Blog

Our workshops and current events

Latest news-archive

Dutch measures with regard to labor costs related to COVID-1918-03-2020

The Minister of Social Affairs announced on March 17, 2020 that employers can apply for a compensation of wage costs if they expect at least a 20% loss of turnover due to the Corona crisis. This compensation scheme, the Temporary Emergency Measure Bridging for Work Retention (NOW), temporarily replaces the current reduction in working hours regulation that has expired immediately.

Although the scheme has yet to be worked out in detail - which is expected to happen within the next two weeks - the following is known:

 

  • a condition for entitlement to the allowance is a fall in turnover of 20% or more, counting from 1 March 2020
  • the government subsidizes up to 90% of the wages over a period of three months, in proportion to the loss of turnover
  • the three-month period may be extended by three months, under (new) conditions
  • the employer may not apply for dismissal on grounds of economic reasons for his employees during the period for which the allowance is received
  • the employer continues to pay 100% of the wages, including the wages of employees who are employed on the basis of a flexible contract insofar as they remain employed during the application period

The allowance could therefore look like this:

Employer salary sum over three months = EUR 100,000

Sales decrease = 50%

Allowance = (90% x 50%) = 45% of 100,000.00 = EUR 45,000.00

On the basis of the application, UWV will provide an advance payment of the allowance (in any case 80% of the requested amount). It is subsequently determined what the actual loss in turnover was and what the wage bill was. When the actual amount compensation is determined in retrospect, which in some cases will require an audit report, a correction takes the form of a back-payment or a refund.

Applications for Working time reduction that have been filed up to and including March 17, 2020, but have not yet been settled, will be settled in the new NOW arrangement.

Other measures

In addition to the NOW, the following measures have been announced:

  • 30% premium differentiation rule does not apply (temporarily) in certain sectors. The provision that employers must pay the high unemployment insurance premium retroactively for permanent employees who have worked overtime for more than 30% in a calendar year will be adjusted for sectors that deal with a lot of overtime due to the crisis (for instance health care).
  • Courtesy arrangement premium differentiation: In December 2019, Minister Koolmees gave employers until April 1, 2020 to have a permanent employment contract for permanent employees (the 'courtesy arrangement') in their administration. This period will be extended until July 1, 2020. The arrangement applies to employees who were employed for an indefinite period by December 31, 2019.

 

We will inform you as soon as the definitive text of the regulations and the application module NOW are available. If you have any questions in the meantime, please do not hesitate to contact us on +31 30 220 3111 or by email: info@vanbladeladvocaten.nl

Van Bladel Advocaten

11-01-2022Full transition payment for partial continuation of employment contract

In 2018, the Supreme Court ruled (in the so-called 'Kolom judgment') that an employee may be entitled to a partial transition payment in the event of partial termination of the employment contract. But what happens to the right to a transition payment if an employment contract is not officially “terminated” and the parties only implicitly make an agreement that fewer hours will be worked? This question recently has been considered by the court of Central Netherlands (judgment 30 April 2021 Central Netherlands District Court).

Read article

07-07-2021Full transition payment for partial continuation of employment contract

In 2018, the Supreme Court ruled (in the so-called 'Kolom judgment') that an employee may be entitled to a partial transition payment in the event of partial termination of the employment contract. But what happens to the right to a transition payment if an employment contract is not officially “terminated” and the parties only implicitly make an agreement that fewer hours will be worked? This question recently has been considered by the court of Central Netherlands (judgment 30 April 2021 Central Netherlands District Court).

Read article

29-10-2020Can an employer require from his employees to wear a face mask?

The Dutch government urgently advises to wear a face mask in public indoor spaces. There is no legal obligation (yet) to wear a face mask, but many employers are considering to introduce a face mask obligation into the workplace. What about from an employment law perspective?

Read article

29-10-2020What employers need to know about working from home

As a result of the coronavirus, a large part of the employees has been working from home for more than six months. Now that the number of infections is increasing again, it seems that this will last for a longer period. This blog covers a number of employment law aspects of long-term work from home, such as health and safety rules, the employee’s freedom of choice with regard to working from home, the monitoring of the work by the employer and the reimbursement of (additional) costs. Finally, attention is paid to the phenomenon of ‘home working arrangement’, because we notice that many employers consider to introduce such arrangement.

Read article

11-08-2020Holiday and corona: what about the right to pay?

The holidays have started. What about wages when an employee goes on vacation to an area with a yellow, orange or red travel advice?

Read article

06-07-2020Does the employee have a right to working from home in connection with Covid-19?

Many companies let their employees work from home as much as possible in recent weeks in connection with the corona crisis. Employees are slowly returning to the office now that the virus seems to be under control. Companies will have to ensure that work in the office can be carried out in a safe manner and must therefore take measures to prevent the spread of the virus at work as much as possible. Suppose the employee does not like to return to the office. Can he or she refuse to go back to the office, given the applicability of Dutch employment law? In a case that was brought before the Gelderland District Court, the judge ruled on June 16, 2020 that this was not allowed.

Read article

18-05-2020Remarkable Supreme Court decision: Employers be alert to your employee's request to change employment

This so-called Victoria ruling of the Supreme Court of 21 February 2020 can have far-reaching consequences for employers who are confronted with a request from their employee to change the employment contract to work fewer hours (based on the Flexible Working Act) or another change proposal that they must reasonably accept as a good employer. Such a request can, under certain conditions, lead to a partial transition payment. Employers must be prepared for such a request to be made in termination proceedings, so that the employee will remain employed if the request is honored by a judge, even with a full dismissal ground. The Supreme Court thus strengthens the position of the employee.

Read article

08-05-2020Change NOW: application for individual operating company under conditions possible

On 1 May 2020, the next change to the NOW was announced and finalized. The group provision has been relaxed, in that operating companies can now also apply for NOW separately if the group's loss of turnover is less than 20%.

Read article

09-04-2020Amendments to the Temporary Emergency Measure Bridging for Work Retention Regulation (‘NOW’)

The NOW regulation, which was announced on March 31, has already changed in a few areas. This mainly concerns an extra test when submitting a dismissal application for business reasons during the NOW period and a change in the way in which the fine that applies is calculated. In this blog we inform you about the changes.

Read article

31-03-2020Publication details of Temporary Emergency Measure Bridging for Work Retention regulation (“NOW”)

Today, 31 March 2020, the Dutch government has published the details of the Temporary Emergency Measure Bridging for Work Retention regulation (“NOW”). The NOW aims at making it possible for employers to retain their employees as much as possible in the event of a loss of turnover of at least 20% as a result of the Corona crisis. To this end, a compensation in wage costs is provided of a maximum of 90% of the wage bill, related to the percentage of the decrease in turnover. Below the most important questions and answers are summed up.

Read article

24-03-2020Q&A for employers in times of Covid-19

Van Bladel Advocaten has received several questions in relation to the Covid-19 virus in relation to the workplace over the last weeks. We have bundled the most relevant questions in this blog. Please refer to our website regularly for updates and new developments.

Read article

10-03-2020Corona virus and employment law – an overview for Dutch employers

The so-called Corona virus (COVID-19) has also reached the Netherlands. Worldwide measures are being taken to prevent further spread of the virus. What does this mean for local employers and employees? This article answers questions about the obligation of the employer to prevent contamination, the entitlement to salary (whether or not in quarantine), privacy aspects and the Dutch subsidy arrangement on shortening of working hours (“Werktijdverkorting”).

Read article