

June 16, 2010

The civil code of Aruba regulates the different ways an employment contract can end. These are:

  1. Termination by operation of the law
  2. Termination with mutual consent
  3. Termination by one party
  4. Dissolutionof the contract by a judge

If the employment contract ends by operation of the law, parties generally don’t have to undertake any action to terminate the employment relationship. Examples of a termination of said contract by operation of the law are the death of the employee, a dissolutive condition agreed upon and when the end of the term of an employment for a definite period of time has been reached.

Termination of the employment with mutual consent happens when both the employer and employee agree upon said termination. Parties often do this in a written termination agreement.

Each party can terminate the employment contract at any time without taking into consideration the requirements/prohibitions in our civil code, such as giving the other party the correct notice period. However, there are occasions in which the party that terminates the employment can be held liable. One example hereof is when the correct notice period is not given.

An employer is furthermore required to get permission from the Labor Department to terminate the employment contract unilaterally or submit a petition to the court to dissolve the employment contract. If the employment contract is not terminated in a correct manner the employer can be held liable and sentenced to pay wages from the date of the termination of the employment contract till the date of termination of the employment in accordance with the law. The amount of monies that the employer can be sentenced to pay the employee can even amount to the salary over at least one year if not done correctly.

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From → Labor law

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