The Temporary Emergency Bridging Measure for Sustained Employment (NOW) providing financial help for employers to help pay their employees' wages has been amended.
In this update, we focus on the most important amendments that might affect your company. You can find our earlier message here. You can apply for the NOW scheme until and including May 31, 2020.
1. Turnover loss on entity level
One of the conditions to apply for NOW is that your company suffer a turnover loss of at least 20% for 3 consecutive months. The turnover loss is calculated on group level.
In case of a turnover loss less than 20% on group level, it is now possible to apply for the NOW on a turnover loss calculated on entity level instead.
The additional key requirements for the application on entity level are as follows:
- the business group may not pay out bonusses or dividend over 2020 nor may it buy its own shares;
- the operating companies for which NOW is claimed must make arrangements on maintaining employment with trade unions or employee representation;
- the applying operating company must be a legal entity;
- an intra-group secondment operating company (personeels-bv) within the group cannot apply;
- the transfer pricing policy may not be adjusted.
2. Disclosure of NOW data
The NOW is funded from public funds. Transparency about the use of these resources are therefore of great importance.
By submitting an application, the applicant agrees to the (possible) publication of information which is provided to the UWV for the NOW.
3. Foreign bank account requirement
A Dutch bank account had to be provided. By earlier amendment, 4 weeks were given to open a Dutch bank account in case the company did not have a Dutch bank account. Practice shows the impossibility of opening a Dutch bank account within this period. Based on these findings the NOW is adjusted: employers with a non-Dutch SEPA bank account number no longer need to provide a Dutch bank account number.
Foreign employers with Dutch employees and a SEPA bank account number fulfilling all other conditions therefore remain eligible for NOW.
UPDATE: Unlike the NOW for Dutch bank accounts, the application should be done by hard copy forms issued by the UWV. Foreign employers will first have to reach out to the UWV and disclose information such as the wage tax number.
Our Corona Crisis Team will be able to assist you with your NOW application.
