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Sint Maarten (Dutch Part)

Termination and Severance Policies

Learn about the legal processes for employee termination and severance in Sint Maarten (Dutch Part)

Notice period

In Sint Maarten (Dutch Part), the minimum statutory notice period for terminating employment contracts is outlined in Article 7:668a of the Civil Code. The required notice period is dependent on the employee's length of service.

Minimum Notice Periods for Employers

For employees with less than 5 years of service, a one-month notice is required. If the employee has served between 5 years to less than 10 years, a two-month notice is necessary. For those who have served between 10 years to less than 15 years, a three-month notice is required. Finally, for employees with more than 15 years of service, a four-month notice is required.

Important Points to Note

These are minimum requirements. The employment contract can stipulate a longer notice period, but the employer's notice period must be at least double the employee's notice period. The notice period applies in both directions. Employees are generally required to work during their notice period unless the employer relieves them of their duties.

Exceptions to Notice Periods

There are limited exceptions where notice periods may not apply, such as termination due to gross misconduct by the employee. However, employers should consult with legal counsel before terminating employment without notice.

Severance pay

In Sint Maarten (Dutch Part), the Civil Code of Sint Maarten (Burgerlijk Wetboek van Sint Maarten) governs severance pay. Employers are legally required to provide severance pay in certain situations when an employment contract is terminated.

Eligibility and Calculation

To be eligible for severance pay, an employee must have worked with the employer for a minimum of two years. The calculation of severance pay is based on the employee's length of service and their most recent weekly wage. The formula for calculating severance pay in Sint Maarten is as follows:

  • For 1-10 years of service: One week's wage per year of service.
  • For 11-20 years of service: One and a quarter week's wage per year of service.
  • For 21+ years of service: Two weeks' wage per year of service.

Circumstances for Severance Pay

Severance pay is generally due to the employee if the termination meets one of these conditions:

  • Employer-Initiated Termination (with cause): If the employer terminates the employment contract for a valid reason (such as serious misconduct), the employee may still be entitled to severance pay.
  • Employer-Initiated Termination (without cause): If the employer terminates the employment contract without a valid reason, the employee is entitled to severance pay.
  • Mutual Agreement: Severance pay provisions may be negotiated as part of a mutual termination agreement.

Exceptions

There are certain situations where an employee is not entitled to severance pay. These include:

  • Fixed-term contract: If the employment contract is for a fixed term and ends naturally at the end of the term.
  • Employee Resignation: If the employee resigns from their position voluntarily.
  • Serious Misconduct: Severance may not be required if the employee is dismissed for serious misconduct.

Termination process

In Sint Maarten (Dutch Part), the termination of an employment contract must comply with the regulations outlined in the Civil Code of Sint Maarten (Burgerlijk Wetboek van Sint Maarten), specifically Book 7, Title 10. There are several methods by which employment can be terminated under Sint Maarten law:

Termination by Notice

Employer-Initiated Termination requires the employer to provide written notice to the employee. The required notice period varies based on the length of the employee's service. Employee-Initiated Termination allows an employee to initiate termination by providing written notice to the employer. The required notice period for employees is typically one month.

Termination with Approval from the Department of Labor Affairs

Urgent Reasons for Termination allow an employer to apply to the Department of Labor Affairs to terminate a contract without notice if they substantiate an urgent reason for doing so. Similarly, an employee can petition the Department of Labor Affairs for termination without notice in the case of an urgent reason attributable to the employer.

For Other Termination Reasons, if an employer wishes to terminate an employment contract for reasons other than an urgent cause, they must submit a request for permission to the Department of Labor Affairs. The Department will then consider the circumstances and may grant permission.

Termination by Mutual Agreement

The employer and employee may mutually agree, in writing, to terminate the employment contract.

Dissolution by Court Order

Either the employer or employee may petition the Court of First Instance of Sint Maarten to dissolve the employment agreement if sufficient grounds for dissolution exist.

The Civil Code of Sint Maarten (Burgerlijk Wetboek van Sint Maarten) provides the legal framework for these processes in Book 7, Title 10, Sections 7A:1615a to 7A:1615r.

Important Considerations

Specific regulations and requirements may apply for fixed-term contracts or collective dismissals.

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