From 26 July 2021 through 30 September 2021, it was possible to apply for NOW support for the sixth time, covering the months of July, August and September 2021.
To qualify for NOW 4, an average revenue loss of at least 20% must be shown over a consecutive three-month period, due to a reduction in business activity resulting from extraordinary circumstances outside the normal business risk. An employer expecting a revenue decline of at least 20% over a consecutive three-month period between 1 July 2021 and 30 November 2021 can receive a subsidy on the wage bill for the period from 1 July 2021 through 30 September 2021.
Unlike the previous NOW 3 fifth tranche, a cap is now placed on the revenue-loss percentage used in the calculation: a maximum of 80% revenue loss is applied. If a business expects, or has already suffered, more than 80% revenue loss, only 80% can be entered. The subsidy percentage remains 85%.
The reference month has changed compared to the NOW 3 fifth tranche. The subsidy amount is based on the wage bill for February 2021. At final assessment, the February 2021 wage bill is compared against the period from 1 July 2021 through 30 September 2021.
Employers receiving NOW subsidy must meet certain requirements. These are largely unchanged from previous NOW schemes. The only new condition concerns paying out bonuses and dividends. Employers are now required, before applying for NOW, to enter into an agreement with an employee representative body on how bonuses and dividends will be handled. The agreement must be concluded with at least one interested employee association. It must contain written arrangements on bonus and dividend policy. If the applicant has fewer than 20 employees, another representative body, such as a staff meeting or works council, suffices. No specific form is prescribed for the agreement.
Questions about the above?
Please contact one of Sørensen Advocaten’s employment lawyers. Call: +31 (0)10-2492444
