24 March 2020 | Because of the corona virus disease (COVID-19) pandemic, the Dutch government has announced a package of measures to protect jobs and income. The measures ensure that companies can continue to pay their staff, bridge the gap for self-employed workers, and ensure that cash can remain in the company through soft tax regimes, compensation and additional credit facilities.
Temporary Measure Bridging for Work Preservation (NOW)
Of all support regulations due to the coronavirus outbreak, most attention is paid to the Temporary Measure Bridging for Work Preservation (NOW). On the basis of the new regulation, employers can apply for a 3-months’ contribution to wage costs from the UWV if they expect a loss of turnover of at least 20%.
The allowance for labor costs amounts to a maximum of 90% of the wage costs. This means that an employer is not fully compensated, but also keeps its own responsibility. The 3-months’ period can be extended once for another period of 3 months.
Small and medium businesses that have to close doors because of the government measures combatting COVID-19 can apply for an additional one-time allowance of € 4,000.
VESPER Advocaten LLP is happy to support and facilitate entrepreneurs, free of charge, in applying for these allowances or otherwise with regard to the package of emergency measures. Should you have any question about the NOW, please contact our COVID-19 Help Desk.*
UPDATE (2 April 2020): the NOW has been published and studied by us. In close collaboration with Aclara Legal Design we made an insightful infographic to help you getting started (available in Dutch language only).
Income support for self-employed persons
In addition, freelancers can receive a supplement for living for a period of three months if they have worked as freelancer for at least 1255 hours per year. This supplements the income to the social minimum (and does not have to be repaid. Flexible conditions apply: no partner and equity check, no viability check; no repayment obligation.
The aim is to provide income support for livelihood within 4 weeks for a maximum period of 3 months.
Also, a business loan can be requested for a maximum of € 10.517. The interest payable on the loan is not yet disclosed but it will not be high.
Should you have any question about this measure, please contact our COVID-19 Help Desk.*
* Our COVID-19 Help Desk has been set up as a temporary, free-of-charge service to businesses in the Netherlands, solely intended to give hands-on support in navigating certain unprecedented issues, under extraordinary circumstances due to the COVID-19 pandemic. In no event will VESPER Advocaten LLP, its partners, officers or employees be liable to you or anyone else for any decision made or action taken in reliance on the contents of this website, the support of our COVID–19 Help Desk, the use of any documents made available on our website or sent by our COVID-19 Help Desk or for any consequential, special or similar damages, even if advised of the possibility of such damages. VESPER Advocaten LLP has a policy of entering into attorney-client relationships with its clients only in accordance with certain procedures, which include executing an engagement letter and addressing professional responsibility conflicts, as required by the Dutch Bar Association. You agree that your access to our COVID-19 Help Desk, the transmission of e-mails to and from our COVID-19 Help Desk and the use of any documents attached thereto or made available on our website, do not create an attorney-client relationship between you and VESPER Advocaten LLP.