Discover everything you need to know about Aruba
Here ares some key facts regarding hiring in Aruba
Aruba, a small island in the Southern Caribbean Sea, is part of the Lesser Antilles and lies about 18 miles north of Venezuela. It has a flat landscape with its highest point at Mount Jamanota (620 feet) and features a mix of calm, sandy beaches on the southwest and rugged terrain on the northeast. The island enjoys a dry, sunny climate with an average temperature of 82°F and is outside the hurricane belt.
Originally inhabited by the Caiquetio people of the Arawak tribe, Aruba was claimed by Spain in 1499 and later became a Dutch territory in 1636, a status interrupted only briefly by British rule during the Napoleonic Wars. The economy historically depended on gold mining, aloe vera cultivation, and later oil refining, which began in 1933. In 1986, Aruba gained autonomous status within the Kingdom of the Netherlands, and today, its economy is primarily driven by tourism.
Aruba operates as a parliamentary democracy within the Dutch constitutional monarchy. It has a diverse population of about 112,000, speaking Dutch, Papiamento, English, and Spanish. The economy is supported by tourism, and although the oil sector is closed, it played a significant role historically. Aruba enjoys a high standard of living with a well-developed infrastructure and social welfare system. The workforce is aging, presenting challenges in knowledge transfer and engagement of younger workers.
The workforce is well-educated, with many possessing secondary education or higher. Key skills include hospitality management, customer service, and language proficiency for the tourism sector, and financial and IT skills for the finance and business sectors.
Tourism dominates, employing many in services related to hospitality. Other significant sectors include public services, finance, business, and healthcare, the latter growing due to an aging population. The work culture emphasizes a relaxed pace and family importance.
Arubans prefer direct communication, often softened by a friendly demeanor, and value personal connections in business. Workplaces maintain hierarchical structures, with respect for authority and professional titles important.
While the oil refining sector is dormant, there are potential plans for its future. The financial services sector benefits from a stable political climate and attractive tax incentives. Aruba is also positioning itself as a logistics hub and is investing in sustainable development and technology to diversify its economy.
Understand what the employment costs are that you have to consider when hiring Aruba
Rivermate is a global Employer of Record company that helps you hire employees in Aruba without the need to set up a legal entity. We act as the Employer of Record for your employees in Aruba, taking care of all the legal and compliance aspects of employment, so you can focus on growing your business.
When you hire employees in Aruba through Rivermate, we become the legal employer of your staff. This means that we take on all the responsibilities of an employer, while you retain the day-to-day management of your employees.
You as the company maintain the direct relationship with the employee, you allocate them the work and manage their performance.
Rivermate takes care of the local payrolling of the employee, the contracts, HR, benefits, and compliance.
As an Employer of Record in Aruba, Rivermate is responsible for:
As the company that hires the employee through the Employer of Record, you are responsible for:
In Aruba, employers are responsible for contributing to several social premiums based on their employees' gross salaries. These include:
Additionally, employers must withhold income tax from employees' salaries and manage regular payroll tax filings. Aruba employs a progressive income tax system, with potential deductions and allowances for items like mortgage interest and work-related expenses.
For self-employed individuals, they are responsible for their own tax and social premium calculations and payments. Aruba also imposes a 6% turnover tax on most services, with specific exemptions and compliance requirements. Businesses in Free Zones benefit from reduced corporate income tax rates and other tax incentives, while investment allowances and fiscal facilities are available to encourage business investments and development in various sectors.
Aruba's labor laws ensure employees receive paid vacation leave, with the minimum entitlement set at three times the number of contracted working days per week. For a standard 5-day workweek, this results in 15 working days of annual leave, and for a 6-day workweek, 18 days. Employees must use their vacation days within the year to avoid forfeiture, although they can carry over a minimum of 5 days. Vacation leaves can be combined up to a maximum of 6 times the weekly workdays, with the employer required to grant the leave within 3 months of the request.
