New policy SVb Aruba: a director of a legal entity has no ZV/OV rights

Written by Matthew Verhage
Posted on 9 Dec 2021 - 2 minutes read

It was recently announced based on new policy of the SVb (see attachment) that a Director-Major Shareholder (in Dutch: DGA), being the statutory director of a legal entity, is not considered an employee within the meaning of the National Ordinances on Sickness and Accident Insurance and the Cessantia Ordinance (the employee insurances), because of the lack of a relationship of authority.

This adjusted policy will take effect on 1 January 2022, which means that these directors will no longer have ZV, OV and Cessantia rights. This means that no sick pay will be paid to the person concerned for the duration of his/her incapacity for work. And since the person concerned cannot make a claim under these insurance policies, the person concerned does not owe any ZV/OV premiums for these insurances on his/her salary.

The reason for this decision is that the legal relationship and working relationship between a director and the legal person is not regarded as an employment contract and, as such, the director also does not fall under the definition of employee within the meaning of the National Ordinance on Accident Insurance and the National Ordinance on Sickness Insurance.

In view of this policy adjustment, the SVb draws the attention of employers to the fact that if it turns out that a DGA on your payroll is registered with the SVb as an insured employee under the employee insurances, he/she will automatically be removed from the SVb’s records with effect from 1 January 2022. In that case, such cases no longer need to be reported to the SVb at the start and termination of employment.

Attachment (in Dutch): SVb Aruba – DGA_2021-2022

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