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What happens to the staff if you have to close due to corona?

If you have insufficient work due to unfavorable circumstances, you remain, in principle, obliged to continue paying wages. You can aim for temporary solutions, a reduction in hours or, if the situation is structural, dismissal on economic grounds via...

Published on March 30, 2020 by MKBjuristen.nl
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If you have insufficient work due to unfavorable circumstances, you remain, in principle, obliged to continue paying wages. You can aim for temporary solutions, a reduction in hours, or, if the situation is structural, dismissal on economic grounds via the UWV. In the event of a crisis, temporary support measures may also apply.

Continued payment of wages remains the starting point

Less work does not automatically mean less pay. For employees with a wage continuation obligation, you remain liable for wages, even if there is temporarily no work. In principle, that risk lies with you as the employer.

Temporary solutions

In the event of a temporary setback, you could consider taking leave, adjusting schedules, or making agreements regarding a temporary reduction in working hours. Furthermore, in the event of a large-scale crisis, the government may open up temporary support or compensation schemes; check which scheme applies at that time.

Structural reduction in work: redundancy

If the downturn is permanent, dismissal for economic reasons may be applicable. To do so, you must request permission from the UWV and substantiate, among other things, the economic necessity and the correct order of dismissal (mirroring). In principle, a transition payment is then due.

Flex workers and zero-hour contracts

For personnel without an obligation to continue paying wages, such as certain on-call and zero-hour contracts, the options are different. Do pay attention to the on-call rules and the right to wages that may arise from previous call-ups or the law.

Frequently Asked Questions

Do I have to continue paying wages if there is no work?

For personnel with an obligation to continue paying wages, in principle yes; the risk of insufficient work lies with you.

Can I dismiss staff due to insufficient work?

In the event of a structural downturn via dismissal for economic reasons with the permission of the UWV, subject to the principle of mirroring and, in principle, a transition payment.

Are there any support measures?

In the event of a major crisis, the government may open up temporary schemes. Which schemes apply varies by period; check the current schemes.

Manage personnel costs and dismissals properly?

Our legal experts advise on hour reduction and dismissal, and draft settlement agreements . View our employment lawteam or schedule a free consultation.

Please note: an article provides general information, but your legal situation may turn out differently.

A contract, conflict, or legal risk must always be assessed based on the facts, documents, evidentiary position, and interests. Are you in doubt? Have your situation assessed before you act.

Legal question regarding this article?

A blog provides explanation, but your situation often requires a concrete legal choice. MKB Juristen helps entrepreneurs with contracts, terms and conditions, GDPR documents, employment documents, disputes, and customized legal solutions.

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SME Lawyers at the Chamber of Commerce Source: Chamber of Commerce 2019
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