Crisis package to be implemented more strictly

16th July 2009, Comments 0 comments

The government is going to enforce stricter regulations after it was discovered companies who applied for part-time unemployment benefit payments have been abusing the system.

The Netherlands – Dutch Social Affairs Minister Piet Hein Donner is implementing stricter regulations for the use of part-time unemployment benefit payments as of 20 July.

The stricter rules followed an evaluation by the organisation charged with administering unemployment and various benefits, UWV, of how the special scheme operated during its first three months.

In March, unemployment benefits introduced by the government allowed companies to use specially earmarked funds from the unemployment insurance ‘pot’ to fund temporary reductions in working hours. This scheme allows employees to stay on the payroll in anticipation of a pick up in orders and output later on.

However, a review by UWV shows that many companies have been abusing the scheme.

Some businesses who claim special unemployment funds have their staff working normal hours while others – mainly smaller firms - used the benefits to hire ‘cheaper’ workers from abroad illegally.

Such businesses will now be required to pay back the money they have received benefit and may also faces fines.

In the coming month, the UWV will also monitor the scheme closely.

Radio Netherlands / Expatica

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