News item | 6/30/2023 | 13:15
In the event of a crisis such as a flood, war or pandemic, it is important that companies can switch quickly and have certainty about the retention of personnel. To provide this certainty, Minister Van Gennip of Social Affairs and Employment is developing the Crisis Regulation for Personnel Retention. The measure was presented in April as part of the labor market package. In a letter to the House of Representatives, Minister Van Gennip describes the scheme.
The Crisis Regulation for Personnel Retention is intended for exceptional situations that fall outside the entrepreneurial risk. These are crises that entrepreneurs have no influence on and have not been able to prepare for.
Minister Van Gennip: “Suddenly you can work less or not at all. This is drastic for employers and employees. The corona crisis has made it clear to us that we must be well prepared. With this Crisis Regulation for Personnel Retention, we show that we have learned from this. It is one of the steps we are taking towards the labor market of the future. With the aim: more security for workers and agility for companies.”
NOW
At the moment, the Short-time Work scheme (Wtv) still applies for exceptional circumstances, but it was not sufficient during the pandemic. The Emergency Measure Bridging Employment (NOW), which applied at the time, is not targeted enough. That is why the coalition agreement focused on a more complete arrangement. The Personnel Retention Crisis Scheme is the implementation of the budget-neutral part-time unemployment benefit that was announced in the coalition agreement.
The scheme is clearly defined and suitable for both minor and major crisis situations. Companies can claim it for a maximum of six months if there is an average of at least twenty percent less work over two months. The current Wtv will expire.
Reassignment
In the event of a crisis, an employer has two options within the scheme: redeployment or compensation. In the event of reassignment, a company can temporarily unilaterally change the activities of staff by having their employees work in a different position or at a different location. This so that employees can continue to work as much as possible. Employers must then continue to pay their staff 100%.
Allowance
The second option is an allowance, so that an entrepreneur can continue to pay salary for the hours that expire. This means that a company can receive a financial contribution of sixty percent for wages for hours not worked, with a surcharge of 23.5 percent for employer costs such as employer premiums. The wage used for calculations is capped at the maximum daily wage. When using the allowance, a contribution is also requested from companies and their staff. In this way, employers, employees and the government bear the costs together.
The scheme is still being worked out in more detail and points may still be subject to change. The aim is for the draft bill to enter internet consultation at the end of this summer. The proposal is expected to go to the House of Representatives before mid-2024.