Employer of Record in Sint Maarten (Dutch Part)

An Employer of Record (EOR) legally employs workers on your behalf in Sint Maarten. This means you can hire talent in the country without setting up a local legal entity. The EOR handles all the legal and HR responsibilities that come with employment. This includes payroll, taxes, benefits, and compliance with local labor laws. For companies looking to hire in Sint Maarten, an EOR like Rivermate simplifies the process, allowing you to focus on managing your team and growing your business.

How an Employer of Record (EOR) Works in Sint Maarten (Dutch Part)

Using an EOR in Sint Maarten follows a straightforward process. The EOR becomes the legal employer, while you manage your employee's day-to-day work.

Here is how it works:

1. You Find the Talent: You recruit and select the candidate you want to hire in Sint Maarten.
2. The EOR Hires Your Candidate: The EOR legally hires the employee through a local, compliant employment contract.
3. Onboarding is Handled: The EOR manages all the necessary paperwork for onboarding, including payroll setup, tax registration, and benefits enrollment.
4. The EOR Manages HR and Payroll: The EOR takes care of monthly payroll, tax withholdings, social security contributions, and ensures compliance with all local regulations.
5. You Manage Your Team: You direct your employee's daily tasks, projects, and performance, just like any other team member.
6. Ongoing Support: The EOR provides continuous support for any HR-related questions or issues that may arise, ensuring everything stays compliant with Sint Maarten's labor laws.

Why use an Employer of Record in Sint Maarten (Dutch Part)

Using an EOR in Sint Maarten allows your business to expand into a new market quickly and compliantly. It removes the significant administrative burden and financial costs associated with establishing a legal entity in a new country. This lets you test the market or secure top talent without a major upfront investment.

Here are some key benefits:

• Enter the Market Faster: You can hire employees and start operations in days, not months.
• Ensure Full Compliance: EORs are experts in local labor laws, covering everything from employment contracts to termination procedures. The Government of Sint Maarten outlines various key labor laws employers must follow, and an EOR ensures you meet all these obligations. You can find more information on the official government website at https://www.sintmaartengov.org/.
• Reduce Costs: Avoid the high costs of setting up and maintaining a legal entity, including legal fees, registration, and local accounting services.
• Simplify HR and Admin: The EOR handles all payroll, tax, and benefits administration, freeing up your time to focus on your business goals.
• Attract Top Talent: Offer competitive and compliant benefits packages that meet local standards and expectations, making your company more attractive to skilled professionals in Sint Maarten.

Rivermate's transparent pricing model eliminates complexity with a single, competitive monthly fee per employee. Unlike traditional PEO providers, our pricing in Sint Maarten (Dutch Part) includes comprehensive HR support, benefits administration, compliance management, and access to our proprietary dashboard for real-time workforce analytics. No hidden costs, no setup fees—just straightforward pricing that scales with your business needs while ensuring full legal compliance in Sint Maarten (Dutch Part).

Hiring in Sint Maarten is straightforward when you understand the local labor laws. The island's economy thrives on tourism, creating many jobs in hospitality and retail. As a country within the Kingdom of the Netherlands, Sint Maarten's legal framework has Dutch influences. This guide will walk you through the essentials of hiring employees in Sint Maarten.

Employment contracts & must-have clauses

While you can make oral employment agreements, a written contract is always better for clarity. The law in Sint Maarten requires specific information in employment agreements to protect both you and your employees.

There are two main types of employment contracts:

• Fixed-term contracts: These have a specific end date and are often used for temporary or seasonal work. There are limits on how many times you can renew a fixed-term contract before it becomes an indefinite contract.
• Indefinite contracts: These are permanent contracts with no set end date and are the most common type of employment agreement.

Your employment contracts must include the following clauses:

• Names and addresses of both the employer and employee
• Place of work
• Job title or a description of duties
• Start date of employment
• Duration of the contract (for fixed-term agreements)
• Salary or wage amount and how often it will be paid
• Normal working hours
• Number of paid vacation days

Probation periods

You can include a probationary period at the start of an employment relationship. This allows both you and the new employee to see if the job is a good fit. During this time, either party can end the contract without notice.

Here are the rules for probation periods:

To be valid, the probation period must be agreed upon in writing in the employment contract.

Working hours & overtime

The standard workweek in Sint Maarten is 40 hours, typically spread over five 8-hour days. However, there are different rules for non-schedule and schedule workers.

