Informatiesessie Sxm 2010 Ingekort Engels

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Informatiesessie Sxm 2010 Ingekort Engels

  1. 1. <ul><li>NAME: KENNETH LOPES </li></ul><ul><li>DIRECTORATE OF LABOUR </li></ul><ul><li>FUNCTION: HEAD DIRECTORATE OF LABOUR SINT MAARTEN </li></ul><ul><li>TEL: 23544 </li></ul>
  2. 2. THE LABOUR LEGISLATION
  3. 3. THE LABOUR LEGISLATION <ul><ul><li>To find in: </li></ul></ul><ul><ul><ul><li>The Civil Code </li></ul></ul></ul><ul><ul><ul><li>Several public regulations such as: </li></ul></ul></ul><ul><ul><ul><ul><li>Minimum Wages Ordinance </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Vacation Regulation </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Labour Regulation 2000, </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Dismissal Law </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Severance Ordinance, </li></ul></ul></ul></ul>
  4. 4. Agreements for the performance of labour <ul><li>The Civil Code states two sorts (former three) of agreements for the performance of labour: </li></ul><ul><ul><li>the agreement of contracted work </li></ul></ul><ul><ul><li>the agreement for the performance of fixed service </li></ul></ul><ul><ul><ul><li>It generally concerns the relation between a professional and his clients (e.g. lawyer, notary, accountant, etc.) </li></ul></ul></ul><ul><ul><li>the working agreement </li></ul></ul>
  5. 5. Definition Working Agreement (Art. 1613a Civil Code) <ul><li>An agreement whereby one party, the employee, commits himself: </li></ul><ul><li>during a fixed period of time, </li></ul><ul><li>to perform work, </li></ul><ul><li>in the employ of the other party, the employer, </li></ul><ul><li>against wages. </li></ul>
  6. 6. The Working Agreement <ul><li>A working agreement should have the following elements: </li></ul><ul><ul><li>Work </li></ul></ul><ul><ul><li>Wages </li></ul></ul><ul><ul><li>Authority (supervision) element </li></ul></ul>
  7. 7. Element I: Work <ul><li>Employee must perform work </li></ul><ul><li>The work must be of value: </li></ul><ul><ul><li>employment relationship trainee is not a labour agreement. </li></ul></ul><ul><ul><ul><li>It is performed in the framework of a training and aimed at extension of own knowledge and experience </li></ul></ul></ul><ul><li>Work must be performed by the employee himself </li></ul><ul><ul><ul><li>No third party is allowed to perform the work </li></ul></ul></ul><ul><ul><ul><li>Jurisdiction: a particularly called person can replace employee </li></ul></ul></ul>
  8. 8. Element II: Wages <ul><li>Employer must take into account the provisions of the Minimum Wages Ordinance </li></ul><ul><li>Money, food, work-clothes, use of housing etc. can be elements of wages (art. 1613n C.C.) </li></ul>
  9. 9. Element III: Authority <ul><li>This is the most distinguishing feature of the working agreement. </li></ul><ul><ul><li>This element is lacking in both, in the contracted work as in the agreement for the performance of fixed service </li></ul></ul><ul><li>The employer is authorized: </li></ul><ul><ul><ul><li>to execute authority; </li></ul></ul></ul><ul><ul><ul><li>to give orders (binding indications/ instructions); </li></ul></ul></ul><ul><ul><ul><li>to supervise the work. </li></ul></ul></ul>
  10. 10. The form <ul><li>The working agreements is form free; </li></ul><ul><ul><li>Can be agreed upon verbally or in writing </li></ul></ul><ul><li>For a number of provisions the written form is prescribed, e.g.: Trial period (1615n C.C.) </li></ul>
  11. 11. Content <ul><li>Parties are free to come to an agreement regarding: </li></ul><ul><ul><li>working hours, the duration, remuneration, vacation, etc. </li></ul></ul><ul><li>Thereby they are limited by public law regulations as: </li></ul><ul><ul><li>Minimum Wages Ordinance, Vacation Regulation, Labour Regulation 2000, Dismissal Law , Severance Ordinance etc . </li></ul></ul>
  12. 12. Duration <ul><li>For a fixed or for a non-period of time. </li></ul><ul><li>Since coming into force of the Ordinance Flexibilisation of the Labour Legislation: </li></ul><ul><ul><li>Is it no longer possible to extend labour agreements for a fixed time period indefinitively; </li></ul></ul><ul><ul><li>Notice is no longer required for the termination of a extended temporary labour agreement; </li></ul></ul><ul><ul><li>The extended temporary agreement (up an till the third temporary agreement) ends automatically. </li></ul></ul>
