FNV: passing on severance pay is ‘world upside down’

Entrepreneurs and employers’ organizations came out this morning with their plan to also have the severance costs of ailing SMEs reimbursed by the government in the corona crisis. This after previously the NOW scheme for ailing companies was supplemented with 13 billion euros.

Young finds the new call incomprehensible. In her view, the financial support through the NOW scheme is intended to keep people employed, not to fire them.

‘Dog’s brutal’

“It is brutal to ask whether the government can pay the severance pay,” says Jong. “I understand that companies do not want to go bankrupt, but they make their turnover through their staff. You cannot send permanent employees away and hire them again later as cheaper self-employed professionals.”

According to the SME interest clubs, in particular catering companies, travel agencies, gyms and retailers have no money to pay the statutory transition allowance, as the severance pay is now called. While they have to lose weight in order not to go bankrupt.

Jong: “It seems to be a caterpillar-never-enough for the employers. This will never happen. For example, the employees also pay their own severance pay via their own taxes.”


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