PHILIPSBURG:--- The Ministry of Public Health, Social Development and Labor (VSA) reminds all business owners and employers across Sint Maarten that when it comes to closing a business or dismissing of employees, fair and lawful processes must always be observed, especially in today’s evolving economic environment.
Minister of VSA, Hon. Richinel Brug, stated, “We understand that business decisions such as restructuring, downsizing, or full closure, are sometimes unavoidable. However, those decisions must respect the rights of all workers, both permanent and temporary.
Clarifying the Legal Process
While not every business closure requires formal notification to the Ministry, certain conditions, particularly those involving mass dismissals, do. In such cases, employers must notify and seek permission from the Secretary General of the Ministry of VSA, in accordance with the Dismissal Ordinance and established guidelines.
However, when terminations are settled mutually between the employer and employees, honoring legal entitlements, formal notification is not legally required. Still, both parties are encouraged to consult the Division of Labor Affairs for guidance, to avoid disputes or misunderstandings. Parties are also encouraged to establish such agreements in writing to prevent possible future claims by either party.
Key Considerations for Employers
Regardless of the type of employment contract, all employees have rights that must be respected during termination, including but not limited to:
- Payout of unused accrued vacation days, in accordance with the established legal requirements.
- Compensation equivalent to the salary over the legally established notice period, in case of e.g. premature termination without observing the aforementioned notice period.
- Possible compensation for years of service (also known as severance/ cessantia), when the termination is due to no fault of the employee
Employers are also encouraged to explore mutual termination agreements, which can be beneficial for both parties when handled transparently and respectfully.
Support for Employers and Workers
The Ministry, through the Division of Labor Affairs, offers free support to both employers and employees navigating termination or closure scenarios. Whether it’s legal clarification, best practices for termination, or help transitioning workers into new roles, the Ministry remains a resource for the community.
Minister Brug added, “Even when legal requirements are unclear, it is wise to seek advice. A single misstep can have long-lasting effects on both employers and workers. We are here to help ensure those steps are taken correctly and fairly.”
Moving Forward Together
In closing, Minister Brug calls on all businesses to act with integrity and care. “Our workforce is the foundation of our economy. By treating every employee with fairness and dignity, we ensure a stronger, more resilient Sint Maarten for all.”