  13. 13. Obligations of the employer (art. 1614 till art. 1614z C.C.) <ul><li>pay wages </li></ul><ul><li>protect employee against dangers </li></ul><ul><li>behave as a good employer (art. 1614y) </li></ul><ul><li>supply reference </li></ul><ul><ul><li>on request of employee </li></ul></ul><ul><ul><li>at the end of a labour agreement (art. 1614z) </li></ul></ul>
  14. 14. Reward <ul><li>Employer has the obligation to pay wages </li></ul><ul><ul><li>at least the hourly minimum wage and on time </li></ul></ul><ul><li>No work no pay (art. 1614b) </li></ul><ul><li>However, employee retains his right to wages for a relatively short period in case of: </li></ul><ul><ul><li>Sickness or accident (a couple of weeks); </li></ul></ul><ul><ul><li>Fulfillment of legal “duties” (a couple of hours); </li></ul></ul><ul><ul><li>Special circumstances (one or more days); </li></ul></ul><ul><ul><li>pregnancy and maternity leave; </li></ul></ul><ul><ul><li>Employer’s absenteeism. </li></ul></ul>
  15. 15. Obligations of the employee (art. 1615 till art. 1615d) <ul><li>perform labour to best capacity (art. 1615) </li></ul><ul><li>perform labour personally (art. 1615a) </li></ul><ul><li>stick to instructions of the employer (art. 1615b) </li></ul><ul><li>to behave himself as a good employee (art. 1615d) </li></ul>
  16. 16. Ways to terminate working agreement <ul><li>Working agreements can be terminated in the following ways: </li></ul><ul><ul><li>Mutual consent; </li></ul></ul><ul><ul><li>Death of the employee; </li></ul></ul><ul><ul><li>When the time has elapsed; </li></ul></ul><ul><ul><li>Dissolution of the working agreement by court; </li></ul></ul><ul><ul><li>Termination during the trial period; </li></ul></ul><ul><ul><li>Dismissal “on the spot” (urgent reason); </li></ul></ul><ul><ul><li>Notification. </li></ul></ul>
  17. 17. Termination when the time agreed upon has lapsed <ul><li>Working agreement terminates automatically </li></ul><ul><ul><li>Prior notice of termination is not needed </li></ul></ul><ul><ul><li>The prolonged temporary working agreements also ends automatically, except: </li></ul></ul><ul><ul><ul><li>After a series of four extended agreements, following each other within 3 months; </li></ul></ul></ul><ul><ul><ul><li>If less than 4 fixed agreements, follow each other at less than 3 months intervals and these agreements combined exceed a 36 months period </li></ul></ul></ul>
  18. 18. Termination during trial period <ul><li>Both parties can terminate the agreement immediately without giving a reason; </li></ul><ul><li>Requirements trial period (art. 1615n): </li></ul><ul><ul><ul><li>Can be agreed upon only in writing; </li></ul></ul></ul><ul><ul><ul><li>can last maximum 2 months; </li></ul></ul></ul><ul><ul><ul><li>must be for both parties just as long; </li></ul></ul></ul><ul><ul><ul><li>succeeding trial periods may not sum up longer then 2 months. </li></ul></ul></ul>
  19. 19. Termination by notification <ul><li>Dual dismissal system: </li></ul><ul><ul><li>Prior authorization is necessary (Dismissal Law) to cancel working agreements by notification (Civil Code) </li></ul></ul><ul><ul><li>For notification one must take into account: </li></ul></ul><ul><ul><ul><li>The effective date of termination </li></ul></ul></ul><ul><ul><ul><li>The terms of notification </li></ul></ul></ul><ul><ul><ul><ul><li>The period of notice (art. 1615i C.C.) </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Notice prohibitions (art. 1615h C. C. ) </li></ul></ul></ul></ul>
  20. 20. Period of notice for the Employer (1615i C. C.) <ul><li>Depends on the duration of the employment </li></ul><ul><ul><ul><li>less than 5 years: 1 month </li></ul></ul></ul><ul><ul><ul><li>more than 5, less than 10 years: 2 months </li></ul></ul></ul><ul><ul><ul><li>more than 10, but less than 15 years: 3 months </li></ul></ul></ul><ul><ul><ul><li>more than 15 years: 4 months </li></ul></ul></ul><ul><li>The period of notice for the employer: </li></ul><ul><ul><li>may only be shortened through a CLA; </li></ul></ul><ul><ul><li>can be extended through a written agreement. </li></ul></ul>
