Information contained in this publication is intended for informational purposes only and does not constitute legal advice or opinion, nor is it a substitute for the professional judgment of an attorney.
Browse through brief employment and labor law updates from around the globe. Contact a Littler attorney for more information or view our global locations.
Download full Q3 2020 Global Guide Quarterly
NOW 3.0: Applications and Compensation
New Legislation Enacted
Author: Dennis Veldhuizen, Partner – Clint | Littler
The Emergency Fund Bridging Employment (known in Dutch as NOW) has been extended for the third time (NOW 3.0). Under the iterations of the NOW program, companies with a substantial revenue loss due to the COVID-19 pandemic can receive compensation for wage costs. NOW 3.0 covers three phases of three months between October 2020 and July 2021 and for each phase employers can decide whether to apply for compensation. With each phase, the government will gradually reduce the support: starting with coverage of wage costs at 80% (in case of 100% revenue loss) in the first phase; 70% in the second phase; and 60% in the third phase. Currently, employers are eligible for NOW when their expected revenue loss is at least 20%, but this threshold will be raised to 30% as of January 2021. Furthermore, employers continue to have an obligation to do their best to maintain employment (e.g., through re-training), but they will be able to reduce their wage cost to a certain extent without it affecting compensation.
Additional Birth Leave, Effective July 1, 2020
New Legislation Enacted
Author: Dennis Veldhuizen, Partner – Clint | Littler
As of January 1, 2020, partners of women who gave birth are entitled to birth leave of one time the weekly working hours, during which the employer must continue full payment of the salary. As of July 1, 2020, partners are entitled to an additional birth leave of five times the weekly working hours. During this leave, the partner is entitled to a benefit of the Dutch Employee Insurance Agency (UWV) of 70% of their wage. The employer will request the benefit and receive it from the agency, after which the employer will pay it to the employee. The additional birth leave can be taken only once the “standard” birth leave is taken, but must be taken within six months after the birth.
Increase to Statutory Minimum Wage, Effective July 1, 2020
New Legislation Enacted
Author: Dennis Veldhuizen, Partner – Clint | Littler
Twice a year, in January and July, the government adjusts the Dutch statutory minimum wage. As of July 1, 2020, the monthly minimum wage increased from 1,653.60 EUR to 1,680 EUR. The daily and weekly wages were adjusted, accordingly.
