With effect from 5 May, the NOW 5.0 window has opened. Until Wednesday 30 June, employers can apply to the UWV for a grant to cover wage costs for the period April, May and June of 2021.For now, this is the last NOW period to be opened. With the prospect of further relaxations coupled with the increased vaccination rate, the society is slowly reopening. We must therefore assume at this time that this is the last NOW scheme.
The NOW 5 scheme has been open for longer than usual. This extended period allows business owners to make a more accurate assessment of their loss of turnover and whether the grant is actually necessary. For the time being, the NOW 5.0 scheme is being used less than previous NOW schemes.
The eligibility criteria for NOW 5.0 remain unchanged. This means that there must be a loss of turnover of at least 20% over the period April, May and June 2021 to receive a grant of (up to) 85% of wage costs. Once again, an advance payment of 80% will be paid out in three instalments. A final settlement will take place once the final assessment has been made. Please note that the works council must also be informed about the NOW application.
Unlike NOW 1.0 and 2.0, under NOW (3.0, 4.0 and 5.0) a limited reduction in the wage bill is permitted without this leading to additional reductions in the subsidy. A reduction in the wage bill of up to 10 per cent is permitted compared with the wage bill for June 2020 (the reference month). Please note that when determining the NOW allowance, the UWV checks whether the employer contacted the UWV in the event of redundancies on commercial grounds. If not, the employer will face a 5% reduction in the subsidy. Naturally, in the event of collective redundancies, the employer must also comply with the rules set out in the Collective Redundancy Notification Act (WMCO).
To gain a clear understanding of the consequences of a reduction in the wage bill and/or a change in the rate of turnover decline, the UWV has made a simulation tool available on its website. This tool illustrates the impact of changed circumstances on the subsidy.
In addition to the telephone contact with the UWV in case of business economic dismissal, under the NOW 5, there is also the effort obligation to encourage employees to request development advice or take training. This applies from the moment work threatens to disappear. The effort obligation is broad and applies to all employees whose contract expires and/or who leave employment. How exactly the employer shapes this effort obligation is up to the employer, but they can, for instance, make time or resources, for instance from O&O funds, available for this purpose. In support, the central government has made funds available for a crisis package ' NL learns by'.
The application can be made at the UWV counter. For more information and help with the application, our NOW specialists have prepared a checklist.
Do you disagree with the UWV's decision? Then we advise you to file an objection against the decision. In the objection procedure, the UWV will have more room to apply customisation. The NOW specialists at Marxman Advocaten will be happy to assist you in this regard.