Employer of Record Services in Aruba
Find, Hire & Pay in Aruba
Employer of Record (EOR) services in Aruba enable businesses to hire employees, manage payroll, and ensure compliance with local labor laws without the need to establish a legal entity. By partnering with an EOR provider, companies can streamline operations, reduce costs, and focus on expanding their business in the Caribbean region.
Why Use Employer of Record Services in Aruba?
- Simplified Market Entry
- Quickly hire employees without setting up a local entity.
- Compliance Assurance
- Adherence to Aruba’s labor laws and tax regulations.
- Cost-Effective Expansion
- Avoid the financial and administrative burdens of incorporation.
- Expert Support
- Local expertise ensures smooth employee management and compliance.
- Focus on Core Business
- Delegate HR and payroll tasks to the EOR provider.
- Risk Mitigation
- Minimize exposure to legal and compliance risks.
How EOR Services Work in Aruba
- Employee Hiring
- The EOR provider legally hires employees on behalf of your company.
- Payroll Processing
- Salaries, taxes, and social security contributions are managed efficiently.
- Compliance Management
- The EOR ensures all employment contracts and benefits comply with local laws.
- Employee Benefits Administration
- Mandatory and additional benefits are managed by the EOR.
- Termination Assistance
- EOR services handle terminations following Aruba’s labor laws.
How EOR Services Work in Aruba
- Employee Hiring
- The EOR provider legally hires employees on behalf of your company.
- Payroll Processing
- Salaries, taxes, and social security contributions are managed efficiently.
- Compliance Management
- The EOR ensures all employment contracts and benefits comply with local laws.
- Employee Benefits Administration
- Mandatory and additional benefits are managed by the EOR.
- Termination Assistance
- EOR services handle terminations following Aruba’s labor laws.
Employment Contracts in Aruba
- Types of Contracts
- Fixed-term, indefinite, and probationary contracts.
- Requirements
- Contracts must be in writing and include job details, salary, working hours, and benefits.
- Adherence to Aruba’s Civil Code is mandatory.
Working Hours in Aruba
- Standard workweek: 40 hours.
- Maximum working hours: 8 hours per day and 45 hours per week.
- Overtime:
- Allowed with compensation.
- Pay rate is typically 150-200% of the regular hourly wage.
Employee Leave in Aruba
- Annual Leave
- Minimum of 15 paid vacation days annually.
- Additional leave may be negotiated in contracts.
- Sick Leave
- Employees are entitled to paid sick leave for up to 2 years, covered by Aruba’s Social Insurance Bank.
- Maternity Leave
- 12 weeks of paid leave.
- Public Holidays
- Employees are entitled to 10 public holidays annually.
Employee Benefits in Aruba
- Mandatory Benefits
- Social security, including healthcare, pensions, and work injury insurance.
- Optional Benefits
- Bonuses, transportation allowances, and supplemental health insurance.
- Severance Pay
- Required for unjustified terminations.
Advantages of Using Global EOR Services in Aruba
- Quick Hiring Process
- Onboard employees in compliance with local laws without delays.
- Local Expertise
- EOR providers have in-depth knowledge of Aruba’s labor and tax systems.
- Cost Efficiency
- Save on operational costs associated with setting up a legal entity.
- Risk Reduction
- Stay compliant and avoid penalties related to labor and tax laws.
- Flexibility
- Scale your workforce up or down with ease.
Additional Information
- Taxation in Aruba
- Corporate income tax: 25%.
- VAT: 3% on goods and services.
- Immigration Requirements
- Work permits are required for foreign employees. EOR providers assist with the process.
- Cultural Insights
- Understanding Aruba’s work culture is vital for successful operations.