Update Coronavirus: Amendments the NOW 2.0 scheme
The recently published NOW 2.0 scheme deviates from the previously presented scheme on a number of points. The main points and changes of the NOW 2.0 scheme are set out below.
Under the NOW 2.0 scheme, a company that expects a loss of turnover of at least 20% can claim compensation for wage costs for the period June, July, August, and September 2020. This is one month longer than initially indicated. As with the NOW 1.0 scheme, the NOW 2.0 scheme is also subject to the obligation to inform the works council, employee representation, and/or employees about a NOW 2.0 application. The application period for the NOW 2.0 scheme is from 6 July to 31 August 2020. If you will only make use of the NOW 1.0 scheme, the application for the final determination can be submitted from 7 October 2020. If you have submitted an application for both the NOW 1.0 scheme and the NOW 2.0 scheme, the final determination can be requested after both periods have elapsed (from 15 November 2020 at the earliest).
Determination of the wage bill
The month of March 2020 - and in the absence of data for this month - November 2019, is taken as the starting point for the determination of the wage bill. The final determination will compare this wage bill with the wage bill for the four-month period (June to September 2020). Under the NOW 2.0 scheme, the fixed compensation calculated on top of the wage bill is increased from 30% to 40%. This compensation relates to additional employer’s contributions, such as costs relating to any pension scheme(s) and/or the reservation of holiday allowance.
The change that was made to the NOW 1.0 scheme with regard to an extra period wage, also applies to the NOW 2.0 scheme. For example, the wage bill will be corrected if the employer has paid out an extra period salary. An extra period salary should be understood as: “extra wage that is paid in addition to the regular wage and holiday allowance as a result of agreements in the individual or collective bargaining agreement and that is not dependent on company results or qualitative or quantitative performance of the employee”. Such as a thirteenth month.
Where the NOW 1.0 scheme provided for a separate regime for seasonal work, this does not apply to the NOW 2.0 scheme. An alternative determination of the wage bill is also less necessary because the reference wage bill shifts from January 2020 to March 2020.
Other issues we discuss:
- Determination of turnover
- Dividend and bonus payments and repurchase of own shares
- Dismissal for economic reasons and report in connection with the Collective Redundancy (Notification) Act (Wet melding collectief ontslag, WMCO)
- Best efforts obligation with regard to training
- Expense allowances
Should you have any questions about this update, please contact your usual account manager or one of the specialists. Use the button to download the gratuitous factsheet below.