Aruba also observes several national and religious holidays, including New Year's Day, Betico Croes Day, Carnival Monday, National Anthem and Flag Day, Good Friday, Easter Monday, King's Day, Labor Day, Ascension Day, Christmas Day, and Boxing Day.
Other types of leave include sick leave, where employees receive 80% of their daily wage from the fourth day of illness, and maternity leave, offering 12 weeks at full pay. Paternity leave is typically granted based on company policy. Bereavement and study leave are not legally required but may be offered by employers or through collective agreements. Always check employment contracts or collective agreements for specific terms.
Aruba's labor laws ensure a comprehensive set of mandatory benefits for employees, aimed at providing security and well-being. These include:
Social Security Contributions include:
Employers also often provide additional optional benefits such as dental and vision insurance, profit sharing, flexible work arrangements, continuing education opportunities, life and disability insurance, employee discounts, and wellness programs.
Health Insurance:
Retirement Savings:
These regulations and benefits are designed to attract and retain talent while ensuring a supportive work environment in Aruba.
In Aruba, employment termination and workplace regulations are governed by the Civil Code of Aruba and the Ordinance on Termination of Employment Agreements. Employers must have valid reasons for dismissal, such as urgent misconduct, economic downsizing approved by the Department of Labor and Research (DAO), or mutual agreement. Notice periods vary by length of service, ranging from one to four months. Employees are entitled to severance pay unless dismissed for fault, calculated based on years of service.
Employers must obtain DAO approval for most terminations, and Aruban law protects against discrimination, including on the basis of sexual orientation and gender identity. Employers are responsible for preventing workplace discrimination and ensuring a safe work environment, which includes adhering to regulations on work hours, rest periods, and ergonomic practices. The standard workweek is capped at 45 hours, with mandatory rest periods and safety measures enforced by entities like the Inspectorate SZW and the Social Security Department. Employees have rights to a safe workplace, can refuse unsafe work, and report hazardous conditions without retaliation.
Aruba is adapting to the rise in remote work, though it currently lacks specific laws to regulate this practice. The existing Labor Ordinance does not address remote work directly, leading to uncertainties about work hours, equipment provision, and other issues. Despite this, the island's robust telecommunications infrastructure supports remote work effectively. Employers are encouraged to develop clear remote work policies covering various aspects, including communication, data security, and health and safety. Additionally, flexible work arrangements like part-time work, flexitime, and job sharing are mentioned, but also lack specific regulations. As remote work continues to grow, there may be future legislative developments to provide clearer guidelines and ensure both employer and employee interests are protected.
Aruba's Labor Laws Overview: Aruba's labor laws, as outlined in the Labor Contract Ordinance, set standard working hours based on the structure of the workweek. For a five-day workweek, the limit is 42.5 hours, for a six-day workweek, it's 45 hours, and for a four-day workweek, it's 36 hours.
Overtime Regulations: Overtime is paid at 150% of the regular hourly wage for work outside standard hours, and 200% for work on Sundays, public holidays, or rest days. Overtime is not counted for periods under 15 minutes unless it exceeds this duration.
Maximum Working Hours: The total of standard and overtime hours cannot exceed 55 hours over four weeks, with possible extensions to 60 hours per week through government authorization.
Compensatory Time Off: Instead of financial compensation for overtime, employees may receive 1.5 hours of paid time off for each hour of overtime worked.
Rest Periods and Breaks: Employees are entitled to a minimum daily rest of 11 consecutive hours, including midnight to 6:00 am. Workers must receive a 30-minute break after five continuous hours of work, and breaks under 15 minutes are not recognized as official breaks.
Night and Weekend Work: Night shifts are capped at 8 hours, with specific rest periods required after shifts. Night work is limited to 14 shifts within four weeks. Work on Sundays or designated rest days must be compensated at double the regular hourly rate.
