Modification of the Temporary Emergency Bridging Measure to Preserve Employment
Corona update: modification of the Temporary Emergency Bridging Measure to Preserve Employment
On 22 April 2020, Minister Koolmees indicated in a letter that he would make a number of changes to the NOW scheme. Koolmees was writing in response to a number of motions and assurances made during the legislative consultations on 14 April 2020.
Modification of the NOW scheme for groups of companies
If a company is part of a group, the expected decline in turnover of the entire group must be taken as the basis for all NOW applications by any group entity. Within a group of companies, there may be legal entities that expect a 20% or more decline in turnover and legal entities that expect a smaller decline in turnover or even no loss of turnover at all. If a group has a loss of turnover of 20% or more, all legal entities within this group can submit a NOW application, regardless of the actual loss of turnover of the legal entity in question.
In practice, because the scheme is based on a decline in turnover of the entire group, some operating companies may sustain a substantial loss of turnover although the group as a whole expects a loss of turnover of less than 20%. These operating companies are unable to apply for the NOW scheme because they do not fulfil the requirements. As a result, employment in these operating companies may come under pressure. For this reason, Minister Koolmees has modified the NOW scheme in this regard.
Other issues we discuss:
- Regulations and new conditions
- Control measures
- Review of the situation under the Balanced Labour Market Act
- Reduced working hours and salary requirements for work permits