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Aruba is a member nation of the Kingdom of the Netherlands, geographically situated in the Caribbean Sea's mid-south, around 29 kilometers (18 miles) north of Venezuela's Paraguaná peninsula and 80 kilometers (50 miles) northwest of Curaçao. It is 32 kilometers (20 miles) long from northwestern to southeastern end and 10 kilometers (6 miles) broad at its widest point. Aruba is part of the ABC islands, which also include Bonaire and Curaçao. These and the other three Dutch significant Caribbean islands are frequently referred to as the Dutch Caribbean, with Aruba accounting for around one-third of the population. It became a component nation of the Kingdom of the Netherlands in 1986, and was given the legal name the Country of Aruba.
Aruba, together with the Netherlands, Curaçao, and Sint Maarten, forms the Kingdom of the Netherlands; the residents of these nations are all Dutch nationals. Aruba has no administrative divisions but is split into eight census areas. Oranjestad is its capital.
Aruba, unlike most of the Caribbean area, has a dry climate and arid, cactus-filled environment. Because visitors to the island can anticipate bright, sunny skies all year, the climate has aided tourism. It has a land area of 179 km2 (69.1 sq mi) and a population of 101,484 people according to the 2010 Census. The population was estimated to be 116,600 in January 2019.
The Vacation Ordinance establishes the minimum number of vacation days that an employee is allowed to each year of work with the same company. Every employee is entitled to at least three times the contractual number of working days per week in vacation days, with the understanding that a six-day-a-week employee is entitled to at least fifteen vacation days per year.
During a vacation, an employee is still entitled to receive his or her income. However, a vacation allowance is not required. Furthermore, the employee is entitled to receive his income during (official) national holidays.
Aruba recognizes the following days as public holidays:
New Year's Day
G.F. Betico Croes Day
National Anthem and Flag Day
In the event that an employee is unable to execute his or her duties owing to illness (that was not caused by the employee), the employer is required to pay the employee's wage in full for a reasonable amount of time (unless otherwise stipulated in the labor agreement).
When an employee is on maternity or pregnancy leave, she is entitled to receive 100% of her salary. Pregnancy leave can be taken two to six weeks before the expected due date, and maternity leave can be taken for eight to twelve weeks after the employee gives birth. In any case, the total amount of time on leave (including both pregnancy and maternity leave) must be at least fourteen weeks.
There is no statutory paternity leave in Aruba.
Beside the mentioned terms for maternity leave, Aruba does not have any other provisions in the law regarding parental leave.
There is no legal stipulation granting the employee a specific amount of time for permitted leave in other situations (such as weddings, funerals, childbirth (fathers), and personal leave). However, unless otherwise agreed, an employee is entitled to his or her wages for a reasonable period of time if the employee was unable to work during that time due to I the fulfillment of a legal or governmental obligation that could not be fulfilled in the employee's free time, or (ii) special circumstances that were not caused by the employee's fault.
When an employee's employment is terminated, the employer is required to provide a testimonial. Employers may only reveal the cause for termination and information regarding the employee's performance of work if the employee consents.
A contract of employment must be terminated prior to the first day of the next month (if one gives notice of termination on the 15th, the notice period will not take effect on the 16th, but only on the 1st of the following month). Employers are entitled to one month's notice after five years of employment, up to a maximum of four months; employees are entitled to one month's notice.
A trial period, which is typically two months, can be agreed upon only in writing and must be identical for both parties.
Employees whose employment is terminated for reasons other than their own are entitled to the following layoff compensation. One week pay for each year of service between one and ten years; one and a quarter weeks pay for each year of service between eleven and twenty years; two weeks pay for each year of service beyond twenty years. Employers are required by this ordinance to contribute a premium of Aruban florin per year per employee to the Cessantia Fund.
In Aruba, the maximum working hours for a six-day workweek are 45 hours per week and eight hours per day. Maximum working hours for a five-day workweek are 40 hours per week and eight hours per day. Maximum working hours for a four-day workweek are 36 hours per week and nine hours per day.
Employees who work more than six hours per day should be able to take a half-hour break after five hours. A break that is less than 15 minutes in duration is not considered to be a break. Working during a break constitutes overtime.
Overtime working hours should not be more than 10 hours in a week and 4 hours in a day for a six-day workweek. For a five-day workweek, overtime working hours should be at most 15 hours in a week and 4 hours in a day. For a four-day workweek, overtime working hours should be less than 19 hours in a week and 3 hours in a day.
For overtime after working hours or during the employee's break, the compensation is 150 percent of the regular pay. The pay is 200 percent for overtime work during a public holiday or a remembrance day. If an employee has worked more than ten hours per day, he or she is entitled to a hot meal or a meal allowance, and any additional transportation costs incurred in connection with the overtime have to be compensated.
The monthly minimum wage in Aruba was set at AWG1677.60 (approximately US$926.85) per month or AWG391.25 (approximately US$216.16) per week for workers aged 18 years and older. The new minimum wage for domestic workers aged 18 and over is AWG782 (approximately US$434.45).
Employees whose employment contracts are terminated without their fault or for reasons that cannot be ascribed to them are entitled to a one-time monetary recompense known as the "cessantia" (provided the employee has been employed at least one year).
The Cessantia Ordinance (Cessantia-landsverordening) governs this payout, which is determined based on years of service. Within one year following the end of the employment agreement, the employee must collect his cessantia salary from his employer or, if his employer has been declared bankrupt, from the Social Security Bank of Aruba (SVB).
The cessantia entitlement only applies to employees who will become entitled to a pension or general old age pension following the termination of their employment agreement, provided that the pension is greater than the old age pension and that the old age pension, when deducted from the pension, is greater than twice the amount of the old age pension applicable at the time.
Legal entities in Aruba are imposed a corporate tax rate of 25 percent.
The income tax rate in Aruba ranges from 7 percent to 58.95 percent. The actual percentage depends on the income tax bracket the individual belongs to.
Tourists who require a visa must apply for and obtain a visitor visa before visiting Aruba. The visa must be applied for in person at a Kingdom of the Netherlands embassy or consulate (diplomatic mission). Certain authorized travel agencies in some countries can apply for visas on behalf of their customers. The tourist can contact a consulate or embassy of the Kingdom of the Netherlands in his country of residence or visit the websites of the Embassy or consulates concerned for more information on the visa requirements, to apply for a visa for Aruba, and for information on appointments/opening hours. Visit the Ministry of Foreign Affairs' website for addresses and websites of Dutch diplomatic missions around the world.
In the Netherlands, employment contracts must be drafted and presented in the local language. They might be indefinite or for a set period of time no greater than three years. The following are the important clauses of the employment contract:
If the contract is for a certain period of time, the term
The work environment
Working hours and overtime policies
The notice period for termination
The employee's responsibilities
Whether or whether a collective labor agreement is applicable
The employment contract may include a trial period that is no longer than one month if the contract length is two years or less, or two months if the contract term is more than two years.
There is no set length for assignments. This is usually indicated in the employment contract for fixed-term employments.