Watch our webinar! “Tricky sickness issues”

NOW 2.0: The (new) conditions you, as an entrepreneur, have to meet

Publication date: 26 May 2020
The Emergency bridging measure for sustained employment (NOW) will be extended for the period from June up to and including September. Several conditions and rules will change. For instance, the dismissal fine will lapse and a higher wage bill of the employee will be assumed.

Emergency bridging measure for sustained employment (NOW)

Background and purpose

  • One-off extension of the compensation of up to 90% of the wage costs in the period from June up to and including September 2020.

Application and decision

  • It is expected that you can apply for the compensation at the Employee Insurance Agency (UWV) from 6 July up to and including 30 September 2020.
  • Both entrepreneurs who already have invoked NOW 1.0 and entrepreneurs who are invoking NOW for the first time can submit an application.
  • The UWV will issue a decision within 13 weeks upon receipt of the full application.
  • You will first receive an advance of 80%. When the compensation has ended, you will have to prove your actual drop in turnover. If you receive a compensation of € 125,000 or more, or an advance of € 100,000 or more, you will be required to provide an audit opinion.
  • The name of the applicant, including the advances granted and compensation determined, will be published on the UWV website without an opinion having to be asked first.

Conditions

  • At least 20% (group) loss in turnover from 1 June 2020.
  • You have to continue to pay employees 100% of their wages.
  • You have to inform the works council/employee representative body/staff meeting about the NOW compensation received.
  • You do not submit applications for dismissal for commercial reasons during the time you receive the compensation, otherwise a correction will be made to the subsidy with 100% of the amount of the wage bill of the employees for whom dismissal was requested. The additional fine of 50% of the wage bill of these employees, which was claimed in NOW 1.0, will lapse.
  • If you do make employees redundant during the time you receive the NOW compensation, you must comply with the obligations of the Collective Redundancy Notification Act in the event of a dismissal of 20 employees or more. Furthermore, a correction will be made to the subsidy and you will owe a fine of 5% of the eventual subsidy. This fine is not payable if you make dismissals with the consent of the trade unions or after mediation by a committee of the Labour Foundation.
  • If you receive a compensation of € 125,000 or more, or an advance of € 100,000 or more, you may not make a profit distribution to shareholders for this year, or pay bonuses to the board and management (only to ‘regular’ employees), or buy own shares.
  • You have to encourage your employees to undergo training and retraining (effort obligation).

Calculation of wage costs and loss in turnover

  • The reference month for the wage bill will be March 2020 (instead of January 2020), so that any thirteenth month is ‘filtered’ out of the wage bill and seasonal businesses are taken into account.
  • The wage costs will be calculated as follows: wage costs x 3 x 1.4. The basis is the wage for social insurance purposes, where the UWV adds a fixed 40% (instead of 30% in NOW 1.0) for, inter alia, holiday pay, pension contributions and other employer costs.
  • The compensation is calculated as follows: percentage of drop in turnover x 90% x wage bill.
  • The maximum wage per employee is € 9,538. This equals twice the maximum daily wage per month. Salaries above this amount will not be compensated.

More information

Do you have any questions about NOW 2.0 or any other government support measures? Please contact our coronavirus crisis team:

You can call us at 020 – 301 55 55 or ask your questions using the form below:

    Share on social media

    • Employment law and dismissal

    Three important topics to include in your employment contract under Dutch, US and UK law

    15 July 2021

    In the last issue of Stare Decisis, Priscilla de Leede of Russell Advocaten, Mary Edenfield of Mateer Harbert and Ed Belam of Marriott Harrison discuss the most important topics to include in your employment contracts regarding the termination of the contract. There are some important differences to take into account!

    read on
    • Employment law and dismissal

    Dismissal of sick statutory director

    18 June 2021

    A sick employee may not be dismissed. However, an employee who knows of imminent dismissal, cannot avoid this by reporting sick. But when does the employee know that this is the case? This question was central to the court case concerning the dismissal of a CFO of Volksbank.

    read on
    • Expats
    • Employment law and dismissal

    17 June 2021: Employment Webinar “Tricky sickness issues”

    17 June 2021

    If your employee reports sick, this may raise many difficult questions. What are your reintegration obligations during the sick leave period? What are you allowed to record about your sick employee with regard to the privacy legislation? We answered these and other questions during a webinar. Watch the video!

    read on
    • Employment law and dismissal

    Be careful with the employer’s statement!

    14 June 2021

    Before obtaining a mortgage or rental contract, banks or landlords often ask for an employer’s statement. Such a statement can sometimes have unintended consequences for the employer. What do you need to be aware of?

    read on
    • Employment law and dismissal

    Statutory minimum wage as of 1 July 2021

    2 June 2021

    As of 1 July 2021, the statutory minimum wage and minimum youth wage will be increased. What are the new amounts of the minimum wage?

    read on
    • Works Council
    • Employment law and dismissal

    Works council

    4 May 2021

    Is there already a works council in your company? Are you a member of your company’s works council? What are the advantages of having a works council in your company? Jan Dop and Priscilla C.X. de Leede explain the role of the works council and give an overview of the works council’s most important rights.

    read on
    • Expats
    • Administrative law and the environment

    The Netherlands: Gateway to Europe

    3 May 2021

    The Netherlands likes to present itself as “the gateway to Europe.” And not without reason: excellent travel connections (Schiphol Amsterdam Airport and Rotterdam Seaport) and a highly educated population speaking several languages.

    read on
    • Art
    • Employment law and dismissal

    Russell Advocaten recommended by The Legal 500 2021

    20 April 2021

    Russell Advocaten has for the 17th consecutive year in a row been included in The Legal 500. We are pleased with the recognition for the quality of our legal services by experts and clients. Please read what they say about us:

    read on