Part-time layoffs and secondment as solution to energy crisis
Bankruptcies are slowly increasing again as a result of the energy crisis, high inflation and the cessation (and repayment) of government support measures. Retail, agrifood and business services are particularly hard hit. Entrepreneurs in these sectors should anticipate even worse business times. In that context, when part of the turnover is lost, two alternatives to a (final) reorganization can be considered, namely part-time dismissal and secondment.
Part-time layoff as a solution
The first option is to reduce the hours of your employees. This way you can reduce your personnel costs. Part-time dismissal can be done through the UWV or through a settlement agreement. You pay a partial transfer fee in exchange for a reduction in hours. For the reduction in hours, your employee will be entitled to unemployment benefits. If necessary, you can agree on a return guarantee to the old scope of work. For older employees in greenhouse horticulture, the seniority scheme is also an alternative. This arrangement allows an older employee to work 20% less while retaining 90% of the salary.
Secondment as a solution
Another solution is collegial secondment. This has been done a lot in recent years in the industry and certainly offers a solution for the coming winter. Record these arrangements well in a secondment agreement. A risk to secondment is that you as a hirer (in addition to the lender) are jointly and severally liable for payment of wages, income tax and sales tax for the hired employees. In addition, chain liability may follow for you if the lender as formal employer fails to pay wages. Other risks include transfer of undertaking, applicability of a different collective bargaining agreement and conditions of employment, incapacity for work or an industrial accident of the posted employee. Finally, all employers who provide workers for a fee have a duty to register with the Chamber of Commerce. If you fail to comply with this obligation, the Inspectorate SZW can impose a fine on you. This fine is as much as €8,000 for the first 10 loaned workers.
More information or advice about part-time dismissal or secondment?
Do you have questions about part-time dismissal or secondment? Please contact Richard Ouwerling, attorney at law at LVH Advocaten in Rotterdam for more information.
