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< I thought their contract had run-out?
That's different from being fired. >

It appears that you are correct. I cannot site where I read it but I did read that they had been "fired". The excerpt below appears to recognize that it had been reported that way ealier as it refers to "fired" and clarifies it.

Per CNN.com
ORANJESTAD, Aruba (AP) -- Two men charged in the disappearance of a U.S. teenager who went missing in Aruba more than a week ago were known to police for trolling area hotels to pick up women, and at least one had a previous brush with the law, a police officer said Tuesday.

The two suspects had lost their jobs as security guards at a hotel about two blocks from the Holiday Inn where 18-year-old Natalee Holloway was staying in the Dutch Caribbean island. They weren't fired but their work contracts had expired, a police officer told The Associated Press.

With all the conflicting reports it's difficult to know what the truth is. It will take a while to sort it out. However, my original response to your post was to indicate that not all "background checks" for scurity guards are so well done. Plenty of "bad" people out there pass background checks.