mejiburg.com (18.03.2020)

The current reduced working hours scheme (werktijdverkortingsregeling; WTV) has been withdrawn with immediate effect and will be temporarily succeeded in the very short term by the new temporary emergency bridging measure to retain jobs (Tijdelijke noodmaatregel overbrugging voor werkbehoud; NOW). The temporary emergency measure – which is no longer linked to unemployment benefit and thus means that employees will not have to use up their entitlement to unemployment benefit – will make it possible to financially compensate more employers and, moreover, to do so more quickly than was possible under the withdrawn reduced working hours scheme. Under the NOW, employers who expect a loss in turnover of at least 20% can in relation to that expected loss apply to the Dutch Employee Insurance Agency (Uitvoeringsinstituut Werknemersverzekeringen; UWV) for compensation of the payroll costs up to a maximum of 90% of the payroll. Based on the application, the UWV will make an advance payment of 80% of the compensation. Employers will continue to pay 100% of the salary of the relevant employees. The temporary emergency measure applies, subject to conditions, to both permanent employees and employees with a flexible employment contract. The period can be extended by another three months, but this is likewise subject to conditions. WTV applications that have already been filed but not yet been dealt with will be regarded as filed applications for the purposes of the new measure. Businesses can apply for the compensation for a drop in turnover from March 1. The actual loss in turnover will be determined later on. An auditor’s report is required for applications for large amounts of compensation.