Today, all employers who are experiencing difficulties because of Corona can make use of a relaxed and simplified procedure for temporary unemployment. This relaxed form of temporary unemployment was extended several times, but will come to a permanent end on August 31. Employers who are considered "hard hit" will, however, continue to be able to make use of the current relaxed procedure for the period from September 1 to December 31.
For those employers who are no longer eligible, a transitional regime has been provided by tinkering with the classic system of temporary unemployment for economic reasons. Finally, the unchanged traditional procedures for temporary unemployment due to force majeure and economic reasons remain in force.
Soon there will be no less than five different regimes of temporary unemployment in effect simultaneously. We are happy to list them for you.
1. Temporary unemployment due to force majeure for hard-hit sectors
Companies belonging to a sector still affected by the Corona virus and the federal government's (closure) measures will continue to be able to benefit from the current relaxed regime, provided a dossier is reported to the NEO.
As of today, a list of hard-hit sectors has not yet been compiled by the Minister of Labor, but it is widely expected that businesses in the hospitality, travel and events sectors will fall under this regime.
2. Temporary unemployment due to force majeure for hard-hit firms
Also, those companies that have used temporary unemployment for at least 20% of the total number of working days during the second quarter of 2020 will continue to be able to use the current relaxed regime, provided that a prior approval of the NEO is obtained.
Please note that obtaining approval can take up to two weeks. So be sure to apply for this approval in good time!
3. Relaxed temporary unemployment for economic reasons
Employers who cannot make use of the above schemes, because they both do not belong to an affected sector and have not taken up 20% temporary unemployment in the second quarter, can make use of a relaxed form of temporary unemployment for economic reasons.
Employers wishing to introduce this scheme for white-collar workers in their company must have experienced a loss of sales or production of at least 10% in the previous quarter, and this in relation to the corresponding quarter in 2019. In addition, one must conclude a company CLA or draw up a business plan. Finally, there is an obligation to provide two training days per month. These additional conditions and formalities do not apply to blue-collar workers.
The relaxation consists of allowing this form of economic unemployment to be absorbed more intensively than traditional economic unemployment:
- For workers: a scheme of full suspension for up to 8 weeks (instead of 4 weeks); a scheme of part-time suspension for up to 18 weeks (instead of 3 months).
- For white-collar workers: a scheme of full suspension for up to 24 weeks (instead of 16 weeks), or a scheme of partial work for 34 weeks (instead of 26 weeks).
4. Classic temporary unemployment due to economic reasons
Employers who cannot make use of the relaxed temporary unemployment for the white-collar employees in their company because, for example, they have not experienced a decrease in turnover or production compared to the previous year, may possibly make use of the classic temporary unemployment for economic reasons, more specifically in the event that they:
- Either experienced a decrease in orders during last quarter of at least 10% compared to the corresponding quarter of one of the past two calendar years;
- Either in the most recent quarter before the application, placed the workers in the company on temporary unemployment for at least 10% of the total working time of that quarter
5. Classic temporary unemployment due to force majeure
Employers who cannot make use of the relaxed unemployment on grounds of force majeure for hard-hit sectors or hard-hit companies can still make use of the traditional temporary unemployment on grounds of force majeure for employees who are in a situation of force majeure and therefore cannot come to work. A force majeure situation is understood to mean, among other things, mandatory quarantine, being detained abroad, etc.
If you have any questions, please do not hesitate to contact your client manager or our subsidy expert directly. You can reach us at any time on 051 26 82 68 or by e-mail at email@example.com.