  21. 21. Period of notice for the E mployee <ul><li>1 month </li></ul><ul><li>The period of notice for the employee: </li></ul><ul><ul><li>can be shortened or extended through a written agreement ; </li></ul></ul><ul><ul><li>cannot be extended to more than 6 months. </li></ul></ul><ul><ul><ul><li>for the Employer not shorter than the double of the Employee ; </li></ul></ul></ul>
  22. 22. Notice prohibition (art. 1615h) <ul><li>Employer cannot cancel working agreements: </li></ul><ul><ul><li>in case of sickness or accident; </li></ul></ul><ul><ul><ul><li>unless sickness has lasted at least 1 year </li></ul></ul></ul><ul><ul><li>during pregnancy and maternity leave ; </li></ul></ul><ul><ul><li>during achievement of the military service of an: </li></ul></ul><ul><ul><ul><li>adult employee or employee under the age of 21 whose employment has lasted at least 6 months </li></ul></ul></ul><ul><ul><li>because of the marriage of employee; </li></ul></ul><ul><ul><li>because of membership of a trade union, and because of trade union activities unless during working hours and employer has not given authorization </li></ul></ul>
  23. 23. Minimum Wages Ordinance
  24. 24. Minimum Wages Ordinance <ul><li>Stipulates that the employer has the obligation to pay the employee at least the hourly minimum wage. </li></ul><ul><li>Since August 2001 the system of minimum wages was adapted in such way that from that date only hourly minimum wages are applicable. </li></ul><ul><li>The hourly minimum wage applies to all workers, including household personnel. </li></ul>
  25. 25. New system of minimum wages <ul><li>In the new system: </li></ul><ul><ul><li>Minimum weekly wages are determined by multiplying the number of hours worked per week by the minimum hourly wage; </li></ul></ul><ul><ul><li>Monthly wages are calculated by multiplying the weekly minimum wage by 4.33 </li></ul></ul>
  26. 26. Gross hourly minimum wage <ul><li>Differs per island territory </li></ul><ul><ul><li>Curaçao: Naf. 7.30 (21 years and over)    </li></ul></ul><ul><ul><li>Bonaire: Naf. 7.21             </li></ul></ul><ul><ul><li>Saba: Naf. 6.26 </li></ul></ul><ul><ul><li>Sint Eustatius: Naf. 5.95 </li></ul></ul><ul><ul><li>Sint Maarten: Naf. 7.96 </li></ul></ul>
  27. 27. Minimum Youth wages <ul><li>Since 1 sept. 1993 </li></ul><ul><li>Minimum Youth wages                   </li></ul><ul><ul><li>20 years: (90%)                    </li></ul></ul><ul><ul><li>19 years: (85%)          </li></ul></ul><ul><ul><li>18 years: (75%)          </li></ul></ul><ul><ul><li>17/16 years: (65%)                     </li></ul></ul>
  28. 28. Labour Regulation 2000
  29. 29. Labour Regulation 2000 (I) <ul><li>Contains rules with regards to: </li></ul><ul><ul><li>working hours, </li></ul></ul><ul><ul><li>break, </li></ul></ul><ul><ul><li>period of rest, </li></ul></ul><ul><ul><li>overtime, </li></ul></ul><ul><ul><li>labour by children and youths, </li></ul></ul><ul><ul><li>labour in full continue service, nightshift and dangerous labour by youths, </li></ul></ul><ul><ul><li>labour by domestic personnel. </li></ul></ul>
  30. 30. Labour Regulation 2000 (II) <ul><li>Applies to: </li></ul><ul><ul><li>employee with an income < then or = to the premium border of the Ordinance Sickness Insurance (art. 3); </li></ul></ul><ul><ul><li>premium limit is adapted annually; </li></ul></ul><ul><ul><li>1 jan 2010: Naf. 4.764,50 p/month (Naf. 57.174,-- p/year); </li></ul></ul><ul><li>not applicable on: </li></ul><ul><ul><li>civil servants, crew members, dockers, aviation staff and independent workers (art. 1 paragraph 2) </li></ul></ul>
  31. 31. Schedule and Non-schedule workers <ul><li>Labour Regulation 2000 make a distinction between Schedule and Non-schedule workers: </li></ul><ul><ul><li>Schedule workers: workers of which labour is performed at several times (outside office hours); </li></ul></ul><ul><ul><ul><li>before 7.00 o’clock and after 20.00 o’clock </li></ul></ul></ul><ul><ul><ul><li>on Sunday and on public holidays </li></ul></ul></ul><ul><ul><li>Non-schedule workers: workers for which the regular working hours is applied. </li></ul></ul><ul><ul><ul><li>after 7.00 but before 20.00 </li></ul></ul></ul>