• Non-schedule workers have a regular 40-hour workweek. Including overtime, they can work a maximum of 11 hours per day and 50 hours per week.
• Schedule workers may work at different hours outside of a typical office schedule and have a 45-hour workweek on average.

Any work done beyond the standard hours is considered overtime. Overtime pay is calculated as follows:

• Weekdays: 150% of the normal hourly rate.
• Sundays and Public Holidays: 200% of the normal hourly rate.

Public & regional holidays

Your employees are entitled to paid time off for public holidays. Here is a list of the public holidays in Sint Maarten for 2025:

• January 1: New Year's Day
• April 18: Good Friday
• April 20: Easter Sunday
• April 21: Easter Monday
• April 26: King's Day
• April 30: Carnival Day
• May 1: Labour Day
• May 29: Ascension Day
• June 8: Whit Sunday
• July 1: Emancipation Day
• October 13: Constitution Day
• November 11: St. Martin's Day
• December 25: Christmas Day
• December 26: Boxing Day

Hiring contractors in Sint Maarten (Dutch Part)

Hiring independent contractors can offer your business flexibility. Contractors are not covered by the same labor laws as employees, meaning they are not entitled to benefits like paid leave or sick pay.

However, you must be careful to classify workers correctly. Even if you have a service contract, the relationship might be legally considered an employment contract if it meets certain criteria. The courts will look at the actual working relationship, not just the contract's title. Misclassifying an employee as a contractor can lead to significant legal and financial penalties, including back taxes and fines.

An Employer of Record (EOR) can help you mitigate this risk. An EOR ensures that your workers are classified correctly according to Sint Maarten's labor laws. This helps you avoid the legal and financial consequences of misclassification, allowing you to focus on your business.

Navigating compensation and payroll in Sint Maarten requires a clear understanding of local rules. You need to know the correct payroll schedule, how to handle overtime, and the proper tax deductions. Getting these details right is key to keeping your business compliant and your employees happy.

Payroll cycles & wage structure

The most common payroll cycle in Sint Maarten is monthly. You will typically pay your employees once a month, often near the end of the month. While less common, some businesses, especially in hospitality, may use a bi-weekly schedule.

Payments are usually made by direct bank transfer to a local bank account. You must provide employees with a payslip that shows their gross salary, all deductions, and their net pay.

In addition to base salaries, you may offer other types of compensation:

• Vacation Allowance: This is often a required payment, typically 8% of an employee's annual salary.
• 13th Month Salary: While not always required by law, a 13th-month salary is a common practice and often expected by employees.
• Allowances: You might offer allowances for transportation or housing to attract and retain employees.
• Performance Bonuses: These are discretionary bonuses based on individual or company performance.

Overtime & minimums

The standard workweek in Sint Maarten is 40 hours. Any hours worked beyond the standard are considered overtime.

• Overtime Pay: You must pay employees at least 150% of their regular hourly wage for overtime hours.
• Sunday Work: For work on Sundays, the typical premium rate is 200% of the regular hourly wage.
• Minimum Wage: Sint Maarten has a national minimum wage. As of early 2025, the minimum wage is approximately NAF 9.00 per hour. This rate is subject to change by the government.

Employer taxes and contributions

As an employer in Sint Maarten, you are responsible for withholding and remitting several social security contributions. These contributions are based on an employee's gross salary.

Employee taxes and deductions

You must withhold wage tax and social security contributions from your employees' salaries. The wage tax is a prepayment of their annual income tax liability. Sint Maarten uses a progressive tax system, meaning higher earners pay a larger percentage of their income in taxes.

Here are the primary employee deductions:

In Sint Maarten, your employee benefits and leave are a mix of required protections and extra perks. The government sets minimum standards for things like vacation time, sick days, and social security. Many companies, however, offer more than the basics to attract and keep good people. This creates a benefits landscape where everyone has a safety net, but there's also room for employers to stand out.

Statutory Leave

The law in Sint Maarten says you must give your employees certain types of paid time off.

• Annual Vacation Leave: Employees get at least 15 paid vacation days each year. They also typically receive a vacation allowance, which is often 8% of their annual salary.
• Sick Leave: If an employee is sick, you are generally required to pay 100% of their wages for up to 52 weeks. A doctor's note is usually needed after two or three days.
• Maternity Leave: Female employees are entitled to 12 to 16 weeks of paid maternity leave. This time is typically split before and after childbirth.
• Paternity Leave: Fathers can take a short period of paid leave after their child is born, often around 2 to 7 days.

