VSA Minister Omar Ottley in Parliament on Monday.
PHILIPSBURG--Efforts are currently underway to stem the abuse of short-term labour contracts and flexiblise the country’s dismissal law.
Minister of Public Health, Social Development and Labor VSA Omar Ottley gave an insight into the ministry’s plans and measures during a parliamentary meeting on Monday.
Ottley told Members of Parliament (MPs) that a work group comprising representatives of the Ministries of VSA and Tourism, Economic Affairs, Transport and Telecommunication (TEATT), employers and unions, are working on addressing the abuse of short-term contracts.
“We are continuing to work to curb this abuse. I am very happy for the amendments that were done to the civil code as it pertains to the short-term [labour contracts – Ed.], but we are looking into the possibility of eliminating the short-term contract once and for all and [instead – Ed.] have a trial period or by reducing the number of short-term labour agreements from 19 to 10 per cent. That is the goal. We are in a work group,” Ottley told MPs.
He said the Civil Code New Title 10 Book 7 has been published and a date will be determined when it will go into effect.
The legislation includes an extension of maternity and introduction of paternity leave; the issuing of electronic pay slips; addresses the issue of transfer of enterprises; adjustment to short-term contracts; having a shorter time span before someone will become permanently employed – 24 months instead of 36 months; and the issuing of fewer consecutive contracts – from three to two.
“This is a steppingstone,” Ottley said. “I have always stated that my philosophy is: regardless of who was before me, who brought it before me, if it benefits St. Maarten, we will push forward with it.”
He said meetings are being held with other ministries and stakeholders to discuss the impact this legislation will have on other legislation, regulations and policies, and once this process is completed a date will be determined for the Civil Code New Title Book 7 to go into effect.
Incidental labour permits
The issuing of incidental labour permits, Ottley said, is something near and dear to him since the passing of a motion to this effect in Parliament.
The issuing of incidental permits is for large construction projects. This is to facilitate a quicker turnaround period to grant employment permits for the large projects, with an agreement for job fairs, financial support for training at local recognised institutions which will provide certification programmes for job-seekers in the local labour market. The use of local heavy equipment and machinery is also promoted.
“This is an example of what was done with the Indigo project. It was very, very good. We were happy to see such a big project underway, but not selling out our country because this project will only benefit our country,” Ottley said, adding that job fairs will be held during the construction, finishing and operational phases of the projects.
Stemming abuse of director’s licence
An Interdepartmental Collaboration Protocol was signed between the Division of Labor Affairs and Social Services and the Department of Economic Licenses in 2020 to curtail the abuse of director’s licences and ensure compliance with business registrations.
Ministry official Peggy-Ann Dros explained that once a business is established in the country and it has a director, once a director’s licence is provided the individual can go to the Ministry of Justice and apply for a residence permit, which permits the individual to work in the country. Dros said this is being highlighted to show the importance of the collaboration of the VSA, TEATT and Justice Ministries to curb the abuse.
“It is not just a VSA problem. So, if the Ministry of Justice gives out all of these residence permits that are tied to director’s licences, those people do not need to come to VSA to request an employment permit and then, by default, it strips the National Service Center from having any insight in terms of who is working actually as a waitress, who is working as a hostess and who is just coming in to just get the permit and not really doing anything,” she said.
In the meantime, Ottley indicated that one of the country measures being worked on is the execution of an analysis of the current labour market. It provides attention to specific areas such as those that affect shorter working hours, part-time employment, underemployment, short-term contract, flexibility of the dismissal laws, level of minimum wage, barriers in employing foreign labour, illegal employment, and youth underemployment.
“This is very important. We are in the process of carrying our such research and … we are also carrying out some of these aspects already when it comes to minimum wage, flexibilisation of the dismissal law – all of this is being carried out right now as we speak.”
He explained that part of the measures will be dismissal rules, unemployment benefit, permanent education, old age pension AOV, secondary pension and cessantia (severance pay), which falls into the security net, clear communication and culture of compliance, temporary labour shortage, seasonal work short-term contracts and foreign labour, youth and entry into the labour market.