  32. 32. Working hours Non-schedule workers (art. 8) <ul><li>Maximum 10 hours p/d and maximum average of 40 hours p/w calculated over a period of 4 weeks; </li></ul><ul><li>Including overtime: maximum 11 hours p/d and maximum average of 50 hours p/w, calculated over a period of 4 weeks. Calculated over a period of 13 weeks maximum 45 hours p/w </li></ul><ul><li>deviation is possible by C.L.A. </li></ul>
  33. 33. Working hours Schedule workers (art. 8) <ul><li>maximum 10 hours p/d and maximum average of 45 hours p/w calculated over a period of 4 weeks; </li></ul><ul><li>Including overtime: maximum 11 hours p/d and maximum average of 55 hours p/w, calculated over a period of 4 weeks. Calculated over a period of 13 weeks maximum 50 hours p/w. </li></ul><ul><li>deviation is possible by C.L.A. </li></ul>
  34. 34. Periods of rest Non-schedule workers (art. 9) <ul><li>the period between 20.00 o’clock in the evening and 7.00 o’clock in the morning; </li></ul><ul><li>rest day (Sundays) </li></ul><ul><li>Weekly at least two parts of a day (otherwise than Sundays) </li></ul><ul><ul><li>Six-day workweek is therefore possible </li></ul></ul><ul><li>all holidays </li></ul>
  35. 35. Periods of rest Schedule workers (art. 9) <ul><li>Daily the period outside the working hours </li></ul><ul><ul><li>the period of rest per 24 hours must be at least 11 hours </li></ul></ul><ul><ul><li>Once every 7 days this may be reduced to 8 hours </li></ul></ul><ul><li>The weekly day off </li></ul><ul><ul><li>at least once every 7 weeks on Sunday </li></ul></ul><ul><li>Weekly at least a part of a day </li></ul><ul><ul><li>Prior to or after 13.00 o’clock </li></ul></ul><ul><li>Per year at least 5 holidays </li></ul>
  36. 36. Break (art. 10) <ul><li>For both groups the same; </li></ul><ul><li>each day on which the employee performs work more than 6 hours (whether it is overtime or not), after maximum 5 hours of labour it must be interrupted by a break of at least half an hour; </li></ul><ul><li>interruption of less than 15 minutes doesn’t count as a break; </li></ul><ul><li>labour during break is considered as overtime </li></ul>
  37. 37. Overtime <ul><li>Can ocure as a result of: </li></ul><ul><ul><li>work during the period of rest of the employee, e.g.: </li></ul></ul><ul><ul><ul><li>during break </li></ul></ul></ul><ul><ul><ul><li>on a day off or parts of the day </li></ul></ul></ul><ul><ul><ul><li>on rest day </li></ul></ul></ul><ul><ul><ul><li>on holiday </li></ul></ul></ul><ul><ul><li>work longer than the maximum working hours p/d (10 hours) or p/w (average 40, 45, 48 and 55 hours ) </li></ul></ul>
  38. 38. Obligations of the employer regarding overtime (art. 16) <ul><li>A minimum of 3 hours of overtime should be paid if the employer calls upon the employee to work on a day on which the employee is free according to his schedule; </li></ul><ul><ul><li>deviation is possible by C.L.A. </li></ul></ul><ul><li>Provide a hot meal or a financial compensation if the employee performs more than 10 hours work on a day; </li></ul><ul><ul><li>deviation is possible by C.L.A. </li></ul></ul><ul><li>Instruction to work overtime has to be given as timely as possible. </li></ul><ul><ul><li>interests of the employee must be taken into consideration as much as possible. </li></ul></ul>
  39. 39. Overtime compensation (art. 15) <ul><li>Exceeding maximum working hours </li></ul><ul><li>( per day or after 4 weeks) 150% </li></ul><ul><li>work during break 150% </li></ul><ul><li>Overtime on scheduled day off 175% </li></ul><ul><li>Overtime on day of rest 200% </li></ul><ul><li>Overtime on holiday 250% </li></ul><ul><li>Overtime in combination with </li></ul><ul><li>night shift (only schedule workers) 175% </li></ul>
  40. 40. Particular provisions <ul><li>The labour regulation has further particular rules with regard to the working hours, break, period of rest etc. for: </li></ul><ul><ul><li>Stand-by shift </li></ul></ul><ul><ul><li>Labour in night shift (art. 12) </li></ul></ul><ul><ul><li>Labour in full-continue company (art. 26) </li></ul></ul><ul><ul><li>Domestic personnel (art. 25) </li></ul></ul><ul><ul><li>In addition there is also a Labour Decree Hotels, restaurants and casino’s with special rules </li></ul></ul>
