A letter sent on 28 May 2020 to the Lower House indicates that the government has further consulted with employer and employee organizations in response to the “emergency package 2.0” and this has resulted in a number of additional agreements about this emergency package. The government is expected to announce more details. Certain important additional agreements are listed below.
Earlier in May 2020, the government proposed an extension and expansion of the economic measures as a result of the coronavirus (COVID-19) pandemic in a “jobs and economy emergency package.”
Read a May 2020 report prepared by the KPMG member firm in the Netherlands.
According to the 28 May 2020 letter, the government will extend the period for emergency package 2.0 by a month—until October 1, 2020—and this would apply with respect to the following measures in the package:
The additional, expanded or more accessible loans and guarantees to small and medium-sized enterprises in “emergency package 1.0”—including the government-guaranteed scheme for loans to small and medium-sized enterprises (Borgstelling MKB-kredieten—BMKB), the business loan guarantee scheme (Garantie Ondernemingsfinanciering—GO) and the small corona loans (Klein Krediet Corona—KKC)—would also continue for a longer period of time.
NOW 2.0 is to include a provision that could reduce the subsidy if redundancy on economic grounds is applied for during the subsidy period. Under NOW 1.0, a reduction of 150% of the payroll of the relevant employees applies, although on 20 May 2020, it was announced that under NOW 2.0, the reduction would be 100%.
The letter dated 28 May 2020 states that if 20 or more employees are made redundant on economic grounds and the Collective Redundancy Notification Act (Wet Melding Collectief Ontslag—WMCO) applies, the final NOW subsidy would, in principle, be reduced by another 5%. This reduction, which would thus apply in addition to the above reduction of 100%, would not apply if: (1) the employer and the relevant employee representative body reach agreement on the redundancy application; or (2) these parties request mediation by a committee to be appointed by the Labor Foundation (Stichting van de Arbeid).
The maximum amount for the TVL would be increased from €20,000 for three months to €50,000 for four months. This takes into account the fact that the TVL is included as turnover for the purposes of the NOW. Applications for the TVL can be filed during June 2020.
The government will examine whether companies in capital-intensive sectors with high overhead that are still experiencing a very sharp decline in turnover after 1 October 2020 and whose future is uncertain as a result of the government’s corona crisis measures, can receive government aid.
The second tranche of the COL (a measure to improve the liquidity position of innovative companies) will be increased from €150 million (as announced on 20 May 2020) to €200 million.
Note the NOW is administered by the Dutch Employee Agency (Uitvoeringsinstituut Werknemersverzekeringen—UWV), the TOZO by the municipality in which a business is located and the TVL—just like the TOGS—by the Netherlands Enterprise Agency (Rijksdienst voor Ondernemend Nederland—RVO).
Read a May 2020 report prepared by the KPMG member firm in the Netherlands
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