Severance pay (Cessantia)

1. Object

The Cessantia Act details the rules concerning an obligatory one time payment to the employee, in case of a dismissal through no fault of his/her own.

2. Who is it meant for?

For all employees, with the exception of persons employed by a public body and employees or teachers employed in government subsidized denominational education.

3. When is the Cessantia payable?

When the employment of an employee ends other than through his/her own fault or as a result of a circumstance under the employees control.

4. The amount of severance pay

The amount of severance pay is calculated as follows:

a) for the first and up to and including the tenth full year of service, one weeks wages for each year of service;
b) for the eleventh and up to and including the twentieth full year of service, one and a quarter weeks wages for each year of service;
c) for the subsequent years of service, two weeks wages for each year of service.

A period of more than six months after the first year of service shall count as a full year of service.

5. Who pays the severance pay?

The severance pay is paid by the employer. If no severance pay is able to be paid by the employer, due to bankruptcy or a suspension of payment ordered by the court, the severance pay will be paid by the SVB.

6. The application for severance pay

The application for severance pay must be filed with the employer or at the SVB, within twelve months after the termination of employment

7. Appeal

By virtue of the Administrative Justice Act, you have the following possibilities if you are in disagreement with this decision. You can submit a letter of objection to the Director of the Social Insurance Bank, Pater Eeuwensweg 9, Curaçao within six weeks after the date that this decision has been issued, or in cases where it can be proven that this decision was received on a later date within the six weeks of said date. In your letter of objection clear mention must be made of the reasons of your disagreement and also of the decision which, according to you, the Social insurance Bank should take. Be sure to date your letter and please state your identification number. Please put on the envelope “letter of objection” and be sure to sign your letter.

You can also file a written appeal with the clerk of the Court. This appeal must be submitted within six weeks after the date that this decision has been issued, or in cases where it can be proven that this decision was received on a later date, within the six weeks of said date. In your appeal – that has to be submitted in duplicate- clear mention must be made of the reasons of your disagreement and also of the decision which, according to you, the Social Insurance Bank should take. As a matter of principle, a court fee will be charged when submitting an appeal to the clerk of the Court.

8. Obligatory contribution by the employer

The employer is obligated to pay to the SVB a contribution of ANG 40,- per year per employee. This contribution must be paid no later than the month of June of each calendar year.