The Dutch Government has announced new measures to support Dutch employers to cope with the consequences of the Coronavirus (Covid-19).
The short-time working scheme (Werktijdverkorting/WTV) is withdrawn. Employers with a loss of turnover due to the coronavirus can apply for the temporary Employment Bridging Emergency Fund (NOW) instead of a WTV permit. The employer will receive a substantial allowance with which the employer can continue to pay its employees.
The employer needs to consider the following:
- You are entitled to the allowance if you expect to lose at least 20% turnover.
- The compensation for wages you can claim depends on the turnover loss. You can claim a maximum of 90% of the 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.
- The Employment Bridging Emergency Fund is a compensation for turnover you have missed from 1 March 2020 onwards.
- You need to continue to pay the wages of the employees in full.
- 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 can claim compensation for three months, with the possibility to extend it once, for a further three months (additional conditions may apply to an extension application).
- Applications that have already been made (based on the WTV) but not yet settled will be handled in the new scheme.
Where can I apply?
The NOW scheme is currently being worked out in more detail, and an application form is being prepared. It is not yet clear when applications can be submitted, probably within the next 1-2 weeks.
Need help?
Our Employment law team is happy to answer further questions you might have.