New policies for Temporary Employment Agencies as of August 1, 2019

ORANJESTAD - The Department of Labor and Research (DAO) announces the Minister of Labor’s new policy for Temporary Manpower Agencies by August 1, 2019.

This new policy requires all individuals or companies interested in applying for or extending an existing permit of a Temporary Manpower Agency, to apply for/renew that permit via the DAO. The DAO is located on the Paardenbaaistraat 11 and all necessary forms are available right here.

Together with the completed application form, the following should be submitted:

  • An extract from the Commercial Register of the Chamber of Commerce and Industry in which the main objective of the company, providing temporary manpower, not older than 3 months;
  • A copy of the business permit, ‘vestigingsvergunning’ (if applicable);
  • A copy of the license management, ‘directievergunning’ (if applicable);
  • A copy of the residence - and work permit of the director/owner of the agency (if applicable);
  • A Curriculum Vitae stating relevant qualifications to assess whether the person in question also has the necessary knowledge to manage an employment agency;
  • A statement from the Tax department for the fiscal standing of the agency, however, not older than three months;
  • A copy of the contractual agreement which will be used by the agency and its temporary workforce in accordance with Article 1615ij of the Civil Code of Aruba (BWA);
  • A copy of the contractual agreement which will be used by the agency and the third party (client)  which states the conditions under which workers will be made available to the third party (client);
  • A copy of the general conditions to which the agency adheres when making workers available to work for third parties(clients);
  • A copy of a valid ID of the director or owner of the agency (passport, driver’s license or identification card);
  • If using a proxy, a letter of authorization from the director or owner of the manpower agency and a copy of a valid identification of the representative.

Once these documents are submitted, DAO’s employee will revise and evaluate if all is completed correctly and accurately. Hereafter and upon approval of the DAO employee,  the petitioner will receive  an approval slip and must pay a fee to the amount of  Awg 250.00. This approval slip is in no way indicative of an approval. Once proof of payment is presented, the wait period of 12 weeks to be legally approved as a Temporary Manpower Agency commences.

In general terms, when comparing the new policies to the old policies, the new policies are stricter than the old policies regarding:

  • The evaluation of the application
  • The conditions are now stated on the agency’s license.

Evaluation of the application

  • The applicant’s reputation/record in relation to the DAO will be verified;
  • The DAO will verify if the petitioner’s only goal is to operate an agency providing temporal manpower services to third parties. It is no longer permitted to have a multi-operation company;
  • The professional background of the applicant will be examined. The minimum education requirement is knowledge of Human Resource Management or an equivalent training. In addition a completed a course in Aruban labor laws is required. The applicant must have a working experience of at least 3 years in the manpower industry. The new policy specifies the professional knowledge that is expected of the applicant.

The conditions attached to the Temporary Manpower Agency license are:

  • Persons with a work permit may not be recruited to provide temporary manpower services to third parties (clients). Foreign nationals who are not under the LTUV, eg. ‘firma liber’, can be recruited to provide temporary manpower services to third parties (clients);
  • The agency must have a written agreement (contract), signed by both parties that he/she has been recruited and that he/she will be in temporary service of the agency’s client;
  • The manpower agency must have a written contract with its client that they will provide them with manpower;
  • The temporary manpower agency may not be transferred without the knowledge of the minister in charge of labor. The minister in charge of labor must be notified of this intent two months in advance;
  • The Temporary Manpower Agency complies with all labor laws.

The second and third conditions are new and designed to provide transparency of the manpower agencies but especially to guarantee better protection for the worker.

After the evaluation of the application, the DAO then provides the minister in charge of labor with a recommendation. The minister in charge of labor is the one who will give his/her approval or disapproval to issue or not to issue a permit for the operation of a temporary manpower agency.  If the minister decides to approve the operation of a temporary manpower agency, then the applicant must pay the remainder Awg. 2,250.00 to receive the permit.

Finally, as an extra service, the DAO will organize mandatory information sessions for applicants that are recipients of a permit to operate a manpower agency. During these sessions all agencies will receive ample information concerning the laws governing the temporary manpower agencies, the rights and obligations in regards to all parties involved, and the monitoring of the  adherence to the laws governing the temporary manpower agencies.

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