Emergency Measure Bridging for Job Retention 2.0
May 20, 2020
On May 20, the government announced that the current NOW measure will be extended by three months. The scheme remains largely the same, but some conditions for employers change and the so-called dismissal fine is limited. Below we give you a brief overview of these changes.
We previously explained in detail what the Emergency Bridging Measure for Retention of Work (NOW) means for you. This first aid measure applied for the months of March, April and May. NOW 2.0 is an extension and applies for the months of June, July, August and September. The purpose of the measure remains: to support employers and keep as many jobs as possible.
Still, there are a few changes between NOW 1.0 and NOW 2.0. For example, stricter conditions apply to employers who apply for compensation. We list the changes:
- The fixed (fixed) surcharge will be increased from 30 to 40 percent. Put simply, this means: your employer will receive more compensation per employee. This makes it easier for your employer to continue to contribute to employer contributions, such as holiday pay and pension.
- When applying for NOW compensation, employers must declare that they are consulting with vakbondand if they request business redundancies for more than 20 employees.
- Employers applying for a NOW allowance are obliged to encourage their employees to take up training and retraining. They make a statement about this with the application.
There is one more important change in the new bailout package. In the first version of the NOW, there is a condition: an employer may not submit an application for dismissal for business economic reasons as long as he receives an allowance. If he does, he will receive a so-called 'dismissal fine'. It works as follows:
To calculate the amount of the subsidy, the application looks at the costs that an employer pays in wages - the wage bill. The compensation during support is based on this. Does he then submit an application for dismissal for employee A? Then the wage bill is reduced by employee A's wages, plus 50 percent of that wage. This means that the allowance will also be lower.
Under NOW 2.0, this dismissal fine will not be scrapped (as expected), but limited: the wage bill is still reduced by the employee's wages, but not by the 50 percent extra.
An employer applies for commercial dismissal for more than twenty employees, without approval vakbond or works council? Then he will receive a dismissal fine of 5 percent of the total allowance.
Questions about the Emergency Bridging Measure for Retention of Work, the extension or the new conditions? Feel free to ask our Service Center! They are ready for you every working day, from 8.00 a.m. to 18.00 p.m. email@example.com or 0345 851 963.