The aim of this newsletter is to communicate that, after the approval by the Council of Ministers on March 17 of Royal Decree-Law 8/2020, of extraordinary urgent measures to confront the economic and social impact of COVID -19, the following agreements have been adopted in relation to the employment situation of companies and their workers.
In this way, there is a possibility of requesting temporary employment regulation files (ERTEe) for temporary suspension of the employment contract or temporary reduction of working hours.
1. Pursuant to the provisions of Royal Decree Law 8/2020, and due to force majeure (Art, 47 WORKERS STATUTE, hereinafter ET), the temporary suspension of contracts or the temporary reduction of working hours may be carried out.
2. The procedure will be initiated by a request from the company, accompanied by a report regarding the link of loss of activity as a consequence of COVID-19, all of which will be documented and must be communicated to the workers.
3. Between the company and the workers' representatives (if there is not, a representation will be appointed) and a consultation period will begin.
4. The existence of force majeure will be verified by the Labor Authority (normally the Autonomous Communities Councils) in a short time. It is possible to request a optional report from the Labor Inspectorate.
5. If the Labor Authority understands the existence of force majeure, the temporary suspension of contracts or the temporary reduction of working hours will apply.
6. Once the temporary suspension of the contract or the temporary reduction of the working day has ended, the worker will return to his or her job in the same conditions that it had, prior to the temporary employment regulation file.
7. EXEMPTION OF SOCIAL SECURITY CONTRIBUTIONS. While the temporary suspension of the contract or temporary reduction in working hours lasts, there is a reduction in working hours provided that on 02/29/2020 the company is in any of the following situations:
If the company has less than 50 workers, they are exempt from paying the business fee and those from joint collection (Unemployment, Fogasa, Vocational Training and Professional Contingencies).
If the company has more than 50 workers, they are exempt from 75 of the payment of the business fee.
8. For the exemption from business fees, the company will request it from the General Treasury of Social Security (it will include the affected workers) and for this, verification by the SEPE (Public Employment Service Bureau) of the recognition of the provision of unemployment to workers affected by temporary suspension of the contract or temporary reduction of working hours.
9. For the purposes of the workers, the time they are with the suspended contract or the reduction in working hours, will count them as effectively worked and the unemployment benefit will not count as a benefit when it is for the COVID-19.
10. This also applies to cooperative workers members.
11. These measures will be maintained as long as the situation of COVID-19 is maintained (ART. 22, 23, 24 & 25 RDL 8/2020).
If you need more legal advice or iniciate an ERTE proceeding, please do not hesitate to contact us.
Víctor de Cambra Antón