On 17 March 2020, the Dutch government announced that exceptional economic measures must be taken in relation to the Coronavirus Disease (COVID-19) crisis. Part of the measures entail the withdrawal of the Reduction of Working Hours Scheme (werktijdverkortingsregeling). Under the Reduction of Working Hours Scheme, it was possible for employers to apply for a permit under which it could temporarily apply for unemployment benefits for its employees under the Unemployment Insurance Act (Werkeloosheidswet) to prevent (collective) dismissals. The Reduction of Working Hours Scheme has been declared not to apply to the current situation and an Emergency Bridge Measure for Conservation of Work (Tijdelijke Noodmaatregel Overbrugging voor Werkbehoud) has been instated (the Emergency Measure).

Applications under the Reduction of Working Hours Scheme are no longer possible. Applications that have already been submitted will be processed under the Emergency Measure and additional information will be requested from employers. The Dutch government is yet to announce what this request for additional information will entail, but in any event the employer will have to provide financial information to determine the amount of compensation.

Click here to read the full GT Alert, “Coronavirus Disease 2019 (COVID-19) – Dutch Government Issues Emergency Measures for Employers and Entrepreneurs.”

Click here to read the full GT Alert in Dutch, “Employment en Tax update: Corona (COVID-19) – Update noodmaatregelen overheid voor werkgevers en ondernemers.”