Verkavelingsprojecten

Labor Force

Considering the number of people between the age of 15 and 64 years, the working age population was  309,150 people in 2004, of which 154,836 male and 154,179 female.  The economically active part of the population was 173,130, of whom 156,705 were employed and 16,425 persons unemployed.

The unemployment rate in 2004 was 9.5% and the participation ratio was 56%. Suriname has a relative low participation ratio because of the low participation ratio of women. The participation ratio for men is 70.8%, while that of women is 41.2%. Youth unemployment is a stressing problem. In 2004 the youth unemployment (age-group: 15-24 year) was 21.5%.

In table 2.27 the number of employed persons by occupational group is provided. The classification of occupations into major groups is based on the International Standard Classification of Occupations version 1988, ISCO-88.

Table 2.27 Number of employed persons by Occupational Group (2004)

Source: General Bureau of Statistics

In table 2.28 the number of employed persons by branch of industry is provided.

Table 2.28 Employed Persons by Branch of Industry (2004)

Source: General Bureau of Statistics

Due to its high educational level Suriname has a relative well-developed human resource. About 25% of the employed persons have at least attended senior secondary vocational and technical education. In 2.28 the employed persons by highest level of education attended is provided.

Table 2.29 Employed persons by highest level of education attended (2004)

According to figures of the General Bureau of Statistics the unemployment rate in the urban areas has decreased from 13.8% in 2001 to 8% in 2004. In table 2.30 some labor market information for the urban areas is provided.

Table 2.30 Labor market information (Paramaribo and Wanica 2000 – 2004)

Source: General Bureau of Statistics

About 1 % of the employees work part-time. The average sick leave is estimated at below 5 %.

The main laws governing labor relations are the Act Collective Bargaining Agreement of July 14, 1962 and the Act Dismissal Permit of January 27, 1983. The Act Collective Bargaining Agreement 1962 regulates the following issues; working time, vacation, trial period and industrial accident insurance. The Act Dismissal Permit 1983 regulates the termination of employment by the employer.

Labor Rates

In Suriname there are no legal regulations with respect to the wage scale. There is also no minimum wage.
The larger companies and the public administration have collective labor agreements in which wage-rates are settled. The wage rates in Suriname are relatively low compared to the level of development of the workforce. The starting-salaries vary between USD 150 for unskilled persons to
USD 700 for university graduates. The salaries vary widely from company to company.

Mediation Board

The Labor Dispute Act (1946) aims to settle labor disputes peacefully. The law provides for a mediation board, consisting of government-, employer and labor representatives, which act in an advisory capacity in labor disputes. Its conclusions are binding only when the parties concerned have previously agreed to them.

Retrenchment Rules

The termination of the working relation between employers and employees is regulated by the Dismissal Permit Act 1983. This act forbids employers to terminate a labor-agreement with an employee unilaterally. The Dismissal Permit Act distinguishes between individual and collective retrenchment.

To terminate a labor-agreement, a dismissal permit from the Minister of Labor is required. The Dismissal Board judges the applications of the employer and takes a decision on behalf of the Minister of Labor. The Board judges if the by the employer given reasons to terminate the working relation are valid and if the followed procedure is in line with the law, the collective labor agreement and labor regulations. If the Dismissal Board approves the application the employer is allowed to terminate the working relation.
The Dismissal Board must address these requirements within 30 days from receiving. As long as the dismissal permit is not adjudged the labor-agreement is still in force.
The dismissal permit is not required in the following cases:

1. The termination of the labor-agreement is bilateral (employee and employer agree on it)
2. If the employee is in his probationary period
3. If the agreed working period has passed
4. If urgent matters cause the termination

In case of a temporary labor agreement no authorization is required after the period is elapsed. The agreement should be made in writing and the conditions for the extension of the contract should be explicitly stipulated.

Rules For Foreign Workers

Residence Permit/Work Permit

Foreigners who want to work in Suriname require two kinds of permits. First a residence permit has to be obtained from the Ministry of Justice and second a work permit has to be obtained from the Ministry of Labor.

Residence Permit

Foreigners can stay up to 6 months if they have a valid visa and ticket. After 6 months, a residence permit is required. Applications for a residence permit are being made by a request to the Minister of Justice and Police. The main criterion for a residence permit is a work permit from the Ministry of Labor.
For people from the Netherlands there is a preferential treatment. They only have to prove their means of living.
The residence permit is valid for a maximum of 2 years and can be renewed.

The following documents must be included in the request:

1. Completed application-form (double)
2. Stamp of SRD. 1.50
3. 2 passport photos
4. Copy of passport
5. A police certificate of good character from the country where the individuals come from
6. Allowance money (depends on the country where the individual comes from)
7. A fee of USD. 150.-

Work Permit

Work permits are regulated by the decree Work permit 1983 and adjudged by the Department Work Permits of the Ministry of Labor. The work   permit is granted in the following cases:

1. There is no local supply;
2. Persons who acquire an enterprise must have a local counterpart;
3. The enterprise where the foreigner will work must state that they need the labor service.

The main criterion is the condition of the local supply. Some 1,500 work permits are being adjudged annually. Applications for work permits are made by the Department Work Permits of the Ministry of Labor. In the decree Work Permit preferential treatment is granted to special categories of people.

The following documents are required:

1. A completed application form;
2. An application for a residence permit;
3. Deposit slip of the levy made on the request for a work permit;
4. Passport, valid for at least six months (copy);
5. 4 passport photos of the individual for whom the working permit is required;
6. A declaration of the employer in which is stated what the work activities and the salary of the employee will be;

A copy of the business-license of the employer in cases the individual wants to establish a company.