  41. 41. Labour Decree Hotels, Restaurants and Casino’s (I) <ul><li>Contains rules for the company branches in the sectors hotels, restaurants and casino; </li></ul><ul><li>Working hours: </li></ul><ul><ul><li>maximum 10 hours p/day and maximum average 48 hours p/week, calculated over 4 weeks; </li></ul></ul><ul><ul><li>Including overtime: maximum 11 hours p/day and maximum average 55 hours p/week, calculated over 4 weeks. </li></ul></ul>
  42. 42. Labour Decree Hotels, Restaurants and Casino’s (II) <ul><li>break: </li></ul><ul><ul><li>on a day on which more than 6 hours of labour is performed: a break of at least half an hour, unless the service does not allow that </li></ul></ul><ul><li>Period of rest: </li></ul><ul><ul><li>once every 13 weeks on Sunday </li></ul></ul><ul><ul><li>Per 24 hours at least 11 hours rest </li></ul></ul>
  43. 43. Labour Decree Hotels, Restaurants and Casino’s (III) <ul><li>Overtime compensation: </li></ul><ul><ul><li>After the maximum working hours 150% </li></ul></ul><ul><ul><li>   (per day or after 4 weeks) </li></ul></ul><ul><ul><li>labour during break: 150% </li></ul></ul><ul><ul><li>overtime on rest day or holiday: 200% </li></ul></ul>
  44. 44. Vacation Regulation 1949
  45. 45. Vacation Regulation (art. 1) <ul><li>Applies to: </li></ul><ul><ul><li>all employees who are working on the basis of a working agreement </li></ul></ul><ul><li>Does not apply to: </li></ul><ul><ul><li>sailors </li></ul></ul><ul><ul><li>home workers </li></ul></ul><ul><ul><li>live-in children of the employer, for whom they work </li></ul></ul>
  46. 46. Minimum number of Vacation days <ul><li>For each year working consecutively with the same employer, the employee is entitled to a vacation of at least 3 times the contracted number of workdays per week with pay. </li></ul><ul><ul><li>In case of six working days per week, employee is entitled to at least 15 vacation days </li></ul></ul><ul><li>More vacation days can always be agreed upon between parties </li></ul>
  47. 47. Granting vacation (art. 4) <ul><li>Preferably consecutively; </li></ul><ul><li>Vacation can be divided; </li></ul><ul><ul><ul><li>on request of employee or when activities demand so </li></ul></ul></ul><ul><li>At least half the vacation has to be given consecutively; </li></ul><ul><li>Decision regarding the moment on which the vacation will begin, lies with the employer </li></ul><ul><ul><ul><li>after mutual consultation. </li></ul></ul></ul>
  48. 48. Loss of right to vacation (art. 3) <ul><li>The right to vacation over a previous year expires if an employee has not been to work during that year: </li></ul><ul><ul><li>Due to sickness or accident for at least 6 months; </li></ul></ul><ul><ul><li>Due to compliance with legal obligations for at least 6 weeks. </li></ul></ul>
  49. 49. Delay (art. 5) or revoke (art. 6) the vacation <ul><li>The employer can delay the date of or revoke the already started vacation: </li></ul><ul><ul><ul><li>on request of employee, or </li></ul></ul></ul><ul><ul><ul><li>due to reasons related to the company’s interest </li></ul></ul></ul><ul><ul><ul><ul><li>Employer must compensate for the travel- and hotel expenses the employee has suffered (art. 8) </li></ul></ul></ul></ul><ul><li>The vacation or the part that was not enjoyed, will be considered as revoked </li></ul><ul><ul><ul><li>In case of sickness in the meaning of the Sickness Insurance Ordinance at the beginning or during the vacation (art. 7) </li></ul></ul></ul>
  50. 50. Saving up vacation days (art. 9) <ul><li>Vacation days can be joined till a maximum of 6 times the stipulated number of workdays per week </li></ul><ul><ul><li>Vacation days above this maximum will lapse </li></ul></ul><ul><li>Employer is obligated to have the joint max. vacation be taken within 3 months after the request (6 months for company where work is done continuously) </li></ul><ul><ul><li>Employee is obligated to take this vacation, asked or unasked </li></ul></ul>
  51. 51. Saving up vacation days (II) <ul><li>The joint maximum vacation will be given consecutively and cannot be delayed or revoked, except:  </li></ul><ul><ul><li>in case of sickness </li></ul></ul>