Understanding and implementing market competitive salaries in Aruba is essential for attracting and retaining skilled employees. These salaries are influenced by industry standards, skillset and experience, educational attainment, and location. Competitive salaries not only help in attracting top talent but also in boosting employee morale and enhancing employer branding.
To determine competitive salaries, employers can utilize resources such as salary surveys, job boards, and recruitment agencies. Additionally, understanding the Minimum Wage Ordinance in Aruba is crucial, as it sets the legal minimum wages for various categories of workers, effective from January 1, 2024.
Employers in Aruba also enhance compensation packages with bonuses and allowances, including performance-based bonuses, non-cash bonuses like company cars, and various allowances for meals, communication, and transportation. These benefits are tailored to meet the needs of different industries and employee roles.
Aruban labor laws dictate payroll practices, requiring at least monthly salary payments and outlining mandatory deductions such as social security and income tax. Employers must also adhere to regulations regarding overtime, public holiday pay, and paid leave, ensuring compliance and employee satisfaction.
In Aruba, employment termination and severance pay are regulated by the Landsverordening Burgerlijke Dienstbetrekking (LBDB) and the Landsverordening Bezoldiging Landsdienaren (LBL).
Notice Periods:
Exceptions and Agreements:
Severance Pay:
Documentation and Finalization:
Additional Considerations:
Consultation with legal or HR professionals is recommended for specific cases, especially considering variations in collective bargaining agreements and industry-specific rules.
In Aruba, the classification of workers as either employees or independent contractors is crucial due to its impact on labor rights, social security contributions, and tax implications. The distinction is based on factors such as control versus independence, integration versus independence of business, and economic dependence versus independence.
Control vs. Independence: Employees are under the employer's control regarding work hours, methods, and location, whereas independent contractors operate autonomously and control their work methods and schedules.
Integration vs. Independence of Business: Employees use the employer's equipment and are part of the business structure, while independent contractors use their own tools and maintain a separate business entity.
Economic Dependence vs. Independence: Employees depend on their employer for regular income, whereas independent contractors bear financial risks and their income depends on project completion and client acquisition.
Aruba's legal framework does not provide a definitive test for classification but uses a totality of the facts approach to determine the nature of the working relationship.
Contract Structures for Independent Contractors:
Negotiation Practices for Independent Contractors:
Common Industries for Independent Contractors:
Intellectual Property (IP):
Tax Obligations:
Insurance Options:
Freelancers and independent contractors in Aruba are advised to consult with legal and tax professionals to navigate these aspects effectively.
Aruba's health and safety laws are designed to protect both residents and visitors, with the Aruban Civil Code and the Safety Ordinance providing the framework for employer-employee relationships and specific employer responsibilities. The Aruba Health & Happiness Code is a certification program that mandates businesses to follow strict health protocols, including regular inspections and self-assessments.
Employers in Aruba are required to ensure a safe working environment, conduct risk assessments, provide necessary training and personal protective equipment (PPE), and report any accidents or illnesses. Employees have rights to a safe workplace, training on safety, and involvement in health and safety matters without fear of negative consequences.
The Directorate of Labor and Research (DAO) and the Department of Public Health are key regulatory bodies enforcing these laws. Industry-specific regulations apply to sectors like construction, healthcare, and hospitality, addressing unique risks associated with each.
Aruba emphasizes continuous improvement in occupational health and safety (OHS) standards, with regular updates to the Aruba Health & Happiness Code and collaborative efforts among government agencies, employers, and workers to enhance safety across industries. Inspections by the DAO are crucial for compliance and safety, focusing on various workplace conditions and adherence to safety protocols.
In cases of workplace accidents, immediate reporting to the DAO is mandatory, followed by a detailed investigation to prevent future incidents. Employees injured at work are entitled to compensation, which covers medical expenses and disability benefits, though the process can be challenging due to administrative complexities and limited protections for informal workers.
