Curaçao PEO & Employer of Record

WeHG provides an International PEO and global Employer of Record service in Curaçao to companies willing to enter the Curaçao market or hire local/expat employees in this country.

Traditional approach requires establishing a subsidiary in Curaçao.  However our solution allows you to start the operations in Curaçao within days hence save time and money.  WeHG would hire candidates on your behalf while you maintain full operational control of their work. So legally they would be our employees, on our local payroll, 100% compliant but will work on your behalf. .

Curaçao fast facts

Population, million: 0,16
Land area: 444 km² 
Capital: Willemstad
Local currency: Netherlands Antillean guilder (ANG)

Curaçao faces many challenges: Curaçao is an island combatting a major issue with increasing immigration from the region, mainly from Venezuela due to the political and humanitarian crisis in this country. At the same time, Curaçao is facing emigration from islanders leaving, mostly for the Netherlands due to the economic recession on the island. Regarding the issue of migration, there are two points of view: One states 4 the population should double in the next decades and the other one states that de-population should remain constant. These two points of view are two extremes regarding the views on the issue of migration.

Hiring, Negotiating and Doing Business in Curaçao

Necessity of written employment contract

There are no requirements as to the form of an employment agreement. The employment agreement can be made in writing or verbally. However, for certain provisions (e.g. a trial period and/or penalty clauses), the written form is mandatory. The employment agreement can, in principle, be entered into for a defined period of time or for an indefinite period.

Different forms of engagement: employment, contracting, work with private entrepreneur

• Employee in permanent service
• Employee in temporary service
• Casual worker
• Independent contractor/self-employed. 

Curaçao Employment Contract

Trial period

During a trial period both the employer and the employee have the right to terminate the employment agreement immediately without giving a reason and without taking into account any notice period.

This trial period must be agreed to in writing and may not exceed two months; any stipulation to the contrary renders the entire trial period stipulation null and void.

Curaçao working hours

Employees who earn less than a certain annual income fall under the scope of the Labor Regulation and may therefore not work more hours than the statutory maximum of working hours. The Labor Regulation makes a distinction between schedule workers and non-schedule workers. Schedule workers are employees who work in accordance with a recurrent schedule (timetable) outside of regular office hours.

For non-schedule workers the maximum working hours per week calculated over a four weeks’ period is forty hours, provided the employee does not work more than ten hours a day. The period during which the employee has to work longer than six hours each day has to be interrupted after at the most five hours for a break of at least half an hour.

For schedule workers the maximum working hours calculated over a four weeks’ period is forty-five hours per week, provided the employee does not work more than ten hours a day. Any working hours beyond the above mentioned maximum hours per day and per week is deemed overtime.

Vacation leave in Curaçao

The minimum number of vacation days an employee is entitled to is regulated for all employees. Every employee is entitled to an amount of vacation days per year equal to at least three times the contracted number of working days per week, with a minimum of fifteen days per year for employees who work six days per week. During an employee’s vacation, the employee remains entitled to receive his salary. Vacation allowance, however, is not mandatory. Furthermore, during (official) national holidays the employee also remains entitled to receive his salary.

Curaçao Maternity Leave

An employee is entitled to payment of 100% of her salary when she is on pregnancy- and maternity leave. The pregnancy leave can be two to six weeks before the estimated due date and the maternity leave can be eight to twelve weeks as of the date the employee gave birth. The total amount of time on leave (pregnancy leave and maternity leave combined) must in all events be at least fourteen weeks.

Curaçao Severance Laws

Notice periods

When an employment agreement is terminated by giving notice, a notice period must be taken into account. The notice period is related to the years of service of the employee at the time of termination. The mandatory notice periods that must be taken into account by the employer are as follows:

• In case of an employment of less than five years: one month;
• In case the employee has been employed more than five but less than ten years: two months;
• In case the employment has lasted longer than ten years but less than fifteen years: three months;
• In case the employment has lasted more than fifteen years: four months.

The notice period to be taken into account by an employer may be extended, only if the extended notice period has been agreed to by parties in writing (shortening the notice period to be taken into by the employer can only take place in a collective employment agreement).

From the notice period the waiting period to obtain the required approval from the Director of the Ministry of Social Development, Labor and Welfare may be subtracted, provided that the remaining notice period will be at least one month.

Severance payments

The employee whose employment agreement is terminated without fault on his part or for a reason that cannot be attributed to him is entitled to a onetime monetary compensation known as the ‘cessantia’ (provided the employee has been employed for at least one year). This cessantia payment is regulated in the Cessantia Ordinance (Landsverordening Cessantia) and is calculated based on the years of service. The employee must claim his cessantia pay within one year after termination of the employment agreement.

For employees who will become entitled to a pension or general old age pension after termination of their employment agreement, they will only become entitled to cessantia, provided that (i) the pension is not less than the old age pension and (ii) if the old age pension, when deducted from the pension, is not less than twice the amount of the old age pension applicable at that time.

Curaçao Tax

Health Insurance Benefits in Curaçao

In the event an employee is unable to perform his/her labor due to sickness (that is not intentionally caused by the employee), the employer is obligated to continue payment of (100% of) the employee’s salary during a relative short period of time (unless otherwise stipulated in the labor agreement).

Additional Benefits in Curaçao

For other situations (such as weddings, funerals, delivery of children (fathers) and personal leave) there is no legal stipulation granting the employee a specific amount of time for permitted leave.

However, (unless agreed otherwise) an employee remains entitled to its wages for a fair short period of time, in the event the employee was not able to work during such time due to (i) the fulfillment of an obligation imposed by law or by the government which could not be fulfilled in the employee’s free time or due to (ii) special circumstances not caused by the employee’s fault.

Curaçao Holidays

• New Year’s Day
• Carnival Monday
• Good Friday
• Easter
• Easter Monday
• King’s Birthday
• Labour Day
• Ascension Day 
• Flag Day
• Curaçao Day
• Christmas Day
• 2nd Day of Christmas

Why Choose WeHireGlobally

WeHG takes care of all the onboarding hurdles, payroll, compensation and benefits, tax filing, and termination of employment. Our Employer of Record solution allows you to manage your overseas teams efficiently while minimizing cost and risk.