Friday, October 25, 2019

Policy change right to payment ZV/OV and Cessantia

Introduction

The Social Security Bank (hereinafter ‘SVB’) recently sent letters to managers and statutory directors which, together with a further clarification, indicate that the SVB has changed its policy concerning the work relationship between an entity and its manager or statutory director regarding premiums for sickness insurance, accident insurance (hereinafter ZV/OV) and cessantia as of 1 September 2019.


What does the policy change mean?

The policy change entails that managers and statutory directors of entities who do not have a relationship of authority with the employer, do not qualify as ‘employee’ and will therefore no longer be insured under the National Ordinance Sickness Insurance, National Ordinance Accident Insurance and the Cessantia National Ordinance as of 1 September 2019. The SVB does not give a definition of what constitutes a relationship of authority. In any case, not being able to be fired against one’s will, will be considered to be a lack of relationship of authority. An example of this is a manager or statutory director who is also a shareholder with an interest of 51% or more in the same entity.

What consequences will the policy change have for you?

For the manager or statutory director for whom there is a lack of relationship of authority, the consequences will be as follows:

  • as of 1 September 2019 premiums ZV/OV and cessantia no longer have to be paid
  • in case of illness or sickness, there is no entitlement to payment of sickness benefits by the SVB
  • in case of an accident on the job, there is no entitlement to payment of accident benefits by the SVB; and
  • the manager or statutory director is not entitled to receive severance benefits (cessantia) from the SVB in case of dismissal.

If you wish to remain insured for accidents on the job or loss of earnings in case of illness or disability, we advise you to take out a private insurance or disability insurance policy.

 For more information please contact:

Anjli Finessi, Tax Advisor, finessi@bakertillycuracao.com

Wilco van Oosten, Tax Advisor, vanoosten@bakertillycuracao.com

Arthur van Aalst, Tax Attorney, vanaalst@bakertillycuracao.com

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