On 26 September 2025, the Dutch government submitted the Personnel Retention in Times of Crisis Act (Wet personeelsbehoud bij crisis) to the Council of State for review. The Act is intended to help employers retain staff during unexpected crises – such as pandemics, wars or natural disasters – so that layoffs can be prevented so far as possible.
The Act replaces the temporary coronavirus scheme (NOW) and modernises the Short-Time Work scheme. The law becomes active when a crisis is declared under the law or when the minister designates one. The scheme applies if an employer has, on average, at least 20% less work over a two‑month period. The Act can be used for a maximum of six months.
The law offers two instruments:
- Temporary reassignment: employees can be temporarily assigned other suitable work, with full wage payment. Travel time counts as working time and additional travel costs are reimbursed.
- Partial wage payment with wage subsidy: employers may pay 90% of wages for hours not worked (not below minimum wage). The Labour Office then reimburses 65% of the remaining costs. Reassignment and partial wage payment can be combined, but not for the same hours.
To speed up implementation, criteria can be established in advance, for example for specific regions after a disaster. The legal process is also simplified: employers may directly appeal to the administrative court.
There are clear safeguards for employees: mandatory involvement of employee participation bodies, individual legal protection through the subdistrict court and a prohibition on dismissal for economic reasons during the scheme and for four months thereafter.
After the Council of State’s advisory opinion, the bill will be sent to the House of Representatives; the date on which the Act will enter into force is not yet known.