Termination of employment agreements -Guide to doing business

Termination of employment agreements

The Dismissal Act (Ontslagwet) determines that it is forbidden for an employer to terminate an employment agreement without a dismissal permit from- or on behalf of- the Minister of Labour. The Dismissal Board (Ontslagcommissie) will assess on behalf of the Minister of Labour whether the requirements for rightful dismissal are fulfilled or not and the Head of Labour (Hoofd van de Arbeidsinspectie) will assess on behalf of the Minister of Labour whether there is an objection against (the reason for) a dismissal for urgent cause.

In Suriname executives and higher function staff members do not engage in membership of Unions. When permission is granted by the Dismissal Board, the employer can terminate the employment agreement with due observance of the notice period provided in article 1615i-591 of the Suriname Civil Code (Burgerlijk Wetboek) and further conditions set by the Dismissal Board.

A dismissal permit from the Dismissal Board is however not required in the following cases:

when it concerns civil servantswho are mentioned in article 1 of the Personnel Act (Personeelswet), since their dismissal is subject to the provisions stipulated in the Personnel Act;
when the agreement is terminated by mutual consent. Termination by mutual consent is possible at any time, in which event the employer and the employee freely negotiate the terms and conditions for the termination of the employment agreement;
in case of immediate dismissal. Immediate dismissal is only allowed if there is an urgent reason, justifying an immediate termination of the employment agreement. Such urgent reason and the immediate termination would have to be communicated to the employee ‘forthwith’ and mandatorily reported to the Ministry of Labour/Head of Labour Inspection Department within 4 days for ultimate approval by or on behalf of the Minister of Labour;
in case of termination during the trial period. During a trial period both parties have the right to terminate the employment agreement with immediate effect;
when the fixed term of the employment agreement that was agreed upon has come to an end; and
in case of (early) retirement or death of the employee.