Your lawyerPriscilla C.X. de Leede, LL.M.
Priscilla de Leede advises national and international entrepreneurs and organisations in disputes concerning personnel, employee participation, and social security. She is a member of the employment law and dismissal group at Russell Advocaten.
t: +31 20 - 301 55 55
NOW 3.0: When can you, as an employer, claim this?
Temporary Emergency Bridging Measure for Sustained Employment (NOW)
Background and objective
- From March to September 2020, NOW 1.0 and NOW 2.0 were in force.
- As of October 2020, NOW 3.0 will apply, a compensation for wages over three periods of three months each (9 months total) with a gradual decrease of 80% of the wage bill (first period), to 70% (second period), to 60% (third period).
- The three periods will be:
- First period: October – December 2020
- Second period: January – March 2021
- Third period: April – June 2021
Application and decision
- You can apply for the NOW 3.0 allowance from 16 November 2020 up to 13 December 2020 (first period) at the Employee Insurance Agency (UWV).
- The expected application period for the second period is 15 February 2021 up to and including 14 March 2021.
- The expected application period for the third period is 17 May 2021 up to 13 June 2021.
- Both entrepreneurs who claimed a previous NOW-scheme and entrepreneurs who claim NOW for the first time can submit an application.
- The UWV pays the NOW 3.0 allowance in 3 times within a period of approximately 3 months.
- Again, you will first receive an advance payment of 80% from the UWV. Following the period in which you received the NOW 3.0 subsidy you will have to report your actual turnover loss.
- A minimum turnover loss of 20% in the first period (October – December 2020).
- A minimum turnover loss of 30% in the second and third period (January – June 2021).
- You must inform the works council/employee representative body/staff meeting of the NOW allowance received.
- In the event of dismissal of 20 employees or more, you must comply with the obligations laid down in the Collective Redundancy (Notification) Act.
- In certain cases, you may not make a profit distribution to shareholders, pay bonuses to the management board or board of directors, or purchase your own shares.
- You must make an effort to guide your employees that are threatened with dismissal from job to job (best efforts obligation).
Calculation of wage bill
- For the entire NOW 3.0 the reference period in 2019 will apply (1/4 of the turnover in 2019 is compared with the turnover of the corresponding three months in 2020 or 2021).
- As under NOW 2.0, the wage bill is calculated with a fixed surcharge of 40%, i.e. wage bill x 3 x 1.4.
- The maximum allowance per employee in the first and second period of the NOW 3.0 is twice the maximum monthly salary (€ 9,691). In the third period of the NOW 3.0, the maximum allowance per employee is once the maximum monthly salary (€ 4,845).
Other important changes compared to NOW 2.0
- The correction to the subsidy that applied during NOW 2.0 in the event you applied for a dismissal for business economic reasons during the period in which the allowance was received, will lapse.
- In return for the reduction of the allowance, there is the possibility of gradually reducing the wage bill of your employees by 10% (first period), 15% (second period) and 20% (third period of the NOW 3.0).
Do you have any questions about NOW 3.0 or other government support measures? Please contact our coronavirus crisis team:
- Reinier W.L. Russell, LL.M. (email@example.com)
- Jan Dop, LL.M. (firstname.lastname@example.org)
- Priscilla C.X. de Leede, LL.M. (email@example.com)
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