In Aruba, labor disputes are managed by the Court of First Instance, which handles both individual and collective labor disputes, including issues like wrongful termination and discrimination. The court also deals with mediation, conciliation, and arbitration as methods of dispute resolution. Additionally, compliance audits and inspections are crucial in Aruba for maintaining regulatory compliance, mitigating risks, and promoting operational efficiency. These are conducted by various government agencies, external auditors, and internal audit teams. The frequency of these audits and inspections varies based on the nature of the business and regulatory requirements.
Aruba lacks comprehensive whistleblower protection laws, particularly for the private sector, which creates risks for those reporting misconduct. Recommendations include advocating for stronger legal protections for whistleblowers and promoting awareness of the importance of whistleblowing.
Aruba has ratified key UN conventions related to labor standards but has not ratified all ILO Core Conventions. Its domestic labor laws reflect the principles of these conventions, emphasizing non-discrimination, fair working conditions, and basic worker rights. However, there are areas like minimum wage standards and occupational health and safety that could benefit from further alignment with international standards. Aruba could engage more with international bodies like the ILO to strengthen its labor legislation framework.
Aruba's workplace communication style is characterized by a blend of directness and respect, formality mixed with friendliness, and a strong emphasis on non-verbal cues. Here are the key aspects:
Directness with Respect: Arubans communicate clearly and concisely, maintaining a respectful and friendly tone to foster transparency and build trust.
Formality with a Friendly Twist: Initial interactions are formal, using titles like "Mr." or "Ms.," but may become more informal as relationships develop. Humor and friendliness are integral, enhancing the work environment.
Non-Verbal Communication: Expressive body language, such as eye contact and open gestures, plays a crucial role in communication, reflecting the cultural value of "famia" (family) and signaling warmth and approachability.
In negotiations, Arubans prioritize relationship building, preferring a win-win approach and avoiding aggressive tactics. Patience, cultural sensitivity, and finding common ground are essential for successful business outcomes. Respect for hierarchy coexists with a collaborative spirit in business structures, influenced by Aruba's colonial history under Dutch rule. Decision-making often involves senior management, but input from various levels is valued.
Leadership in Aruba combines authority with approachability, focusing on team success and open communication. Understanding Aruban national holidays and cultural observances, such as Carnival and Daria, is also crucial as they can affect business operations and schedules.
Frequently Asked Questions for Employer of Record services in Aruba
When using an Employer of Record (EOR) in Aruba, such as Rivermate, the EOR takes on the responsibility of handling the filing and payment of employees' taxes and social insurance contributions. This includes ensuring compliance with local tax laws and regulations, calculating the appropriate amounts for income tax, and making the necessary deductions from employees' salaries. The EOR also manages the contributions to Aruba's social insurance programs, which cover benefits such as healthcare, pensions, and unemployment insurance. By managing these administrative tasks, the EOR helps employers remain compliant with Aruban employment laws and reduces the administrative burden on the client company.
Yes, it is possible to hire independent contractors in Aruba. However, there are several important considerations to keep in mind when doing so. Independent contractors in Aruba are typically self-employed individuals who provide services to clients under a contract for services, rather than being employees under a contract of employment. Here are some key points to consider:
Legal Classification: It is crucial to correctly classify workers as independent contractors rather than employees. Misclassification can lead to legal and financial repercussions, including fines and back payments for taxes and social security contributions.
Contractual Agreement: A clear and comprehensive contract should be in place outlining the scope of work, payment terms, duration of the contract, and other relevant conditions. This helps in defining the relationship and expectations between the contractor and the hiring entity.
Taxation: Independent contractors are responsible for their own tax filings and payments. They must register with the local tax authorities and ensure compliance with Aruba's tax regulations. Employers do not withhold taxes for independent contractors.
Social Security and Benefits: Independent contractors are not entitled to employee benefits such as health insurance, paid leave, or social security contributions from the hiring entity. They must manage their own social security and insurance arrangements.
