Everything you need to know about ERTE
15 April, 2020Erika
The Temporary Employment Regulation File (ERTE) is an exceptional measure in which companies are forced to reduce workers’ working hours, suspend contracts and in some cases, collective dismissal, due to special circumstances such as COVID -19.
Requirements to apply for unemployment protection
Firstly, employees affected by an ERTE should leave the necessary procedures for the application for unemployment benefits to the company. The procedure will be carried out through the State Public Employment Service (SEPE). However, the state of alarm obliges both the Government and the companies to adjust the measures as the exceptional circumstances derived from COVID-19 evolve. Given the limited administrative resources to carry out the procedure, if you are an employer or employee and you are affected by an ERTE, contact us. At Duguech & Dip we can advise you on your particular case.
Can you work in another company during an ERTE?
According to what is stated by the Public State Employment Service (SEPE), if the worker has suspended the contract by an ERTE, and receives an unemployment benefit, they can carry out another work activity. The activity can be, both for others and for their own account. However, it is mandatory to inform SEPE of the new activity since said benefit will be suspended.
Similarly, the SEPE points out that in the event that the new work activity is part-time, the worker may “request the compatibility of the benefit with the part-time contract. In this case, the proportional part of the time that he works will be subtracted from said benefit ”.
What happens if I am in a trial period and I am affected by an ERTE?
Workers who are on probation are also listed on Social Security. In other words, they are entitled to unemployment benefit.
What is a Contract Suspension ERTE?
An ERTE has different assumptions. In current circumstances, one of the most applicable is that of contract suspension. In this case, the company temporarily suspends the worker’s contract. This does not imply that the employee loses unemployment benefit.
What is a reduced working day ERTE?
It means that the company reduces between 10% and 70% the computed working day on the basis of a daily, weekly, monthly or annual working day. As in the previous case, the worker does not lose the unemployment benefit.
Can an ERTE combine suspension of contracts and reduction of working hours?
It all depends on the conditions of each company. Given the exceptional circumstances derived from COVID-19, the company can apply both assumptions simultaneously.
Can companies apply a total or partial ERTE?
Both in case of suspension of contract, or reduction of working hours, the company must evaluate the conditions of applicability of the ERTE. According to the company’s labor sector, ERTE can only affect workers if they have a contract or working day that is essential to suspend or reduce. This is why it is so important that many companies apply telework to avoid applying the entire ERTE.
How long can an ERTE last?
An ERTE is a temporary measure. Its duration will be determined by the circumstances that lead the company to apply the provision. In this case, the evolution of COVID-19 and the measures adopted by the Government will determine the duration of the ERTE. The suspension of contracts or reduction of working hours for reasons of force majeure will be extended for as long as the state of alarm declared by the Government remains in force.
During the state of alarm, the measures adopted by the Government affect both companies and workers. On our website you will find information about ERTE and its applications. Also, information related to the restrictions applied to international movements. If you need advice in this regard, do not hesitate to contact us.
Legal Notice: Since legal advice must be tailored to the specific circumstances of each case, and laws are constantly changing, nothing on this article should be used as a substitute for the advice of competent legal counsel. The content on this article is offered only as information. And does not constitute solicitation or provision of legal advice. You should always consult a suitably qualified lawyer regarding any specific legal problem or matter.
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