The first application period for the NOW grant ends today. The new NOW 2.0 scheme has not yet been announced. However, we already know what the scheme will look like in outline. Applications for the NOW 2.0 can be submitted from July 6, 2020. The NOW 2.0 applies for a period of four months and provides an allowance of up to 90% of the wage costs over the period June through September 2020. Again, as business owner , you must expect a loss of sales of 20% or more. If you are claiming the NOW benefit for the second time, the turnover period must match the period chosen in the first period.
Major adjustments to support package 2.0
The extended NOW 2.0 uses much the same system as the NOW 1.0, but with some important modifications:
- The NOW 1.0 calculated with a 30% surcharge on the amount of the wage bill (in connection with, for example, vacation pay) . However, this surcharge proved to be insufficient. Therefore, the surcharge is increased from 30% to 40%.
- The reference month for payroll will be March 2020. The NOW 1.0 assumed January 2020.
- Furthermore, a company using NOW 2.0 may not pay a dividend or bonus for 2020 and up to and including the shareholder meeting in 2021, and may not purchase its own shares if the advance to be received is €100,000 or more. For operating companies that have received a NOW grant as part of a group, this threshold amount does not apply; they must always adhere to it. This means that shareholders may not receive profit distribution, bonuses may not be paid to the board and management, and they may not repurchase their own shares.
- The NOW 1.0 provided for a severance penalty of 150% of the salary of the employee laid off during the grant period. In the NOW 2.0, the severance penalty correction remains, but is reduced to 100%.
- Companies are required to consult with unions when applying for NOW 2.0 if they wish to make company redundancies for more than 20 employees and must even receive an agreement from the union on the proposed redundancies or have submitted a mediation request to the Labor Foundation. In the absence of an agreement or mediation request, the NOW will receive a 5% cut of the total grant amount.
- Finally, employers applying for the NOW 2.0 are required to encourage their employees to engage in continuing and retraining. Employers will make a statement about this when applying for the NOW 2.0. In support of social partner initiatives, the cabinet is allocating 50 million euros through the crisis program 'NL learns by' through which people can follow online training and development advice free of charge from July to adapt to the new economic situation.
No duty to report suspected corona contamination
Importantly, Health Minister De Jonge further commented this week on the duty to report when an employee is suspected of being infected with the coronavirus.
If you as an employer suspect that your employee is infected with the coronavirus, you are not legally obliged to report it to the Public Health Service. This also applies to colleagues and the employee involved himself. If the company doctor diagnoses corona, he does have an obligation to report it to the GGD.
The foregoing is without prejudice to your responsibility as an employer to speak to an employee and possibly take action if an employee comes to work with corona-related complaints. Under the right of instruction, for example, you may send this employee home. A fellow employee may file a complaint with the Inspectorate SZW.
Want to know more about the revamped NOW scheme?
We expect the Cabinet to announce the final NOW 2.0 settlement during the next week. Once the regulation is known, we will inform you as soon as possible and our FAQ from employers will be updated.
Do you prefer personal advice? Feel free to call us or send me an e-mail. We are here for you!
