Corona virus and unemployment benefit
Recently, various entrepreneurs have expressed concerns about the financial health of their company due to the decline in turnover caused by the corona virus.
They are particularly concerned about their employee costs and contracts with employees.
If the employer does not see the opportunity to continue to pay personnel costs, it is possible for economic reasons to terminate the employment with the relevant staff with mutual consent.
If the employer can see the long-term continued employment, but hopes to temporarily reduce the cost of wages, it is possible to negotiate with the employee to reduce working hours, and because of the special circumstances of this virus, the employer can apply with the UWV for unemployment benefits (note: employer receives the benefit, but he needs to pay employee his regular salary) . Benefits are conditional and subject to a maximum of 6 weeks. After 6 weeks, it can be extended up to 18 weeks.
If you have any questions or need help when applying for this special unemployment benefit or when drafting a termination contract, you can contact our office contact.
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Posted on: 6 March 2020