Fort Advocaten | Law Firm in Amsterdam

Author: Elias van Kampen

  • Government measures in the Netherlands – update 31 March

    Government measures in the Netherlands – update 31 March

    The Dutch government has taken extensive measures to help businesses affected by the corona crisis.

    The measures now in place are:

    • The new temporary measure Temporary Emergency Bridging Measure for Sustained Employment (NOW, Noodfonds Overbrugging voor behoud van Werkgelegenheid) will provide financial help for employers to help pay their employees’ wages. The unemployment benefit during short-time working scheme has been cancelled. You can apply for the NOW scheme from Monday 6 April through 31 May 2020.

    • From 16 March 2020 to 1 April 2021, the SME credit guarantee (BMKB) scheme will be extended to help SMEs that are affected by the coronavirus secure bank guarantees and bridge financing. The extended scheme is referred to as BMKB-C.

    • For agricultural entrepreneurs, the equivalent of the BMKB-C is the Credit Guarantee scheme for Agriculture (BL-C).

    • The Business loan guarantee scheme (GO) has been extended.

    • Self-employed professionals will be able to apply for an extra, temporary benefit for self-employed professionals (Tozo) to bridge the loss of income from 1 March onwards, in the municipality where they live.

    • Entrepreneurs who have a loan from microcredit provider Qredits do not have to repay their loan for a period of 6 months. During this period, the interest will be reduced to 2%. The government supports Qredits with 6 million euros.

    • The €4,000 Compensation for entrepreneurs in affected sectors scheme (TOGS) is now open for entrepreneurs in a number of specific sectors who have been affected by the coronavirus measures. You can apply to the Netherlands Enterprise Agency (in Dutch). To find out if your business is eligible for the compensation, check the SBI code list (in Dutch). At the bottom of the page, there is a search tool (Zoektool SBI-codes) where you can enter your KVK number to find out your SBI code.

    • The Incentive scheme eHealth at Home (SET). has been extended to make it easier for healthcare organisations that want to offer their clients eHealth solutions (such as video calls) to invest in apps, software or hardware.
      N.B.: As of 27 March, this subsidy is temporarily unavailable due to the unexpectedly large number of applications.

    • The government will extend the export credit insurance facility. It will be possible for companies to get a short-term guarantee with a runtime of less than 2 years. Also, other conditions are being extended. Read the news article on Rijksoverheid.nl (in Dutch).

    • The Dutch Trade and Investment Fund (DTIF) will be extended to include pre-delivery advances.

    Tax options for entrepreneurs

    • You can apply for a payment extension of 3 months for all your income tax, corporate tax, payroll tax, and turnover tax (VAT) assessements at once, by filling out a special online form (in Dutch). You need a DigiD for this, but if you don’t have one, you can ask an employee or a financial advisor to login for you, using their DigiD. You will need to fill out your RSIN number or your citizen service number (BSN), so keep these ready. The Dutch Tax Administration will put on hold any measures in place to collect payment immediately upon reception of your request.

    • You can now also apply for payment extension of several other taxes and duties: excise duty, landlord levy, environmental taxes, insurance premium tax and betting and lottery tax.

    • You will not have to pay any fines for late payment.

    • The normal collection interest rate for paying after the payment term has passed has been decreased temporarily to nearly 0%. This applies to all tax debts. The tax interest rate will also temporarily be set to the lowest possible percentage for all entrepreneurs.

    • The obligation for employers under the new Balance Employment Market Act, to report permanent employees’ employment contracts before 1 April 2020, has been extended to 1 July 2020.

    • Under certain circumstances, you can apply for unblocking of your G-account. Read the conditions and find the form (in Dutch, under ‘Deblokkeren g-rekening’).

    • Read more about the Dutch Tax Administration measures to help entrepreneurs (in Dutch only).

    Travel restrictions

    As of 19 March, there are travel restrictions in place for travel into the Netherlands. The restrictions apply to all non-EEA travellers without valid residence permits or visa, and will be in place for at least 30 days. Read the article on The Netherlands and you for full details on who is and who is not allowed to travel into the Netherlands.

