Flexibility package for Covid-19 crisis

ORANJESTAD – The Government has introduced a flexibility package for 3 months to provide relief for all the economic turmoil caused by the Coronavirus. 

 

This package is effective April 1, 2020, and is mainly to provide aid to both businesses and employees so they can overcome these critical moments.  

The Government’s position is that everybody without exception will have to bear the consequences of this crisis as a community. The Government of Aruba provides the opportunity for businesses and employees to apply for compensation from the Emergency Social Assistance Funds FASE to help cover the loss of income of employees due to the reduction of working hours, causing them to earn less than AWG. 950, 00 monthly.

Any employer that wishes to qualify for any of the new measures of the Government including the FASE relief program to assist their employees should be aware that they have the responsibility of providing the maximum security to their employees.

To qualify for any of the new measures including the FASE package, the Government has included a set of requirements for employers:

  • The employer pays the March 2020 payroll as usual.
  • Employers should present a detailed plan on how they are going to tackle the financial consequences caused by the Coronavirus crisis, keeping the workers' interest in mind.
  • Employers, according to their financial strength, need to prove their willingness to be flexible with the working hours of their employees partially before abruptly reducing working hours completely.
  • Failing to meet these requirements will disqualify employers from the relief being offered by the Government and the employees retain all the rights to claim their income with their employer.
  • Employers that meet the requirements will be considered for the flexibility package :

Labor Law:

  • Flexibility with the working hours based on the individual needs proven by every company. Employees retain the right to receive payment for the hours they have worked, this in mutual agreement between employer and employee. The Government urges companies to maintain working agreements active; it is recommended to grant paid vacation before going over to reduce working hours while still keeping five vacation days as a buffer. Noncompliance with any of the above-mentioned conditions and failing to prove financial reasons to terminate working agreements will result in the layoff permit submitted to the DAO, not being granted.
  • The stimulus package is valid from April 1, 2020, up to June 30, 2020.

Note: The deadline for submission of the application for social assistance for June 2020 is June 1, 2020.

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