Government measures Covid-19 for self-employed & businesses

2.1. In recent weeks, there has been an unprecedented level of wtv appeal. The purpose of the wtv scheme is to enable employers to retain their staff when there is a temporary substantial loss of working hours due to a calamity beyond the normal business risk. The coronavirus outbreak is one such calamity. Since the scheme was not calculated to handle such a large appeal, it was withdrawn with immediate effect and work is now underway to introduce and open the NOW scheme.

2.2. The government calls on employers to keep employees employed as much as possible for the hours they worked. For this reason, the government mentions that NOW scheme provides for the support in the form of compensation for the wage costs of permanent employees and employees on flexible contracts to the extent that they remain employed during the application period. According to the government, this means that workers with flexible contracts can also be kept employed with the help of the allowance. Temporary employment agencies can also apply for temporary workers employed by them, according to the government. Exactly what impact this will have on flexible contracts and their extension remains to be seen from the development of the NOW scheme.

2.3. Based on the desire to retain employees as much as possible, employers are required to commit in advance to the obligation not to request dismissal for economic reasons for employees during the period for which the allowance is received.

2.4. The NOW scheme allows for faster financial relief for employers and applies to companies of all sizes. The difference with the wtv scheme is that the application process is decoupled from the WW, simplifying the process and not “sacrificing” employee WW rights.

2.5. Eligibility for the NOW scheme is conditional on at least 20% revenue loss, noting that the scheme only covers revenue loss from March 1, 2020. With the UWV, for a period of three months, a loss-of-turnover-related compensation for labor costs in the amount of up to 90% of the wage bill can be requested. The amount of the allowance for labor costs depends on the decline in sales. Here are some examples of how the relationship between decline in turnover and amount of allowance works out:

• if 100% of sales are eliminated, the allowance is 90% of an employer’s wage bill;
• if 50% of turnover is lost, the allowance is 45% of an employer’s wage bill;
• if 25% of turnover is lost, the allowance is 22.5% of the employer’s wage bill.

2.6. The UWV will provide an advance of the allowance (at least 80% of the amount) based on the application. Afterwards, it is determined what the actual loss in revenue was. An auditor’s report is required for large applications. When the allowance is finally determined, a correction is made if there has been a decrease in the wage bill. Subsequent payment or recovery may be an issue.

2.7. Employers pay 100% of wages to affected employees. The three-month period may be extended once for another three months. The regulation may stipulate further conditions for the extension.

2.8. Wtv applications already submitted before March 17, 2020 6:45 p.m. but not yet completed will be considered as submitted applications for the new NOW scheme. Additional information is requested from the submitters. For exemptions already granted, extension of the permit beyond six weeks is not possible. In that case, these employers can apply under the NOW scheme.

2.9. Currently, the Ministry of Social Affairs and Employment is busy working out the NOW scheme. As soon as the date is known from which applications can be submitted to the UWV, it will be widely publicized. The arrangement is expected to be finalized within two weeks.