Work Permits and Visas: If the independent contractor is a foreign national, they must ensure they have the appropriate work permits and visas to legally provide services in Aruba.
Local Labor Laws: While independent contractors are not covered by the same labor laws as employees, it is important to ensure that the contractual relationship does not inadvertently create an employer-employee relationship, which would subject the hiring entity to additional legal obligations.
Using an Employer of Record (EOR) service like Rivermate can simplify the process of hiring independent contractors in Aruba. An EOR can help ensure compliance with local laws, manage payroll and tax obligations, and provide guidance on best practices for contracting. This can mitigate risks and administrative burdens for companies looking to engage independent contractors in Aruba.
Setting up a company in Aruba involves several steps and can take a variable amount of time depending on the complexity of the business and the efficiency of the processes. Here is a detailed timeline for setting up a company in Aruba:
Business Plan and Feasibility Study (1-2 weeks):
Choosing a Business Structure (1 week):
Name Reservation (1-2 days):
Drafting Articles of Incorporation (1-2 weeks):
Notarization of Documents (1 week):
Registration with the Chamber of Commerce (1-2 weeks):
Tax Registration (1-2 weeks):
Social Security Registration (1-2 weeks):
Opening a Bank Account (1-2 weeks):
Obtaining Necessary Permits and Licenses (Variable):
Hiring Employees (Variable):
Overall, the entire process of setting up a company in Aruba can take anywhere from 2 to 3 months, assuming there are no significant delays or complications. Utilizing the services of an Employer of Record (EOR) like Rivermate can streamline this process, as they handle many of the administrative and compliance-related tasks, allowing you to focus on your core business activities.
Employing someone in Aruba involves several costs that employers need to consider. These costs can be broadly categorized into direct compensation, statutory benefits, and administrative expenses. Here’s a detailed breakdown:
Direct Compensation:
Statutory Benefits:
Administrative Expenses:
Miscellaneous Costs:
Using an Employer of Record (EOR) like Rivermate can help manage these costs effectively. An EOR handles all aspects of employment, including payroll, benefits administration, compliance with local labor laws, and other HR functions. This can lead to significant savings in time and resources, allowing businesses to focus on their core operations while ensuring that all employment-related obligations are met efficiently and accurately.
Rivermate, as an Employer of Record (EOR) in Aruba, ensures HR compliance through a comprehensive understanding and application of local labor laws and regulations. Here are several ways Rivermate achieves this:
Local Expertise: Rivermate employs local HR professionals who are well-versed in Aruban labor laws, including the Civil Code of Aruba, which governs employment relationships. This local expertise ensures that all employment practices are compliant with national regulations.
Employment Contracts: Rivermate prepares and manages employment contracts that comply with Aruban legal requirements. This includes ensuring that contracts are written in the appropriate language, typically Dutch or Papiamento, and include all necessary terms such as job description, salary, benefits, and termination conditions.
Payroll Management: Rivermate handles payroll processing in accordance with Aruban tax laws and social security regulations. This includes accurate calculation and timely payment of wages, as well as deductions for income tax, social security contributions, and other statutory requirements.
Tax Compliance: Rivermate ensures that all tax obligations are met, including the filing of necessary tax returns and payment of income tax, social security, and other mandatory contributions. This helps prevent any legal issues related to tax evasion or non-compliance.
Employee Benefits: Rivermate ensures that employees receive all mandatory benefits as required by Aruban law, such as vacation leave, sick leave, maternity leave, and other statutory entitlements. They also manage any additional benefits that may be part of the employment package.
Labor Relations: Rivermate manages labor relations and ensures compliance with collective bargaining agreements if applicable. They handle any disputes or grievances in accordance with local labor laws and aim to maintain harmonious employer-employee relationships.
Health and Safety Compliance: Rivermate ensures that workplace health and safety standards are met, in line with Aruban regulations. This includes implementing necessary safety measures and conducting regular audits to ensure a safe working environment.
