TEMPORARY EMERGENCY BRIDGING MEASURE NOW-SCHEME
18/03/2021
The NOW-scheme is intended for employers who are faced with a substantial loss of their turnover (at least 20%) due to Covid-19 and subsequent governmental measures against it. The employers can submit an application to the Employee Insurance Agency (the UWV) for a (partial) compensation/allowance of the wage costs. This ascertains the employers on continued payment of employee wages.
Conditions for the NOW 3.3 scheme (the fifth application period)
- An employer can apply for an allowance in case of an average turnover loss of at least 20% in the 3 consecutive months;
- The basis for the calculation of the allowance the wage bill of June 2020 is taken as a reference period;
- The total wage bill of June 2020 can be increased by 40% in order to compensate for costs such as employer's premiums, employee contributions to pension and the accrual of holiday pay;
- The wage bill may decrease by a maximum of 10% compared to the wage bill in June 2020, without this being at the expense of the definitive allowance;
- The allowance is for a period of 3 months;
- The allowance is maximized at 85% of the wage costs;
- A maximum of € 9,718 per month applies per employee (twice the maximum daily wage);
- The employer dismisses an employee or the employee’s contract expires; The employer has a best-efforts obligation to guide his employee to other work. Otherwise, a 5% discount to the allowance will be applicable;
- It does not matter whether the employer has also received an allowance for earlier periods of NOW;
- Distribution of profit and bonuses to shareholders, board and directors, and buying own shares are not allowed when the allowance exceeds € 100,000 or when the definitive allowance exceeds € 125,000. This also applies to affiliated entities whereto the employer belongs;
- All documents must be kept for another 5 years after the allowance has been awarded.
Application date :
NOW 3.3 application is probably possible from May 17, 2021 to June 13, 2021. The final dates are still to be announced.
Deposit
The UWV provides an advance of 80% of the expected allowance with the application. This advance is calculated by using the wage bill for June 2020.
Auditor's report
- An auditor's report is required by the UWV for an advance of € 100,000 or a fixed subsidy from € 125,000.
- A third-party declaration is required by the UWV for an advance between € 20,000 and € 100,000 or for a definitive contribution between € 25,000 and € 125,000.
References:
https://www.rijksoverheid.nl/onderwerpen/coronavirus-financiele-regelingen/overzicht-financiele-regelingen/now/algemene-informatie-over-now3-vanaf-oktober-2020
https://www.uwv.nl/werkgevers/overige-onderwerpen/now/index.aspx
This document provides general information on the subject and does not constitute a legal opinion or recommendation. Consulting a specialist is recommended before taking an action. No claim arising from the content of or relating to this document can be asserted against NAZALI.