Corona virus: the position of the employer (4) – Emergency Fund Bridging Employment (NOW)

18/03 2020

Hereby update nr 4 of our Q&A Coronavirus.

Emergency Fund Bridging Employment (NOW)

Last night at 18:45h the Dutch Government withdrew the working hours reduction regulation and replaced it with the Emergency Fund Bridging Employment (NOW).

We briefly set out the relevant information for you:

  • NOW is also applicable to temporary workers and on-call workers (0-hour contracts)
  • Employers should expect at least 20% loss of turnover as of March 1st 2020
  • Employers can request for a compensation (we believe: with retroactive effect as of March 1st 2020) of maximum 90% of their wage costs, depending on the reduction of turnover. Examples given:
    • 100% reduction of turnover -> 90% compensation of wage costs
    • 50% reduction of turnover -> 45% compensation of wage costs
    • 25% reduction of turnover -> 22,5% compensation of wage costs
  • Employer can request an 80% advance of the expected compensation from the UWV [e.g.: with 50% reduction of turnover, 80% advance of 45% compensation of wage costs]. Afterwards, it will be determined what the actual reduction of turnover has been. For large (we do not know yet if they mean: large number of employees and/or large % reduction of turnover) requests an auditor’s opinion will be required.
  • Compensation will initially be granted for 3 months, which can be extended with 3 months
  • The employer must commit itself in advance that no dismissal permit will be requested based on economic grounds will be submitted for the employees during the period that the employer receives the compensation
  • All applications for reduction of working hours still pending will automatically be considered an application under the NOW