RvA: 12.5% wage cut is lawful

WILLEMSTAD - Under the current circumstances in which the country of Curaçao finds itself - partly in view of the interests of society as a whole - the Advisory Council (RvA) does consider it lawful for the government of Curaçao to comply with the condition of the Netherlands to implement a 12.5 percent cut on fringe benefits for civil servants with retroactive effect from 1 July 2020.

This is stated in the advice of the RvA to Minister Armin Konket of Administration, Planning and Government Services (BPD). The advice dates from 11 August 2020. The Council acknowledges that the measure is 'a measure that is burdensome for the person concerned' and indicates that the question must be asked whether the implementation thereof - and certainly with retroactive effect - involves an exceptional case. According to the RvA, both the interests of individual citizens and the interests of society as a whole play a role in this. And these interests must be carefully weighed against each other. For the formal employer - in this case the government - there is therefore a question of consideration that must be answered.

The government had already answered this question in a letter to the civil servants' unions. It was then indicated that the government had to weigh up the further completion of the procedure with the unions, with the result that the Netherlands' condition for liquidity support cannot be guaranteed and thus the payment of salaries of government employees would be in jeopardy. Or meet the condition so as to be able to pay salaries; provide financial support to vulnerable groups in our society; limit the rise in unemployment; and promote economic recovery.

In its advice, the RvA is of the opinion that there is "no doubt" as to whether this is indeed an exceptional case. That is why the council considers it "not unlawful" if the government decides to implement the condition for cutting in the employment conditions package of civil servants by 12.5 percent.

The RvA also considers it important that the arrangement is established as soon as possible. After all, the council writes in its advice: “Although the parties involved are now aware of the government's position and can expect that their total package of employment conditions will be reduced by 12.5 percent, the principle of legal certainty requires that the actions of the government is foreseeable for those involved, so that they can adapt to this. Clarity and reliability about their legal position are important to them. After all, they need to know where they stand legally as soon as possible.”




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