The Netherlands introduced "NOW", a temporary new scheme to replace the current partial unemployment system, in order to allow for an easier access to short-term work benefits, and benefit a greater number of employees without impeding on their traditional unemployment rights.
In order to keep employees, employers with loss of revenue of at least 20% due to the corona crisis can receive NOW compensation of up to 90% of their payroll over a period of 3 months. Employers have to continue to pay 100% of the salary of the relevant employees. This temporary emergency measure applies to both permanent employees and employees with a flexible contract. It can be extended by another three months.
The Netherlands introduced "NOW", a temporary new scheme to replace the current partial unemployment system, in order to allow for an easier access to short-term work benefits, and benefit a greater number of employees without impeding on their traditional unemployment rights.
In order to keep employees, employers with loss of revenue of at least 20% due to the corona crisis can receive NOW compensation of up to 90% of their payroll over a period of 3 months. Employers have to continue to pay 100% of the salary of the relevant employees. This temporary emergency measure applies to both permanent employees and employees with a flexible contract. It can be extended by another three months.
Temporary Emergency Measure Bridging Employment (NOW) presented
On 31 March 2020, the temporary Emergency Measure Bridging Employment (NOW) was presented by Minister Koolmees of Social Affairs and Employment (SZW) and Fred Paling, chairman of the Executive Board of UWV.
Employers can request compensation for labor costs
Employers with loss of turnover due to the corona crisis can now apply for compensation for their wage costs via NOW. This allows them to keep their employees employed. An employer can receive NOW compensation for an expected loss of turnover of at least 20% over a period of 3 months. The amount of the allowance is 90% of the wage bill, compared to the percentage of expected loss of turnover.
Condition: no dismissal for business reasons
An employer can only receive a NOW allowance if he does not apply for dismissal for business reasons for his employees during the period for which he receives an allowance. Flex workers who are on the payroll of an employer also count.
For payroll employees and temporary agency workers, the payroll employer or temporary agency worker can apply for a NOW allowance.
UWV is working on starting the scheme from Monday 6 April. From then on, employers can submit an application.