Since 6 April 2020 employers can receive compensation for wage costs on the basis of the ‘Temporary emergency measure transitional regulation for preservation of employment (NOW ). In previous articles we discussed the contents of the NOW, some important adjustments of the regulation and the widening of the NOW for groups of companies.
Last week an extension of the NOW-regulation was announced. Employers will soon be able to also apply for compensation for wage costs for the period June through August. Simultaneously with the extension, in a letter to the Lower House of Parliament Minister Koolmees has announced some adjustments to the current NOW-regulation (the first tranche). The announced adjustment of the NOW-regulation will make the regulation accessible to more companies. In addition, it is laid down when exactly an audit's report is required.
Adjustment of the current NOW-regulation
ractice has shown that there are companies that fall between ‘two stools’ when a subsidy under the NOW-regulation is granted. This is why the current NOW-regulation is ( again) adjusted on a few points:
- In deviation from the original regulation, an increase in the wage bill in March through May 2020 can be included in the amount of the subsidy. The wage bill for this period must then be higher than three times the wage bill for January. This is advantageous for employers whose January wage bill was not representative thereof, such as seasonal companies. This adjustment is only relevant for the determination of the definitive subsidy. The advance payment remains unchanged. It is therefore not necessary to apply for a change in this respect.
- Some employers pay out the 13th month in January. As a result, the wage bill in January is not representative. The Minister has promised that the UWV will, where possible, filter out the 13th month from the wage bill.
- A transfer of undertaking may be taken into account when determining the loss of turnover. An undertaking which has acquired another undertaking may base its reference turnover on the turnover in the calendar month following the transfer up to and including February 2020 (converted to 3 months), instead of the turnover in 2019 divided by 4. The adjusted wage and salary bill may also offer a solution after a transfer of undertaking.
- As a result of these changes, some companies may still be eligible for a NOW-subsidy for the period March through May 2020. The application period during which the advance on the subsidy can be requested is therefore extended up to and including 5 June 2020. Companies whose applications have previously been refused, will be approached by the UWV. The final determination of the subsidy can be applied for as of 7 September 2020.
Auditor's report
The Minister has made it known when an auditor's report is required for the subsidy to be determined:
- An auditor's report will be obligatory for employers who have received an advance of €100,000 or more or will receive a final subsidy of €125,000 or more. The employer who has received a lower advance must estimate for himself whether the subsidy will be set at €125,000 or more. An on-line calculation tool will be made available for this purpose.
- Requests for subsidies to be determined which do not require an auditor's report will be audited on a random basis.
- In the event of an application for a determination of a subsidy with an advance of more than €20,000 or a determination amount of more than €25,000, a statement from a third party confirming the decrease in turnover, such as an administrative office, financial service provider or branch organisation, is required.
Publication by the UWV
The NOW-regulation provides that applicants for the regulation, including advances granted and subsidies established, may be made public. The UWV will publish these data on the website from the end of June.
Do you have any questions about the NOW-regulation and/or specifically about the above changes? Please feel free to contact the Employment Law team.
