Regulation for Temporary subsidy scheme for compensation of labor costs in connection with the coronavirus (the NOW-Regulation) was determined on March 31, 2020. This will take effect at the time of publication in the government gazette. The UWV (Social Security İnstituion) is responsible for the implementation of this regulation. The UWV wants to enable the submission of the applications for the NOW-regulation as of 6 April 2020.
The goal of NOW
The purpose of this regulation is to allow employers to meet the payment of wages if there is an acute drop in turnover of at least 20% over a three-month period, due to a decrease in activity caused by extraordinary circumstances that cannot reasonably be counted as normal business risk, so that they can keep employees employed for the hours they worked before this decline occurred.
Conditions for the NOW
To be eligible for the NOW-regulation, the employer must meet the following conditions:
• an employer must work for a consecutive period of three calendar months;
• in the period from 1 March to 31 July 2020;
• expects to experience a drop in sales of at least 20%;
• grant a subsidy per wage tax number on the wage bill in the period from 1 March to 31 May 2020.
Grounds for refusal
The subsidy is refused if or insofar as:
a. it is not or insufficiently plausible that the drop in turnover of the relevant employer will be at least 20%;
b. the account number specified in the application does not correspond to the payroll tax number stated in the application and the associated account details;
c. no wage data are available in the policy administration for the tax periods;
d. otherwise the application does not meet the requirements of these regulations.
Application for a subsidy grant
The application can be submitted by the employer using a form made available for this purpose at the UWV from 14 April 2020 or an earlier time that is announced via www.uwv.nl. The UWV has declared that it wants to make it possible to submit the application for the employer from 6 April 2020.
Granting of a subsidy
The minister decides no later than 13 weeks after receipt of the complete application for a subsidy. The amount of subsidy depends on the drop in turnover. The maximum subsidy is 90% of the drop in turnover.
Deposit
An advance may be granted to the employer in the decision to grant a subsidy. The amount of the advance is 80% of the amount of the grant and can be paid in 3 installments.
Suspension of payment
Payment to the employer can be suspended if:
1. there is a serious suspicion that the conditions or obligations are not being met;
2. if the employer report gives cause to do so.
Employer's obligations:
1. The employer is obliged to keep the wage bill the same as much as possible;
2. After March 18, 2020, the employer will not request permission to terminate the employment contract during the period for which the subsidy has been granted;
3. The employer is obliged to use the subsidy exclusively for the payment of labor costs;
4. The employer is obliged to inform the employees about the granting of subsidies;
5. The employer must keep all information that is important for the determination of the subsidy and, if necessary, access it for a period of five years after the date of determination of the subsidy;
6. The employer submits the payroll tax return under the Wages and Salaries Tax Act 1964 at the prescribed times;
7. The employer will notify the minister immediately and in writing if other circumstances arise that may be relevant for a decision to change, withdraw or determine the subsidy;
8. After the period for which the subsidy has been granted, the employer will submit a definitive statement of the decrease in turnover, together with an auditor's report.
9. The employer to whom a wage cost subsidy has been granted on the basis of the Participation Act will inform the Municipal Executive that the subsidy has been granted under this regulation.
10. The employer is obliged to provide information, data and documents to an investigation initiated on behalf of or by the Minister within 5 years after the subsidy has been determined.
Granting of subsidy
Within 24 weeks after the end of the consecutive three-month period, the employer will apply for the subsidy to be determined by means of a form made available for this purpose.
Reclaiming of awarded subsidy
The advance provided can be fully or partially reclaimed from the subsidy recipient if it was wrongly granted or for an excessive amount or if the obligations were not met.
Entry into force and expiry date of the NOW-regulation
This regulation comes into effect on the day after the date of issue of the Government Gazette in which the regulation is published. This arrangement will expire on August 1, 2021.