New extension of the ERTE
Patrick Gordinne Perez2025-01-19T18:58:35+00:00New extension of ERTEs
On 30 September, Royal Decree-Law 30/2020 was published, extending the validity of ERTEs due to force majeure and including other new developments in labour matters.
With regard to ERTEs, the Royal Decree-Law includes the following new features:
All ERTEs due to force majeure that are currently in force are automatically extended until 31 January 2021. Attention! However, only some companies will be able to continue to apply tax exemptions from October onwards (depending on their CNAE). For example, hotels and similar accommodation or graphic arts companies will be able to do so.
ERTEs for economic, technical, organisational or production reasons that start from 30 September to 31 January 2021 may be processed following the “simplified” procedure that was approved a few months ago. For example, the consultation period has a maximum duration of 7 days. ERTEs for such causes that have already been processed will remain in force. In such cases, if the ERTE ends, its extension may be processed without having to initiate a new ERTE (in which case an agreement is required to be reached in a consultation period).two new types of ERTE are also established:
The ERTE due to impediment in the development of the activity due to new restrictions adopted from 1 October 2020. The companies affected will be exempted from their contributions during the closure period and until 31 January 2021, which will be 100% if they have fewer than 50 workers or 90% if they have 50 or more workers.
The ERTE due to limitations in the development of the activity as a consequence of measures adopted by the Spanish authorities. The companies affected will also be able to apply incentives in contributions until January, although the amount will be between 70% and 100% (depending on the month and the size of the company). Attention! In any case, the companies that receive the indicated exemptions in Social Security contributions will be committed to a new period of six months of maintaining employment.
With regard to other matters, the following measures should be highlighted:
The impossibility of alleging force majeure, or economic, technical, organisational or production causes related to COVID-19, for the purposes of justifying a dismissal, is extended until 31 January 2021.
The interruption of the maximum duration of temporary contracts is also extended until 31 January 2021.
For workers affected by ERTEs, the time during which unemployment benefit is received will not be counted as having been used up if they receive a new benefit before 1 January 2022 as a result of the termination of a temporary contract or an individual or collective dismissal for economic, technical, organisational or production reasons, or a dismissal for any reason declared unfair.
The amount of unemployment benefit for those affected by ERTE will remain at 70% of the regulatory base until 31 January 2021 (it will not be reduced to 50% after the first six months).
An extraordinary benefit is recognised for permanent discontinuous workers who have been affected by an ERTE.
From 1 October 2020, self-employed persons who are forced to suspend all their activities as a result of a decision taken by the competent authority will be entitled to an extraordinary termination benefit.
If you would like more information about these new extensions of the ERTEs, please contact our Employment Department.