EXTENSION OF THE DUTCH TEMPORARY WAGE ALLOWANCE THE EXTENDED NOW 2.0
On 20 May 2020, the Minister of Social Affairs announced that the Dutch Temporary Wage Allowance (‘Noodmaatregel Overbrugging Werkgelegenheid’ - NOW) will be extended for another 3 months (June, July, August 2020).
The website to apply for the extended NOW 2.0 is expected to open on 6 July 2020.
The extended NOW 2.0 will have a similar system as the existing NOW:
If the company’s turnover will decrease with at least 20% due to the impact of the Corona virus, the Dutch Social Securities Authorities (UWV) will compensate personnel wages during three months (June, July and August 2020) by paying a subsidy.
For the extended NOW 2.0 additional conditions apply. Below you will find a summary of the additional conditions of NOW 2.0 which are expected:
- The wage compensation sum to be paid will increase, for the fixed wage component in the sum to be paid will be increased from 30% to 40%. Therefore the extended NOW 2.0 will also compensate other business costs than solely wage costs.
- The penalty for a redundancy for business economic reasons will be decreased (from 150% to 100%).
- If the company requests a termination permit within the window 1 June – 31 August 2020 based on redundancy with the Dutch Social Securities Authorities (UWV), the salary of the concerning employee will be deducted from the Now 2.0-subsidy.
- In the event of a intended collective redundancy (20 or more employees), the company should declare that it will discuss the collective redundancy with the labour unions. Requesting a redundancy permit with UWV can only be submitted 4 weeks after notification to the labour unions.
- The company may not distribute any dividends and/or award any bonuses for board over the year 2020, nor will it redeem any own shares.
- The company should declare that it encouraged its employees to follow relevant business training courses.
As soon as the text of the extended NOW 2.0 is published, we will inform you further about the details and application process.
If you have any questions, or if you need assistance with the application for the Temporary Wage Allowance, please contact your lawyer with Pallas Attorneys-at-Law, or contact Alain Camonier on +31 20 470 93 64, or by e-mail: alain.camonier@pallas.