Bill for Employee Retention during Crisis to the Council of State

Minister Paul of Social Affairs and Employment: “When a crisis strikes, such as a war or pandemic, companies must be able to act. With this law, employers gain opportunities to retain jobs and keep businesses running. This way, we help employers, employees, and the economy move forward.”

In crisis situations, where there is an average of at least 20% less work over a period of 2 months, companies can use the instruments from the Employee Retention during Crisis Bill for a maximum of 6 months. The instruments include redeployment or reduced wage payment and wage subsidy.

In redeployment, a company can temporarily unilaterally change the duties of its staff, allowing employees to perform other suitable tasks. This way, employees can continue to work as much as possible. Employers must continue to pay their staff 100%.

Employers also have the option to pay their employees 10% less salary for the hours that cannot be worked due to the crisis. If an employer chooses this, they can subsequently apply for a wage subsidy from UWV. The company then receives a subsidy for 65% of the wage costs for the non-worked hours. The remaining wage costs (25%) are paid by the employer. This way, the government, employer, and employee contribute to getting through the crisis.

The bill is part of a broader package of reforms for the labor market and has been developed in consultation with employer and employee organizations. Based on, among other things, the results of the internet consultation and the implementation assessments, adjustments have been made to improve the feasibility of the bill.

It has been decided that the Minister of Social Affairs and Employment can establish a number of criteria during a major crisis, making it clear which companies are affected by a crisis. For example, determining postcodes after a flood. This way, UWV does not have to assess each company individually during a major crisis and can process applications in a timely manner.

Furthermore, an employer can appeal directly to the administrative court after a decision by UWV regarding the application. There is no need to first file an objection with UWV. This adjustment is also intended to provide quick clarity to employers in times of crisis.

For employees, nothing changes: the works council has a role before the employer can submit an application for the use of the instruments from the bill. Employees can approach the cantonal court if they disagree with redeployment or reduced wages. This way, the interests of employers and employees are safeguarded, and legal protection is provided.