    Apply for a reduction of your provisionary assessment

    Do you expect lower profits due to the coronavirus, and are you currently paying a provisionary assessment for income tax or corporate income tax? You can change your provisionary assessment. If you want to change your income tax provisionary assessment, go to the online portal for individuals: MijnBelastingdienst (in Dutch); to change a corporate tax provisionary assessment go to the business portal: MijnBelastingdienst Zakelijk (in Dutch).

    Regional Water Authority tax

    Are you unable to pay the water authority tax in time? Most Regional Water Authorities allow you to apply for a temporary extension of payment. It has also been made easier to apply for a payment arrangement. See the article on Regional Water Authority tax for more information.

    General measures to protect the public health

    • All public events and meetings are cancelled until 1 June.

    • All public places, like museums, concert halls, theatres, bars, restaurants, coffee shops, and sports clubs, are closed until 28 April.

    • Personal care professionals, who cannot keep 6 feet distance from their clients, cannot execute their profession until 28 April.

    • Shops that cannot guarantee their clients and staff that they can keep 6 feet distance from each other, are closed until 28 April.

    • Schools and universities are closed, at least until the May vacation.

    • People in so-called ‘vital professions’ may still go to work. Special arrangements are made for the schooling and daycare needs of the children of people in so-called ‘crucial professions’ (in Dutch). Contact your municipality or safety region for information, or check the RIVM and Rijksoverheid pages.

    For any questions on above measures, please contact Elias van Kampen at elias.vankampen@actlegal-fort.com or +31 (0)20 664 5111

  • The Employment Bridging Emergency Fund in 10 points

    The Employment Bridging Emergency Fund in 10 points

    1. Introduction of the Employment Bridging Emergency Fund (NOW)

    [vcex_spacing size=”14px”]In light of the economic consequences of the coronavirus, the Employment Bridging Emergency Fund (Noodmaatregel Overbrugging voor Werkbehoud – NOW) has been introduced with immediate effect. The NOW provides for temporary wage cost subsidy for employers that are impacted by a drop in turnover. The NOW has retroactive effect from 1 March 2020.

    2. Withdrawal of short-time working scheme

    [vcex_spacing size=”38px”]The short-time working scheme (regeling werktijdverkorting – wtv) has been withdrawn with immediate effect. Applications already filed for the short-time working scheme will be handled as applications for the NOW.

    3. NOW conditions

    [vcex_spacing size=”40px”]Two conditions apply to the NOW: (i) you expect a drop in turnover of at least 20% as from 1 March 2020; and (ii) you will not lay off any staff on economic grounds during the period in which the NOW can be relied on.

    4. Duration of the NOW

    The NOW applies for a period of three months. One extension of a further three months is possible. Further conditions may be attached to that extension. It is not yet clear what exactly those conditions will be.

    5. Amount of the NOW

    The contribution amounts to 90% of the payroll total in the event of a drop in turnover of 100%. If the drop in turnover is lower, the contribution is determined pro rata to the drop in turnover. It is not yet clear exactly which remuneration components are counted in the payroll total.

    6. Flexible contracts

    Unlike in the short-time working scheme, flexible contracts, such as agency contracts and stand-by contracts, also fall within the scope of the NOW. That is of course favourable for sectors in which flexible contracts are frequently used, such as the hospitality industry.

    7. Advance

    The contribution under the NOW is awarded as an advance. The advance amounts to 80% of the expected contribution. If, for instance, a 50% drop in turnover is expected, the advance amounts to 36% of the payroll total. The exact drop in turnover is determined at a later time. A correction may be made when the final contribution is determined.

    8. Applying for the NOW

    Applications for the NOW must be filed with the UWV (Employee Insurance Agency). It is not yet possible to file an application. You will be informed as soon as that is possible. Applications in excess of an amount yet to be determined require an auditor’s report. If you have already filed an application for the short-time working scheme, you need not file a new application for the NOW.

    9. Consequences of the NOW for employees

    Employees are entitled to continued payment of their entire wages during the term of the NOW. Unlike the short-time working scheme, the NOW does not affect their unemployment benefits entitlement.

    10. Self-employed persons

    The NOW does not apply to self-employed persons. The Besluit bijstandverlening zelfstandigen (Social Assistance (Self-Employed Persons) Decree) applies to self-employed persons who are forced to cease their operations.