Public Holidays & Regional Holidays

Employees in Sint Maarten get a paid day off for public holidays. If they have to work, they are usually paid at a higher rate.

Typical Supplemental Benefits

Beyond the required benefits, many employers offer additional perks. Here’s a look at what’s required by law versus what’s often added.

How an EOR Can Help with Setting Up Benefits

Setting up a benefits package in a new country can be tricky. An Employer of Record (EOR) simplifies this process for you.

An EOR already understands the local laws and market. They can:

• Ensure you comply with all of Sint Maarten's labor laws.
• Manage payroll and social security contributions.
• Offer competitive benefits packages to attract local talent.
• Handle the administrative work of managing leave and benefits.

Using an EOR means you can offer your team in Sint Maarten great benefits without becoming an expert in local regulations. It saves you time and reduces risk.

Ending a work relationship in Sint Maarten has specific rules you need to follow. The process involves clear communication, respecting legal notice periods, and providing severance pay when required. Both you and your employee have rights and obligations under the law to ensure a fair and smooth exit process.

Notice periods

When you decide to end an employment contract, you must provide a written notice period. The length of this period depends on how long the employee has worked for you.

During the notice period, the employment contract continues as usual, and both you and the employee must fulfill your duties.

In some specific cases, like dismissal for an urgent reason, a notice period is not required. However, you must inform the employee of the reason immediately.

Severance pay

If you terminate an employee's contract without a cause like serious misconduct, they are entitled to severance pay. This payment is calculated based on the employee's salary and their years of service.

The standard calculation is one week's salary for each year of service.

How Rivermate handles compliant exits

When you partner with an Employer of Record like Rivermate, we manage the entire offboarding process for you. We make sure that every step complies with Sint Maarten's labor laws.

Here is how we handle it:

• Legal Compliance: We ensure that all termination procedures, including notice periods and severance pay, meet the legal requirements.
• Documentation: We handle all the necessary paperwork to document the termination properly.
• Dispute Resolution: In case of any disagreements, we provide legal support and guidance to resolve the issue.

Our goal is to make the exit process clear, compliant, and respectful for both you and your employee.

Navigating the visa and work permit process in Sint Maarten requires a clear understanding of your obligations. The system is designed to protect the local job market, so employers must demonstrate a genuine need for a foreign worker. This means proving you have made an effort to hire a qualified local resident first. The work permit allows an individual to work, but they will also need a residence permit to live in Sint Maarten and a visa to enter, depending on their nationality.

Employment visas & sponsorship realities

An employer in Sint Maarten must sponsor the work permit application for a foreign employee. This is a key responsibility. The government needs to see that you are a legally registered company and have a real need for an international hire.

Here's what you need to know:

• Local Market First: You must prove that you advertised the position locally and could not find a suitable candidate.
• Employer-Specific: The work permit is tied to your company and the specific job. If the employee leaves the job, the permit is no longer valid.
• EOR Sponsorship: An Employer of Record (EOR) can act as the legal employer and sponsor work permits. This is a practical route for companies that do not have a legal entity in Sint Maarten. The EOR handles the application process, but the ultimate approval comes from the Department of Labor Affairs.
• Extensive Documentation: Be prepared to provide a lot of paperwork. This includes the employee's passport, qualifications, and medical records, as well as your company's business registration and financial statements.

Some individuals are exempt from needing a work permit:

• Dutch citizens.
• U.S. citizens with legal residency in Sint Maarten.
• Individuals with a permanent residence permit.
• People married to a Dutch citizen who is a legal resident.

Business travel compliance

For short-term visits, the rules are more straightforward. Sint Maarten is not part of the Schengen Area, but it has similar visa policies.

• Short Stays: Visitors can typically stay for up to 90 days within a 180-day period for business meetings or tourism.
• Visa Requirements: Whether a visa is needed depends on the traveler's nationality. Citizens of the EU, EEA, and Switzerland can enter without a visa. Many other countries also have visa exemption agreements for short stays.
• No Work Allowed: It is important to remember that business visitors are not permitted to work. The purpose of the visit should be limited to activities like attending meetings, negotiations, or conferences.