The NOW program will be extended for a period of 3 months covering the wage costs for the period June, July and August 2020. Employers with more than 20% turnover loss can apply for compensation under the NOW to receive up to 90% compensation of their employees' wages.
The decrease in turnover is determined over a three-month period that starts on 1 June, 1 July or 1 August 2020 following the mechanics of NOW 1.0. For the months June, July and August 2020 you can apply for NOW 2.0 from 6 July 2020.
Although details of NOW 2.0 are yet to be published, a number of differences can be recognized:
- The wage costs reference month will be March 2020.
- If you dismiss employees on economic grounds you have to back 100% of the compensation you received per employee. In effect you no longer pay the fine as was the case under NOW 1.0.
- If you want to dismiss 20 employees or more on economic grounds, you must consult the unions as is normal in case of collective redundancies. The usual protection against dismissal remains in place.
- The 30% surcharge for the accrual of among others holiday allowance, pension contributions and other employer’s contributions will be increased to 40%.
- You are obliged to stimulate your employees to take retraining or reskilling courses. You will have to include a statement with your application.
- You are not allowed to pay out bonuses or dividend and you may not buy (back) your own shares.
Our Corona Crisis Team will be able to assist you with your NOW application.
29 May 2020
