Dentons - The Netherlands' working time reduction scheme replaced by Temporary Emergency Measure to Safeguard the Preservation of Jobs (Tijdelijke noodmaatregel overbrugging voor werkbehoud)
The Netherlands' working time reduction scheme replaced by Temporary Emergency Measure to Safeguard the Preservation of Jobs (Tijdelijke noodmaatregel overbrugging voor werkbehoud)
In the recent weeks, due to the COVID-19 outbreak, the Dutch government has been overwhelmed with applications for a reduction in working time permit. Under this scheme, employers can temporarily reduce working time, and their employees receive a temporary unemployment benefit for the hours not worked, while remaining fully employed. However, this scheme is not designed for the quantity of the current applications. Therefore, the Dutch government decided to withdraw the reduction in working time scheme with immediate effect as of 17 March 2020 at, 18:45.
The reduction in working time scheme has been temporarily replaced by the Temporary Emergency Measure to Safeguard the Preservation of Jobs (Tijdelijke noodmaatregel overbrugging voor werkbehoud). Employers can apply at the Dutch Labor Office (UWV) for compensation, if they expect at least a 20% loss of turnover. The exact compensation is dependent on the percentage of loss of turnover and can amount maximum 90% of the wage bill. It is not yet clear if the wages to which this applies will be maximized. The compensation can be granted for a period of three months, with a possible extension of another three months. During this period, employers continue to pay 100% of the salary of the employees.
Applications for a reduction in working time permit that have already been submitted, are now considered to be applications for the Temporary Emergency Measure.
If employers apply for this compensation, they commit themselves to not filing an application for dismissal due to business economic grounds for their employees, during the period they receive compensation based on the Temporary Emergency Measure.
UWV will pay an advance compensation of 80% of the requested amount.
It is not yet clear when UWV will be ready to take on applications. The Dutch government and UWV are working on this.The exact wording of the Temporary Emergency Measure has not been published yet. This alert is based upon the press release by the Dutch government. As soon as this is announced, an update will follow regarding the specific details.