Netherlands: Fifth Application Period for NOW 3.3 is Open to Employers
The fifth application period for NOW 3.3 was opened on 6 May 2021. From 6 May to 30 June 2021 it is possible to apply for an advance reimbursement of wage costs for the period of April to June 2021. The reimbursement is subject to a number of conditions. The conditions and the calculation of the reimbursement are described in our blog.
Purpose of the NOW 3.0
The NOW 3.0 is intended for employers who have suffered substantial loss of turnover as a result of the coronavirus and government measures. The employer can apply to the UWV for a reimbursement of wage costs of the employee(s). This allows employees with permanent and flexible contracts to continue to be paid.
Conditions for NOW 3.3
In the fifth application period of the NOW, employers are still being supported in their wage costs. The employer is entitled to a reimbursement of wage costs if there is a minimum of 20% loss in turnover in three consecutive months between 1 April and 31 August 2021.
If the employer did not receive a reimbursement in the fourth application period (the NOW 3.2), the employer can choose over which period the loss of turnover is calculated. If the employer did receive a reimbursement in the fourth application period, then the three months of the fifth application period must correspond to the three months over which the loss of turnover was calculated for the fourth application period.
Calculation of the reimbursement
Depending on the loss of turnover, the UWV will reimburse up to 85% of the wage costs for the period April, May and June 2021. The UWV bases the wage costs on the amount of wage costs in June 2020 and the loss of turnover is calculated based on the amount of turnover in 2019.
The employer first receives an advance payment from the UWV. This is up to a maximum of 80% of the reimbursement, depending on the estimated loss of turnover by the employer. This amount is paid in three instalments over a period of three months.
Obligations of the employer
If the employer receives NOW 3.3, a number of obligations apply:
- The employees must continue to be paid as much as possible during the period that the employer receives NOW;
- The wage costs may decrease by a maximum of 10% compared to the period of June 2020, without this affecting the final wage costs;
- When the employee is dismissed or his/her contract ends, the employer has an (best-effort) obligation to guide the employee to other work;
- When requesting for an economic dismissal (in Dutch: bedrijfseconomisch ontslag), the employer is obliged to report this to the UWV Telephone NOW.