Dutch Government Supports Reduced Work Time

April 1, 2009
Companies forced to reduce work hours were able to apply for reimbursement to replace lost salaries.

A stimulus of sorts known as Arbeidstijdverkorting (ATV) offered assistance to companies in The Netherlands forced to reduce work hours of their staff. More than 500 companies had applied by the March 21st deadline to receive part of the €200 million budgeted by the government to replace lost wages.

Companies had to report a loss of at least 30% (compared with the prior year) for the two months prior to applying for ATV funds. Companies applying for the funds also had to assist workers with temporary schooling or job placement. The affected employees had to have their working time reduced for a minimum of six weeks. The percentage of employees affected also had to be equal to the percentage of the loss in turnover. The employees remain on the payroll, and the government pays the unemployment subsidy directly to the company.