Emergency Bridging Measure for Retention of Work
Written by:
Hein Kernkamp
Temporary Emergency Bridging Measure for Work Retention (NOW)
On March 17, 2020, the Netherlands government announced a series of new exceptional economic measures in the context of coping with the consequences of the corona crisis for business. One of those measures is that it is no longer possible to apply for a reduction in working hours. The scheme was immediately withdrawn and replaced by the Temporary Emergency Bridging Measure for Retention of Work.
What are the conditions of the NOW scheme?
The scheme has not yet been published. Information from the Ministry of Social Affairs and Employment shows the following conditions:
- With the application, the employer commits in advance to the obligation not to apply for dismissal on grounds of economic reasons for his employees during the period for which the allowance is received.
The applicant expects at least a 20% loss of turnover. - The application is valid for a period of 3 months, which can be extended once by another 3 months (further conditions may be imposed on the extension).
- The scheme targets turnover decreases from 1 March 2020.
- The amount of the compensation for wage costs depends on the drop in turnover, a maximum of 90% of the wage bill.
Here are some examples:
- if 100% of the turnover is lost, the allowance amounts to 90% of the salary costs for an employer;
- if 50% of the turnover is lost, the allowance amounts to 45% of the salary costs for an employer;
- if 25% of the turnover is lost, the allowance amounts to 22.5% of the salary costs for an employer.
Based on the application, UWV will provide an advance of 80% of the expected contribution. It is subsequently determined what the actual decline in turnover has been. An accountant's report will be required for applications above a further amount to be determined.
When can I submit a NOW application?
That is not known yet. Loss of turnover from 1 March 2020 is eligible for compensation.
Where do I submit a NOW application?
The application for an allowance under the Temporary Emergency Bridging Measure for Retention of Work must be submitted to the UWV.
How long does NOW apply?
The NOW provides for a 3-month allowance to be applied for, with the possibility of extending for a further 3 months (possibly under other conditions).
The implementation
This Temporary Emergency Measure Bridging for Work Retention (NOW) will be opened as soon as possible and will replace the current working time reduction scheme. With immediate effect, no new applications can be submitted for this to SZW. Applications that have already been made, but not yet settled, will be handled in the new scheme. Entrepreneurs can apply for the allowance for a decrease in turnover from 1 March 2020.
Continuation
This article will be updated when more about the scheme is known. In the meantime, you can of course contact us by email or telephone for any questions you may have. It is not without reason that our motto is: "Your problem, our concern."
More information?
Hein Kernkamp will gladly help you further.
