Draft Bill for Employee Retention in Crisis (Wpc) Submitted for Consultation

The need for Sustainable Crisis Wage Support

A permanent scheme for wage support during crises has been long anticipated. The goal is to preserve jobs during short, unexpected crises outside normal business risks. Job losses affect employees, employers, and society: workers lose income, businesses face rehiring costs, and governments bear unemployment benefits costs.

The COVID-19 crisis highlighted the Wtv’s inadequacy and revealed the NOW as a temporary fix, unsuitable for long-term application. The Wpc aims to create a sustainable, structural solution.

Purpose of the Wpc

The Wpc seeks to help businesses retain employees and prevent layoffs during crises that fall outside normal entrepreneurial risks.

• For employers: The Wpc provides flexibility to maintain operations and preserve employee expertise.
• For employees: It increases job security and maintains income levels during crises.

Key Features of the Wpc

Under the Wpc, companies experiencing a crisis that reduces work by 20% or more over two months can receive support for up to six months. Employers can choose from three options:

1. Reassignment:
   Employers can temporarily reassign employees to other roles while continuing to pay full wages.
2. Reduced Wages:
   Employers may reduce wages by 10% for unworked hours, applying for a subsidy to cover 65% of those costs through the UWV.
3. Combination:
   Employers can combine reassignment and reduced hours, but both options cannot be applied to the same hours.

Next Steps

The public consultation is open until June 25, 2024, allowing individuals and organizations to provide feedback on the draft bill.