  • The ten most frequently asked employment law questions regarding the coronavirus

    The ten most frequently asked employment law questions regarding the coronavirus

    The coronavirus has the Netherlands and the rest of the world in its grip. As of March 12 2020, additional measures apply that are also relevant to employers. Since the number of infections in the Netherlands is rapidly increasing, we will answer the ten most frequently asked employment law questions regarding the coronavirus in this blog.

    1. Can employers force their employees to work from home?
      As of 12 March 2020, the authorities advise employees to work from home whenever possible. Employers may obligate their employers to do so in these circumstances. It must of course be possible for the employees in question to work from home. Also, the employer must ensure that the obligations under working conditions and working hours legislation are observed also at home. Employees who show any symptoms, such as a runny nose, coughing and fever, are required to stay at home.[vcex_spacing size=”20px”]
    2. What precautions must employers take against the coronavirus?
      Employers must protect the health and safety of their employees. Employers are therefore expected to protect their employees as far as possible against infection with the coronavirus. Employers will have to take precautions for that purpose. As of 12 March 2020, assemblies at work that are attended by more than 100 persons are no longer permitted. Other precautions may include distributing disinfecting hand gel to employees, giving hygiene instructions and advising employees against travelling to risk areas.[vcex_spacing size=”20px”]
    3. Can employers obligate employees to take leave?
      No, that is not possible. Employers cannot obligate employees to take leave.[vcex_spacing size=”20px”]
    4. Must employers continue to pay their employees’ salaries if they are required to remain in quarantine?
      Yes, in principle employers must continue to pay the salaries of employees who are required to remain in quarantine. If employees who cannot or may not work from home nevertheless stay at home because they are afraid of being infected with the coronavirus at work, the obligation to continue to pay their salaries does not apply.[vcex_spacing size=”20px”]
    5. May employers prohibit employees from travelling to risk areas in their private time?
      No, that is not possible in principle. Employers may of course inform employees in writing about risk areas and advise them not to travel there. They can state, for instance, that if employees nevertheless travel to a risk area, the consequences, if any, are at their risk.[vcex_spacing size=”20px”]
    6. May employers force employees to submit to a coronavirus test?
      No, only a company doctor may do so. The privacy rules continue to apply. The coronavirus has not changed them.[vcex_spacing size=”20px”]
    7.  Can employers get financial support to pay wages?
      With effect from 1 March 2020, Employers may apply for the new temporary Employment Bridging Emergency Fund  (Noodfonds Overbrugging Werkgelegenheid, or NOW), which provides for financial support for employers to pay their employees’ wages during the corona crisis. Companies that expect a turnover loss of at least 20% may claim a compensation for their wage costs for a period of 3 months. This 3 months’ period may be extended for another period of 3 months. Employers may claim a maximum of 90% of their wage bill, depending on how much turnover they  lost. In order to be eligible for this financial support, employers must promise that they will not dismiss employees for economic reasons during the period in which they receive the support.[vcex_spacing size=”20px”]
    8. Are employees entitled to leave if the schools of their children close due to the coronavirus?
      Yes, in that case employees are entitled to short-term emergency leave. Emergency leave applies to urgent, extraordinary and unforeseen circumstances. During that leave, employers are required to continue to pay the salaries of the employees in question. If a collective bargaining agreement applies, it may include different or additional provisions. Emergency leave may last from a few hours to a few days. It is therefore not a long-term solution.[vcex_spacing size=”20px”]
    9. May employees refuse to come to work for fear of the coronavirus?
      Employers may require of their employees that they work at the location agreed on in the employment contract, for instance. Employees may therefore not simply refuse to go to work for fear of the coronavirus. If employees nevertheless stay at home, that may constitute refusal to perform work. Refusal to perform work may be grounds for summary dismissal. That is of course otherwise if the employees are not allowed to come to work because they have symptoms.[vcex_spacing size=”20px”]
    10. May employees refuse to travel abroad to attend a business meeting?
      That depends on the travel advice issued by the Ministry of Foreign Affairs. Employers are required to make a careful decision in this case. In the case of a business trip to a red risk area, the Ministry of Foreign Affairs advises against travelling there. In the case of an orange risk area, the business trip must be essential.

    If you have any questions about the employment law consequences of the coronavirus, please contact our partner employment law Elias van Kampen at elias.vankampen@actlegal-fort.com.