Termination Procedures: Rivermate manages the termination process in compliance with Aruban labor laws, ensuring that any dismissals are conducted fairly and legally. This includes providing the required notice period, severance pay, and handling any potential disputes.
Continuous Monitoring and Updates: Rivermate continuously monitors changes in Aruban labor laws and regulations to ensure ongoing compliance. They update their practices and policies accordingly to reflect any new legal requirements.
By leveraging Rivermate's services, companies can confidently expand their operations in Aruba, knowing that all HR and employment-related matters are handled in full compliance with local laws. This minimizes legal risks and allows businesses to focus on their core activities.
HR compliance in Aruba refers to the adherence to the local labor laws, regulations, and employment standards set by the Aruban government. This includes ensuring that employment contracts, workplace policies, employee benefits, and payroll practices meet the legal requirements. Key aspects of HR compliance in Aruba include:
Employment Contracts: Employers must provide written employment contracts that outline the terms and conditions of employment, including job duties, salary, working hours, and termination procedures.
Working Hours and Overtime: The standard working hours in Aruba are typically 40 hours per week. Employers must comply with regulations regarding overtime pay, which is usually at a higher rate than regular pay.
Minimum Wage: Employers must adhere to the minimum wage laws in Aruba, ensuring that all employees are paid at least the minimum wage set by the government.
Leave Entitlements: Employees in Aruba are entitled to various types of leave, including annual leave, sick leave, maternity leave, and public holidays. Employers must ensure that these entitlements are provided as per the legal requirements.
Health and Safety: Employers are responsible for providing a safe and healthy work environment. This includes complying with occupational health and safety regulations and ensuring that workplace hazards are minimized.
Social Security and Taxes: Employers must register employees with the social security system and ensure that the appropriate contributions are made. Additionally, employers are responsible for withholding and remitting income taxes on behalf of their employees.
Termination and Severance: The termination of employment must be conducted in accordance with Aruban labor laws. This includes providing notice periods and severance pay where applicable.
Importance of HR Compliance in Aruba:
Legal Protection: Adhering to HR compliance helps protect the company from legal disputes and potential lawsuits. Non-compliance can result in significant fines, penalties, and damage to the company's reputation.
Employee Satisfaction: Compliance with labor laws ensures that employees are treated fairly and receive their entitled benefits. This can lead to higher employee satisfaction, retention, and productivity.
Reputation Management: Companies that comply with local labor laws are viewed more favorably by employees, customers, and the community. This can enhance the company's reputation and attract top talent.
Operational Efficiency: By following established HR practices and legal requirements, companies can streamline their HR processes, reduce administrative burdens, and focus on core business activities.
Risk Mitigation: Compliance helps mitigate risks associated with non-compliance, such as financial penalties, legal disputes, and operational disruptions. It ensures that the company operates within the legal framework and avoids potential pitfalls.
Using an Employer of Record (EOR) like Rivermate in Aruba can significantly simplify HR compliance. An EOR takes on the responsibility of ensuring that all employment practices adhere to local laws and regulations. This includes managing payroll, benefits, taxes, and other HR functions, allowing companies to focus on their core business activities while ensuring full compliance with Aruban labor laws.
In Aruba, employers have several options for hiring workers, each with its own set of legal and administrative requirements. Here are the primary methods:
Direct Employment:
Temporary Employment Agencies:
Independent Contractors:
Employer of Record (EOR) Services:
Compliance with Local Laws:
Simplified Administration:
Cost-Effective:
Faster Onboarding:
Risk Mitigation:
Local Expertise:
In summary, while there are multiple options for hiring workers in Aruba, using an Employer of Record like Rivermate offers significant advantages in terms of compliance, administrative simplicity, cost-effectiveness, and risk mitigation. This makes it an attractive option for companies looking to hire in Aruba efficiently and legally.
