Temporary Layoff Procedure (ERTE) in Spain: Royal Decree-law 30/2020

The Royal Decree-law 30/2020 (hereinafter, RD-law 30/2020) on social measures in defense of employment came into force on 30 September 2020 after its publication in the BOE (Boletín Oficial del Estado, the Official State Gazette) on that same date. Here is a summary of its main changes.

Temporary Layoff Procedure (ERTE) due to force majeure and economic, technical, productive, or organizational grounds

Temporary Layoff Procedure due to force majeure from article 22 RD-law 8/2020 (‘ERTE FM’): automatic extension until 31 January 2021.

Temporary Layoff Procedure due to economic, technical, productive, or organizational reasons from article 23 RD-law 8/2020 (ERTE ETOP):

  • Application for a new ERTE ETOP until the 31 January 2021
  • Initiation of a new ERTE ETOP while an ERTE FM is still in force
  • If the new ERTE ETOP starts after the completion of the ERTE FM, the effects of the ERTE ETOP will revert to the time when the ERTE FM ended
  • ERTE ETOP in force before the entry into force of this RDL will be enforceable in its terms of negotiation and will remain in force until the agreed date
  • For ERTE ETOP ending during the validity of this regulation, an extension is possible after negotiation.

Temporary Layoff Procedure due to resurgence (1st Additional Provision of the RD-law 24/2020)

  • They will remain in force under the terms of their corresponding resolutions, whether explicit or implied.
  • Application of the social security contribution exemptions provided for the ERTE due to activity impediments or limitations.

Other developments

  • Existing agreements to maintain the level of employment will remain in force.
  • Companies that, under this rule, benefit from exemptions to Social Security contributions will be subject to a new six-month period of employment protection. For companies already bound by a previous commitment of employment protection, the new protection will start counting after its termination.
  • Prohibition of dismissals and contract terminations based on the same causes as ERTE linked to COVID until 31/01/2021
  • Maintenance of the suspension of the duration of temporary contracts, included in the ERTE linked to COVID until 31/01/2021
  • Prohibition of overtime hours, new activities’ outsourcing, and recruits while ERTEs are in force.
  • Maintenance of access to unemployment benefits for those who do not accredit the minimum contribution period until 31/01/2021
  • Companies subject to the extension of force majeure ERTE or that are enforcing an ERTE ETOP must submit a collective application for unemployment benefits before the SEPE (State Public Employment Service) before 20 October 2020.
  • From the entry into force of this law, the reception period of unemployment benefits by a force majeure ERTE or an ERTE ETOP will be taken into account to calculate its maximum duration period.

Table of exemptions to the social security contributions between 1 October 2020 and 31 January 2021 (click here to see)

 

If you have questions regarding the temporary layoff procedure in Spain under Royal Decree-law 30/2020 do not hesitate to contact us.

This article is not considered as legal advice

Alejandra Sanz

A licensed attorney with a Master's degree in Commercial Law, Alejandra Sanz is specialized in the areas of company labour law and employment law in Spain. Working languages: Spanish, English, and French. For any query Contact Alejandra Sanz