Key information on Temporary Measure Emergency Fund Bridging Employment

As you may have heard by now, on March 17, 2020, the Cabinet decided to institute a number of emergency (financial) measures to alleviate somewhat the pain for business owners due to the coronavirus. One of these is the temporary measure Emergency Employment Bridging Fund. This immediately replaces the Working Time Reduction Scheme, which allows 'part-time unemployment' and about which we informed you in detail last week.

The outline of the new regulation is known, see this link.

In the coming days, as the contours of the settlement become more clear, we will provide you with more details. For now, we update you on key information about the emergency measures.

The Bridging Scheme: key points for you as an employer

1. The Bridging Scheme is a direct financial compensation of labor costs, related to the loss in turnover. The compensation must be requested from the UWV, which advances the amount requested. Afterwards, it is determined what the actual loss of turnover was. The scheme is therefore not linked to the employee's unemployment benefit.

2. One of the conditions for the scheme is that the employer continues to pay full wages (100%). The compensation for wage costs is up to 90%. Another condition is that during the period of compensation, employees will not be presented for dismissal on the grounds of business economics. This seems to imply that dismissal on other grounds will still be possible.

3. Have you submitted an application for short-time working? Already submitted applications for short-time working are considered as submitted applications for the Bridging Scheme. However, additional information will be requested from the submitter. The Bridging Arrangement will take effect retroactively as of March 1, 2020.

Other important measures

1. For self-employed workers affected by the coronavirus, it will be possible to receive a supplement (for three months) for their living expenses. The amount of compensation depends on the income and family composition of the self-employed person.
2. The premium differentiation for unemployment benefits that has been in place since Jan. 1, 2020, under the Balanced Labor Market Act will be adjusted to allow staff to work more than 30% overtime.

In the meantime, if you have any questions about the newly announced emergency measures or your already submitted request for reduced working hours, feel free to call or email us.

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