Yes, employees in Aruba receive all their rights and benefits when employed through an Employer of Record (EOR) like Rivermate. An EOR ensures compliance with local labor laws and regulations, which is crucial in a country like Aruba where employment laws are designed to protect workers' rights comprehensively.
Here are some key aspects of how an EOR ensures employees receive their rights and benefits in Aruba:
Compliance with Labor Laws: An EOR like Rivermate ensures that all employment contracts adhere to Aruban labor laws, which include regulations on working hours, overtime, minimum wage, and termination procedures. This compliance guarantees that employees are treated fairly and legally.
Social Security and Benefits: In Aruba, employers are required to contribute to social security schemes, which cover health insurance, pensions, and other social benefits. An EOR manages these contributions, ensuring that employees receive their entitled benefits without any administrative burden on the employer.
Paid Leave: Aruban labor laws mandate paid leave, including vacation days, sick leave, and maternity/paternity leave. An EOR ensures that these entitlements are provided to employees as per the legal requirements.
Workplace Safety and Health: Employers in Aruba must adhere to occupational safety and health regulations. An EOR ensures that these standards are met, providing a safe working environment for employees.
Tax Compliance: An EOR handles all payroll and tax-related matters, ensuring that employees' income taxes are correctly calculated and remitted to the Aruban tax authorities. This compliance helps employees avoid any legal issues related to tax evasion or underpayment.
Employee Support and HR Services: An EOR provides comprehensive HR support, including handling grievances, performance management, and career development. This support ensures that employees have access to necessary resources and assistance, promoting a positive work environment.
By using an EOR like Rivermate in Aruba, employers can be confident that their employees are receiving all their legal rights and benefits, while also ensuring that the company remains compliant with local regulations. This arrangement not only protects the employees but also mitigates risks for the employer, making it a beneficial solution for both parties.
When a company uses an Employer of Record (EOR) service like Rivermate in Aruba, several legal responsibilities are effectively managed by the EOR, simplifying the company's obligations. Here are the key legal responsibilities and how they are handled:
Employment Contracts: The EOR is responsible for drafting and maintaining compliant employment contracts in accordance with Aruban labor laws. This includes ensuring that contracts include all necessary terms and conditions, such as job description, salary, benefits, working hours, and termination clauses.
Payroll and Tax Compliance: The EOR manages payroll processing, ensuring that employees are paid accurately and on time. They also handle the calculation and withholding of income taxes, social security contributions, and other mandatory deductions, ensuring compliance with Aruban tax regulations.
Work Permits and Visas: For foreign employees, the EOR assists with obtaining the necessary work permits and visas. They ensure that all documentation is correctly filed and that the company complies with immigration laws in Aruba.
Employee Benefits: The EOR ensures that employees receive all mandatory benefits as required by Aruban law, such as health insurance, pension contributions, and paid leave. They also manage any additional benefits that the company wishes to offer.
Labor Law Compliance: The EOR stays updated on changes in Aruban labor laws and ensures that the company remains compliant. This includes adherence to regulations regarding working hours, overtime, minimum wage, health and safety standards, and anti-discrimination laws.
Termination and Severance: The EOR handles the termination process, ensuring that it is conducted in accordance with Aruban labor laws. They manage the calculation and payment of any severance pay or other entitlements due to the employee upon termination.
Record Keeping: The EOR maintains accurate and up-to-date records of all employment-related documents, including contracts, payroll records, tax filings, and employee benefits. This ensures that the company is prepared for any audits or inspections by Aruban authorities.
Dispute Resolution: In the event of an employment dispute, the EOR provides support and guidance to ensure that the issue is resolved in compliance with Aruban labor laws. They may also represent the company in negotiations or legal proceedings if necessary.
By using an EOR like Rivermate in Aruba, a company can significantly reduce its administrative burden and ensure full compliance with local employment laws. This allows the company to focus on its core business activities while the EOR handles the complexities of human resource management and legal compliance.
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