Emergency measure Bridging for Work Retention (NOW)

The regulation Reduction of Working Time  has been discontinued and the cabinet has introduced the temporary Emergency Measure Bridging for Retention of Work (NOW). Consultations are currently being held with the UWV about the exact implementation of this emergency measure.

What does the new emergency measure entail? 

• Employers can apply for a substantial contribution to wage costs and receive an advance from UWV for this;
• With this deposit, employers can continue to pay employees with a permanent and a flexible contract;
• The allowance can at least be applied for three months, with the possibility of extension by another 3 months.

Conditions for NOW

• In the application, the employer commits to the obligation not to apply for dismissal on grounds of economic reasons for employees during the period for which the allowance is received;
• The employer expects at least a 20% loss of revenue (for revenue drops from 1 March 2020);
• An audit report is required for applications above the amount of the allowance that is yet to be determined.

For how long can an allowance be obtained?
The application is valid for a period of 3 months, which can be extended once for a further three months (further conditions may be imposed on the extension).

Height allowance
The amount of the wage costs allowance depends on the drop in turnover, with a maximum of 90% of the wage bill. For instance:

• 10% of the turnover is lost: the allowance amounts to 90% of the employer's salary;
• 50% of the turnover is lost: the allowance amounts to 45% of the employer's wage bill;
• 25% of the turnover is lost: the allowance amounts to 22.5% of the employer's salary.

First a deposit
On the basis of the application, the UWV will first issue a deposit in the amount of 80% of the expected contribution. It will be determined afterwards what the actual drop in revenue has been. When the allowance is finally determined, an adjustment will still be made if there has been a decrease in the wage bill.

Situation
It is not yet possible to submit a NOW application. As soon as more is known about this, Dutch Legal Experts will provide further information.

Need help?
Dutch Legal Experts is ready to advise you. If you would like to discuss the new measure or other work-related issues, please do not hesitate to contact us.

March 20, 2020