EXTENSION OF ERTES UNTIL 30TH SEPTEMBER 2020
The Council of Ministers has approved in a special meeting a Royal Decree-law by which the temporary employment regulation files (ERTEs) associated with Covid-19 are extended until September 30.
The II Social Agreement in Defense of Employment establishes the extension of the ERTES until next September 30, prolonging many of the conditions already established in the previous extension, but with the following developments regarding the exemption of contributions to Social Security.
Exemption from fees to Social Security
In the new extension of the ERTES until September 30, 2020, the following quota exemptions are established for companies that are in ERTE due to causes of total force majeure and are moving to an ERTE due to causes of partial force majeure:
– For companies with less than 50 workers: 60% exemption from social security contributions with respect to workers who are active during the months of July, August and September and 35% exemption with respect to workers who remain in ERTE in these months.
– For companies with 50 or more workers: 40% exemption from social security contributions with respect to workers who are active and 25% exemption for those who remain in ERTE.
It is established that companies that are currently in ERTE due to total or partial force majeure will go to a transition ERTE, an ERTE due to ETOP causes, until September 30, 2020. In this situation, the following exemptions from social security contributions are established. :
– Companies with less than 50 workers: Decreasing exemption in the contributions of their employees of 70% in July; 60% in August and 35% in September.
– Companies with 50 or more workers: Decreasing exemption in the contributions of their employees of 50% in July; 40% in August and 25% in September.
These transition ERTES will be processed once the mandatory report of the Labor Inspection is obtained and once the workers’ representatives have been informed.
The procedure would be as follows: companies that are currently in ERTE due to causes of total force majeure will go to an ERTE due to causes of partial force majeure with the first exemptions and from there they will go to an ERTE due to ETOP causes with the second exemptions.
The prohibition of layoffs for companies covered by ERTE is maintained
Companies must maintain employment for a minimum of 6 months when they have benefited from exemptions from social contributions by being in ERTE.
In addition, workers will not be allowed to work overtime or that the company hires workers directly or through ETT, unless their hiring is sufficiently motivated and justified, nor to distribute dividends during 2020.
Greater protection for companies and workers in case of possible outbreaks
The end of the Alarm State has caused that, in recent days, new outbreaks have been announced in different parts of the Spanish geography. This has led to the II Social Agreement in Defense of Employment establishing that people affected by ERTES due to force majeure or ERTES due to ETOP causes derived from COVID-19 or those processed in case of regrowth, will recognize the benefit even when they do not prove a prior contribution period and the counter will be applied to 0.
Likewise, the agreement contemplates that companies that have already resumed their activity but are forced to close as a result of outbreaks, will be able to take advantage of an ERTE again due to force majeure with a quota exemption of 80% for companies with fewer of 50 workers and 70% if they have 50 or more workers.
Unemployment benefits for workers remain
Workers affected by an ERTE will continue to collect their unemployment benefit normally until September 30 and, in the case of permanent – discontinuous workers, they will do so until December 31.