In Suriname five types of business organization are possible:
- Sole proprietorship
- Partnerships
- Limited Liability Company
- Branch of a foreign company
- Foundations

Sole Proprietorship

Partnerships

Partnerships are created by either a notarial or a private deed. Legally, three types of partnership are possible:

1. Professional partnership; is mainly used by persons in professions such as law and accounting. The liability of the partners depends on the partner-agreement.

2. General partnership; all partners are jointly and fully liable for all obligations of the partnership.

3. Limited partnership; there is at least one general partner and one or more limited partners. The general partner(s) is (are) fully liable for all obligations of the partnerships. The limited partners are only liable to the extent of the amount invested in the partnership. A limited partnership with more than one general partner becomes a legal entity, separate and distinct from the individual partners.

The partners of general partnerships and limited partnerships are obliged to register the partnership in the Commercial Register of the Chamber of Commerce and Industry.

General Partnership

Limited Partnership

Limited Liability Company

There is only one type of a limited liability company in Suriname that is used for both closely held companies and public companies.

A limited liability company is formed by at least two persons (incorporates) by notarial deed. The company’s charter must include the name, domicile and the objects of the company. The deed of incorporation must also state the amount of authorized capital, the number and par value of the shares, as well as the number of shares subscribed by each of the incorporates. At least 20% of the company’s authorized capital must be subscribed on incorporation. At least 10% of the par value of each subscribed share must be paid up.

The company does not commence its existence until the President of Suriname has issued a certificate of no objection on the deed of incorporation. The company must be registered in the Commercial Register of the Chamber of Commerce and Industry. Before the registration in the Commerce Register the managing directors are liable against third parties for acts binding on the company.

Branch of a foreign company

Trade Register

All businesses in Suriname, with the exception of government and agrarian enterprises that are not limited liability companies, associations or foundations that belong to minors, are mandatory to register at the Trade Register. The goal of the Trade Register is actively promoting the registration of all economic activity.

Registration takes place at the Chamber of Commerce and Industry, and must be done one-week prior or one week after the actual commencement of the activities.

In order to register the business into the Trade Register, the following documents need to be submitted:

• • The decree/license (if obligatory)
  • One recent passport photo
  • Family book, passport or excerpt from the Birth Register

Specific approval for foreign investors

For the import of capital, a license of the Foreign Exchange Commission is required in order to be able to re-export this capital in the future.

For the following foreign currency transfers a permit from the Foreign Exchange Commission is required:
- Foreign transfer of interest and profit
- Import of foreign currency in the form of loans or risk-bearing capital
- Incidental proceeds obtained from the sale of business goods to residents, or from the liquidation of concerns.

A request to the Foreign Exchange Commission for the transfer of profit must be accompanied by an accountant’s report.

When do you need a licence

For some categories of businesses a business-license is required. These are granted by the Ministry of Trade and Industry. The general requirement for the license is professional knowledge of the sector and creditworthiness. A license is granted for a specific location, a specific business or a specific profession, for a period of three years.
For import and export activities there are no licenses required.

Applications for licenses must be submitted to the Ministry of Trade and Industry. For local businesses like shops and warungs (small javanese restaurant), the license must be submitted at the Commissioner’s office in the district where the business will be located.
The following documents are to be included in the request for a business license:
- 3 passport photo’s
- A declaration of the tax office (no tax arrears or a settlement agreement)
- One excerpt from the Birth Register
- One nationality declaration
- One certificate of credibility (bank guarantee) if it concerns a license for:
a factory, a travel agency, a tour-operator, a commission agent, a grocery
- A copy of the mortgage deed or a letter of approval from the owner of the building
- If it concerns a limited liability company (in establishment):
a copy of the articles of association, one excerpt from the Trade Register of the limited liability company and a notification that the annual fee / contribution of the Chamber of Commerce and Industry has been paid.

Application for business licence

Applications for licenses must be submitted to the Ministry of Trade and Industry. For local businesses like shops and warungs (Javanese eating-place), the license must be submitted at the Commissioner’s office in the district where the business will be located.

The following documents are to be included in the request for a business license:

* 3 passport photo’s

* A declaration of the tax office (no tax arrears or a settlement agreement)

* One excerpt from the Birth Register

* One nationality declaration

* One certificate of credibility (bank guarantee) if it concerns a license for:
a factory, a travel agency, a tour-operator, a commission agent, a grocery

* A copy of the mortgage deed or a letter of approval from the owner of the building

* If it concerns a limited liability company (in establishment):
a copy of the articles of association, one excerpt from the Trade Register of the limited liability company and a notification that the annual fee / contribution of the Chamber of Commerce and Industry has been paid.

Passports should be valid at least six months from the date of entry. Visitors from most countries other than the Caribbean Community need visas. Apply for a two-month, multiple-entry-traveler visa, which costs as much as the usual two months, valid tourist visa. Costs vary as per country of residence. A visa can be provided at the airport if organised in advance by a local tour operator or contact. Alternatively it may be obtained from a Suriname diplomatic mission.

The Police administered Department for foreigners is located in the building of the Ministry of Public Works on the corner of the Mr. J. Lachmon street and the Dr. Ir. H.S. Adhin street. This office can be reached by telephone: 532109. A vaccination certificate against yellow fever and cholera is only required when you arrive from an infected area.

Time-Zone

Suriname time is two hours later than Eastern Standard Time (EST) in the USA and three hours earlier than Greenwich Mean Time (GMT) in Europe.

Business Hours

Table 2.20 Business hours

In table 2.21 the official holidays are provided. For these days the employer is required to give the day off with pay.

Table 2.21 Official Holidays

* Exact dates are annually determined according to data-accounting procedures prescribed by respective religions.