Employment Law Podcast: Temporary Emergency Bridging Measure for Sustained Employment (NOW)

On 24 November 2020, the Dutch Upper House approved the COVID-19 Amendment Act, which seeks to amend the Temporary Act COVID-19. The act will enter into force shortly, most likely on 1 January 2021 at the latest. The act is of a temporary nature, and will remain in effect until 1 February 2021. However, it can be extended by consecutive two months' periods.

A short update further to my contribution 'The Ceberus Van Lanschot NPL Sage continued – Attorney General: Assignment of loans to a non-bank entity is allowed, but duties op care apply' on this topic of 9 June 2020 last.

The e-book International Pension Lawyer - Journal of the International Pension and Employee Benefits Lawyers Association talks about the effects of coronavirus disease (COVID-19) on pension arrangements in different countries.

Market parties with an interest in the Dutch non- and sub-performing loan market and their advisors have been awaiting the Dutch Supreme Court judgement in the latest episode of the Cerberus Van Lanschot saga for some time now. The questions put before the Dutch Supreme Court concerning the transferability of bank’s claims to non-banks and the duties of care imposed on sellers and buyers of such receivables are of interest to sellers and buyers of non- and sub-performing bank loans alike.

On 31 March 2020 the Dutch government provided further insight in the rules of the earlier announced Emergency Fund Bridging Employment, by making public the NOW (Noodmaatregel Overbrugging voor behoud van Werkgelegenheid). On 3 April and 25 May 2020 some amendments to the NOW were published. The NOW provides financial aid to companies suffering at least a 20% turnover loss during a chosen period of three months (March-May, April-June or May-July) in the form of a substantial contribution towards the wage costs during the months March, April and May. Applications for advance payments can be made with the Dutch Employee Insurance Agency (UWV). Companies can make requests under the NOW from 6 April 2020. Applications can be made at the latest on 31 May 2020. The NOW replaces the Reduced Working Time scheme, which was withdrawn in March. Applications under the Reduced Working Time scheme which were submitted prior to the withdrawal will be converted into applications under the NOW.

The Minister of Social Affairs and Employment announced on 20 May 2020 that the Dutch Emergency Fund Bridging Employment, known as the NOW (Noodmaatregel overbrugging voor behoud van werkgelegenheid), will be extended to cover the months of June, July and August 2020 in the form of the NOW 2.0. The Minister also announced some amendments to the NOW 1.0, which covers the months of March, April and May 2020. Please find a link to our article on the NOW 1.0 here. Below you will find the relevant differences between the NOW 1.0 and the NOW 2.0 and the amendments to be made to the NOW 1.0.

Update 12 May The Dutch government has extended the existing guarantee schemes to provide credit support. In this article, we provide a description of the relevant schemes and how these have been extended in connection with the COVID-19 outbreak. Enterprises that are not eligible for the schemes discussed below may use any other government measure of to address liquidity issues, such as the Concession Measure on Preservation of Employment (Noodmaatregel Overbrugging voor Werkbehoud or NOW) and tax measures. Please see our Corona-hub for more information on liquidity issues, financing and restructuring.

Event after the balance sheet date For the financial statements 2019 closing on 31 December 2019, the financial impact of the Covid-19 outbreak is a 'post-balance sheet event'. For companies with a financial year that does not coincide with a calendar year, it goes without saying that the impact of Covid-19 will in any case have to be taken into account in the preparation of the annual accounts and the management report. It is up to the company to assess and process this.