Netherlands’ draft law to enable employers to keep staff during sudden crises - CMS LAW-NOW
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On 26 September 2025, the Dutch government submitted the Draft Law for Employee Retention in Crisis (WPC or Wetsvoorstel Personeelsbehoud bij Crisis) to the Council of State for advice. If passed, the legislation will enable employers to retain staff during unexpected crises, such as pandemics, wars, or natural disasters, and prevent employees from losing their jobs in difficult times.
The following article outlines the key points of the bill.
Why the WPC?
The WPC is intended for employers temporarily facing reduced work capacity due to a crisis. It is designed as a successor to the temporary COVID-19 scheme (NOW) and the Short-Time Work scheme (WTV). The WTV allowed companies to reduce working hours temporarily during acute downturns but proved to be insufficient during the COVID-19 crisis. The NOW scheme was created under pressure and provided a temporary safety net for employers and employees. Based on the lessons of the pandemic and input from social partners, the bill, if passed, promises to be robust and structurally executable legislation that will be rapidly deployable in future crises.
Conditions and options
The scheme comes into effect when a crisis, as defined by law, occurs. In some cases, a crisis is automatically recognised, such as fire, extreme weather, or certain government measures. In other cases, such as pandemics, wars, natural disasters, or the failure of vital infrastructure, the Minister of Social Affairs and Employment must...
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