News alert: package of new government measures due to corona virus
Yesterday, the government decided today to take exceptional economic measures because of the corona virus. The aim is to protect our health, our jobs and incomes and to reduce the consequences for self-employed contractors, SME’s and large companies. The measures ensure that companies can continue to pay their employees, offer self-employed contractors a bridging period and enable money to remain in the companies through eased tax regimes, compensation and extra credit opportunities.
I. Overview of all measures
Please click on the link for our in-house translation of the measures, as published on the website of the Dutch government on 17 March 2020:
II. Employment Bridging Emergency Fund (NOW)
Below you will find more information about the NOW-scheme, which replaces the worktime reduction-scheme.
What is the NOW-scheme?
You can apply to the Employment Bridging Emergency Fund (NOW) for a substantial compensation for their wages. In this way, you can continue to pay employees with permanent and temporary contracts. The Employee Insurance Agency (UWV) will pay you an advance.
You can claim the compensation for 3 months, with the possibility to extend it for a further 3 months. You can claim the compensation for turnover you have missed from 1 March 2020 onwards.
Conditions if you want to claim NOW
- If you claim NOW, you will not be allowed to request permission to dismiss employees on economic grounds during the period for which you receive compensation.
- You expect to lose at least 20% turnover.
- You claim compensation for 3 months, with the possibility to extend it once, for a further 3 months (extra conditions may apply to an extension application).
- The Employment Bridging Emergency Fund is compensation for turnover you have missed from 1 March 2020 onwards.
- You will need to submit a statement from an accountant for claims that exceed a certain amount (the height of which is yet to be established).
How much compensation for wages can you claim?
The compensation for wages you can claim depends on the turnover loss. You can claim a maximum of 90% of the wages. For example:
- If the turnover loss is 100%, the compensation will amount to 90% of wages;
- If the turnover loss is 50%, the compensation will amount to 45% of wages;
- If the turnover loss is 25%, the compensation will amount to 22.5% of wages.
Based on your application, the Employee Insurance Agency (UWV) will pay you an advance of 80% of the expected compensation. The actual turnover loss will be determined afterwards. When determining the definitive compensation, a correction can be made, if there has been a decrease in wages.
How do you apply?
This has not yet been announced, we will keep you updated.
Can you still apply for the work time reduction scheme?
No, that is no longer possible. If you have already applied for work time reduction scheme, you will be notified. The Employee Insurance Agency (UWV) will treat your application as a claim for the new measure, the NOW compensation.
III. Follow up – more information
We will keep you updated of any new developments, including the publication of the underlying legislation of the new measures.