  52. 52. Vacation days at the termination of the service (art. 10) <ul><li>All vacation days, which have not be taken, will be paid according to their value in money; </li></ul><ul><li>Part of a day will be calculated as a whole day. </li></ul>
  53. 53. Dismissal Ordinance
  54. 54. Dismissal protection <ul><li>The dismissal law is stipulated in the Civil code and the Dismissal ordinance. </li></ul><ul><li>The dismissal law protects the employee from unreasonable and arbitrary dismissal. </li></ul><ul><li>The Dismissal ordinance stipulates that i f the employer wants to dismiss an employee by giving notice, an approval from the Director of theDirectorate of Labour Affairs is generally required. </li></ul><ul><li>the employer has to apply for approval </li></ul>
  55. 55. Application of the Dismissal ordinance <ul><li>The Dismissal ordinance does not apply to: </li></ul><ul><ul><li>employee in a public corporation </li></ul></ul><ul><ul><ul><li>civil servants, labourers and employees working for the government on a labour contract </li></ul></ul></ul><ul><ul><li>educational personnel and teachers </li></ul></ul><ul><ul><li>Clergymen (e.g. priests and ministers); </li></ul></ul><ul><ul><li>employees that perform domestic labour in the household of private persons (domestic servants). </li></ul></ul><ul><ul><li>a director’s labour contract; </li></ul></ul><ul><ul><li>cases of bankruptcy </li></ul></ul><ul><ul><li>a labour contract f or a fixed period (exception on this) </li></ul></ul>
  56. 56. Dismissal reasons <ul><li>In the application for approval the employer has to state a reason for the intended dismissal </li></ul><ul><li>The three most important reasons for the intended dismissal could for instance be: </li></ul><ul><ul><li>Business-economic reasons, for instance the closing down of the company, reorganization or the reduction of economic activity as a result of decreasing business results </li></ul></ul><ul><ul><li>unfitness of the employee for the job </li></ul></ul><ul><ul><li>a disturbed work relation between employer and employee </li></ul></ul>
  57. 57. Dismissal procedure <ul><li>Employer files a substantiated request with the Directorate of Labour Affairs. For this purpose there are special forms. </li></ul><ul><li>Parties are heard by the civil servants of the Directorate. </li></ul><ul><li>Civil servant writes a report with his findings and conclusions </li></ul><ul><li>The dismissal file will then be sent to the dismissal commission. </li></ul><ul><li>The commission advises the Director of the Directorate of Labour Affairs. </li></ul><ul><li>The Director can grant or refuse a permission for dismissal. </li></ul><ul><li>The Director decides within 2 weeks after receiving the advise and within 6 weeks after receiving the request. </li></ul><ul><li>Employer and employee(s) will be notified of the decision in writing. </li></ul>
  58. 58. The dismissal commission <ul><li>A separate dismissal commission is appointed for each island. </li></ul><ul><li>Task: to serve the Director of the Directorate of Labour Affairs with recommendation </li></ul><ul><li>Composition: the commission consists of at least two employer representatives, two employee representatives as well as their substitutes and an impartial chairperson </li></ul>
  59. 59. Collective dismissal (art. 5) <ul><li>If the employer intends to terminate within a period of 3 months 25 employees, or more than 25% of his employees, with a minimum of 5 employees; </li></ul><ul><ul><li>Employer must communicate at least 2 months before the termination to the director of the Directorate of Labour Affairs </li></ul></ul><ul><ul><li>Employer must s ubmit a redundancy plan within 8 days of notification </li></ul></ul>
  60. 60. Redundancy plan <ul><li>Must contain at least the following elements: </li></ul><ul><ul><li>the number of employees the employer intends to dismiss, with a specification of function, age, sex and seniority; </li></ul></ul><ul><ul><li>the date of the intended termination of the labour agreements; </li></ul></ul><ul><ul><li>the result of the consultation with the labour union if the employees are represented by a trade union; </li></ul></ul><ul><ul><li>the measures the employer has taken to alleviate the consequences of the dismissal for the employees involved . </li></ul></ul>
