17 Sep Corona special | NOW 3
The extension of the Temporary Emergency Bridging Measure for Work Preservation (NOW 3) has been announced. The exact text of the regulation under NOW 3 has yet to be published by the ministry, but the outline of the regulation has already been published.
NOW 3 will enter into force on 1 October 2020 for a duration of 9 months, spread over 3 periods with adapted conditions. The aim of the scheme remains to support work and income, but it also provides space for companies and employees to adapt to the current economic situation. However, it is clear that in each of the three periods, the scheme is becoming more and more austere.
NOW 3 outlines
- The minimum loss of turnover to qualify for the NOW scheme will increase from 20% to 30% from the second period onwards.
- There will be a gradual reduction in the compensation percentages per period: from 80%, to 70% to 60%.
- Unlike under NOW 1 and 2, it is possible to gradually reduce the wage bill by 10%, 15% and 20% respectively, without this being at the expense of the subsidy.
- The ‘reorganization fine’ will be abolished.
- The effort obligation aimed at training and the ban on paying dividends and bonuses, as it applied under NOW 2, will remain under NOW 3. Although the explanation is not yet concrete on this point, it has been indicated that the system remains the same. As a result, it will probably not be possible to pay dividends or bonuses until after the annual accounts for 2021 (usually early 2022) have been approved.
- As under NOW 1 and NOW 2, the employer will initially receive an advance payment of 80%.
- The lump-sum surcharge for employer expenses remains 40%.
Overview of the different conditions per period
* 10% of the compensation over period 1 should be used for training / work to work. This part of the allowance will not be paid to the employer, so that the employer effectively receives a maximum of 80%.
Application NOW 3
NOW 3 / period 1 can be applied for from 16 November next (target date UWV) with retroactive effect to 1 October 2020. For participation in NOW 3 it does not matter whether or not a company has previously participated in the NOW schemes. It is also possible to apply for NOW 3 per period.