Government measures in key jurisdictions 2nd edition final pages - Flipbook - Page 96
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.
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 August 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 March 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. As of June 2020, a correction to the subsidy will be applied in case
of dismissals. However, the penalty for making employees redundant will no longer apply.
Furthermore, the subsidy may also be used for purposes other than the payment of wage
costs. When using the scheme, companies are prohibited, amongst other things, to make
profit distributions to shareholders, pay bonuses to the board and management, and/
or repurchase their own shares. Applications may be submitted via UWV.
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96
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. For more information, see here.
•
At the Parliament’s request, the cabinet is currently working on a temporary and feasible
solution for dismissed flex workers who do not meet the conditions for unemployment
or social assistance.
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
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