  61. 61. Severance Ordinance
  62. 62. Severance Pay (art. 1) <ul><li>A one-time payment in cash which the employer must pay to his employee when the working relationship with the employee terminates; </li></ul><ul><li>Calculated on the basis of number of years of service; </li></ul><ul><li>This right originates after the first full year of service of the employee. </li></ul><ul><li>It doesn’t matter if the employee is in permanent service, or works on the basis of a temporary contract </li></ul><ul><li>The employee must claim his severance pay from the employer within one year ( art. 5 paragraph 1) </li></ul>
  63. 63. Who is entitled to a severance payment (art. 3) <ul><li>An employee who is in service of an employer longer than 1 year and whose service terminates: </li></ul><ul><ul><li>Other than through his own fault, or </li></ul></ul><ul><ul><ul><li>example: Because of business-economic reasons </li></ul></ul></ul><ul><ul><li>by circumstances which are not attributed to him : </li></ul></ul><ul><ul><ul><li>example 1: if the employee wants to quit his job because of a urgent reason as result of the action of the employer; </li></ul></ul></ul><ul><ul><ul><li>Example 2: employee decide to quit because of advance age </li></ul></ul></ul>
  64. 64. Scope (art. 1) <ul><li>Severance Ordinance does not apply to: </li></ul><ul><ul><li>civil servants or employees working in the public sector </li></ul></ul><ul><ul><li>teachers in subsidized denominational education </li></ul></ul>
  65. 65. No right to severance pay <ul><li>Employee is dismissed “on the spot” </li></ul><ul><li>Employee resigns </li></ul><ul><ul><li>exceptions in jurisdiction: </li></ul></ul><ul><ul><ul><li>because of advance age and many years of service; </li></ul></ul></ul><ul><ul><ul><li>because of disturbed work relationship due to the employer </li></ul></ul></ul><ul><li>Employee passes away </li></ul><ul><ul><ul><li>When the employee already had a severance claim on the employer, at the moment of his passing away, his next of kin can claim the right to this payment </li></ul></ul></ul>
  66. 66. Amount of the severance pay (I) (art. 3 paragraph 1) <ul><li>Depends on duration of the service </li></ul><ul><li>Calculated on the basis of the last earned wage </li></ul><ul><li>For calculation of the years in service a period of more than 6 months is considered as a full year of service, after the first year of service </li></ul>
  67. 67. Amount of the severance pay (II) (art. 3 paragraph 1) <ul><li>For the first till the tenth full years in service: one week’s wage per year in service; </li></ul><ul><li>For the eleventh till the twentieth full years in service: one and a quart times the week’s wages per year in service; </li></ul><ul><li>For the next full years following: twice the week’s wages per year in service. </li></ul>
  68. 68. Severance and company pension (art. 3) <ul><li>Employee preserves right to severance: </li></ul><ul><ul><li>If the company pension is less than AOV-benefit (naf. 800,-); </li></ul></ul><ul><ul><li>If the company pension, in case the AOV-benefit is entirely or partially deducted from this, amounts to less than twice AOV-benefit </li></ul></ul>
  69. 69. Bankruptcy of the employer (art. 4) <ul><li>Social Security Bank pays severance : </li></ul><ul><ul><li>In case of bankruptcy of the employer </li></ul></ul><ul><ul><li>in case suspension of payment has been granted to employer; </li></ul></ul><ul><li>Social Security Bank can decide also to pay: </li></ul><ul><ul><li>if employer is in a position where he has stopped paying , while he: </li></ul></ul><ul><ul><ul><li>has not yet been certified in state of bankruptcy </li></ul></ul></ul><ul><ul><ul><li>has not been granted suspension of payment </li></ul></ul></ul>
  70. 70. Bankruptcy of the employer <ul><li>Request for severance pay ( claim on the severance fund) must be submitted within 1 year after the suspension of the service at the Social Security Bank (art. 5 paragraph 1) </li></ul>

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