Coronavirus - Government measures in key jurisdictions - Flipbook - Page 79
The Netherlands
2
Employment
•
What financial
support is the
government
providing to
businesses and
to individuals
on employment
issues?
A subsidy is available for employers that pay Dutch wages and expect to see at least
a 20% decline in turnover over a three-month consecutive period between 1 March
2020 and 31 July 2020, the starting date of which falls on the first day of March, April
or May 2020.
The benchmark is the average turnover over the course of three months in 2019 for
companies which existed in 2019. The subsidy is up to a maximum amount of 90% of
the wage bill (the wages of all employees) for the period from 1 March 2020 up until
31 May 2020. Only in the event of a 100% decline in turnover, will 90% of the total
wage bill be paid out. If the decline in turnover is lower, the subsidy will be set at a
proportionately lower level.
Based on the application, the Dutch Employee Insurance Agency (the UWV) will pay
an advance payment of 80% of the estimated amount of the subsidy based on the
expected decline in turnover and the employers’ actual wage costs in January 2020.
A final settlement will take place on the basis of the actual turnover which normally
requires an audit opinion.
In cases of a composition of legal entities, the decline in turnover is assessed at
group level. This means that if a group as a whole has a decline in turnover of less
than 20%, the individual members of that group are not eligible for a NOW subsidy.
A maximum of twice the maximum daily wage per month per individual employee
is taken into account as salary. Compensation for each individual employee’s wage
is capped at EUR 9,538 per month. In using the scheme, companies are obligated,
amongst other things, to use the subsidy exclusively for the payment of wage costs
and not to apply for dismissal for commercial reasons during the period of the NOW
subsidy. Probationary period dismissals and non-renewal of fixed-term contracts are
not regarded as such. Any extension of the subsidy period will be announced before 1
June 2020. Applications may be submitted via UWV.
3
Insolvency
Has the
government
made any
changes to
insolvency
legislation?
•
A measure is available for the self-employed registered in the business register before
17 March 2020. The support may take the form of a benefit payment up to a certain
maximum amount (social minimum) and/or a loan for working capital to solve liquidity
problems.
•
No viability test will be applied so that the requests may be processed quickly, i.e. 4
weeks instead of the regular 13-week period. The level of income support depends
on income and the household composition but is a maximum of approx. EUR 1,500
per month (net). This income support does not need to be paid back. The accelerated
procedure also applies to loan applications for working capital up to a maximum of EUR
10,157. In addition, a lower interest rate than the regular rate will be applied on the loans.
The Dutch Ministry of Justice and Security published a bill on 8 April 2020 on temporary
provisions in the area of the Ministry of Justice and Security in connection with the
coronavirus ( COVID-19) outbreak (the “Emergency Act”) and an accompanying
Explanatory Memorandum.
The Emergency Act provides for, among other things:
•
a temporary limitation on the ‘presumptions of proof’ for directors’ liability in case of
bankruptcy if filing the annual accounts is delayed as a result of COVID-19, and
•
the extension of the period for preparing annual accounts by the management board
instead of by the general meeting.
Government measures in key jurisdictions
79