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Applying for a dismissal order because of corona? Make sure your administration is in order

Applying for a dismissal order because of corona? Make sure your administration is in order

The corona virus has affected many companies already. To help employers through the crisis who can offer their employees less work, the Temporary Emergency Bridging Measure (Noodmaatregel Overbrugging voor Werkgelegenheid or NOW) has been established. If this arrangement offers insufficient support in your situation and you need to apply for a dismissal order for one or more of your employees, it is important that your administration is in order. This page will explain why.

If you need to let your employees go due to the corona crisis, you will have to apply for a dismissal order from the UWV for business-economic reasons. This is subject to the normal rules, such as the age bracket principle. Additionally, you will have to demonstrate that the amount of work has decreased and that you expect that this situation will not change within a period of 26 weeks.

What you must be able to demonstrate

To be able to demonstrate that the redundancy of jobs is permanent (for a period of at least 26 weeks), it is important to update your administration especially now. This will allow for swift action if necessary. On 3 April 2020, the UWV announced that, if you file an application for a dismissal order on business-economic grounds, you, as an employer, are required to demonstrate that:

  • the dismissal is necessary; and
  • the use of the NOW arrangement is not an appropriate solution.

For example, your company will have to demonstrate that the turnover decrease will last for a prolonged period of time and that it is really necessary to reduce the number of employees to cut costs. The temporary contribution towards the labour costs under the NOW is not enough to get through the crisis. However, the UWV will be reserved when verifying if this is true.

Keep your files in order

Additionally, it would be smart to have a file ready before the holiday period starts. If your employee is absent for more than three consecutive days in the two months after you file the dismissal order application, e.g. because of a holiday, this may be a circumstance and reason that justifies an extension of the response time.

What if the application for the NOW arrangement is filed at the same time as an application for a dismissal order from the UWV for business-economic reasons?

It is not permitted under the current NOW arrangement to apply for a dismissal order for business-economic reasons during the period for which you receive the benefit. If you do so, the benefit will be reduced.

From 1 June 2020, however, a new support package will be introduced. Minister Koolmees has promised that it will be possible for employers who use the NOW arrangement to dismiss employees without consequences. This means that, from 1 June 2020, a combination of the NOW arrangement and dismissal for business-economic reasons should be possible.  

Do you have any questions?

Contact D.H.L. (Danique) Burgerjon, Junior lawyer immediately at HLB Van Daal in Schijndel.

Send an email or call +31 (0)73 547 49 47
D.H.L. (Danique) Burgerjon