What is an ERTE and how does it affect you?
31 March, 2020Erika
The Temporary Employment Regulation File (ERTE) is a transitional measure. This is carried out by companies in exceptional circumstances, such as those we are currently experiencing due to COVID-19.
Royal Decree 1483/2012 indicates three types of procedure:
- Workday reduction
- Contract suspension
- Collective dismissal
Depending on the activity of the affected company, the company may temporarily suspend part of its activity or even all of it. As this is a temporary measure the company will not have to pay compensation to affected employees. Although this does not eliminate the right of workers to receive the corresponding unemployment benefits.
Which companies can apply an ERTE?
Considering the exceptional circumstances resulting from COVID-19, the file can be given in any sector. However, the Spanish government has declared that it will not allow a mass dismissal of workers. An official Social Security guide points out that the company that applies this measure, “must be affected by the declaration of the state of alarm and the coronavirus.”
It is therefore a measure of force majeure that affects many companies and workers. This directly involves companies that must suspend or cancel activities, the closure of establishments. Also, companies directly related to transport and mobility, which due to the current emergency cannot sustain the well-being of the workforce.
How much is charged for unemployment during the ERTE?
Due to the exceptional circumstances that we are currently going through, Social Security has indicated that “all those affected may collect unemployment, even if they have not contributed the minimum period necessary for it”. During the ERTE duration, the worker will receive 70% of the regulatory base during the first six months of unemployment. Additionally, from the seventh month on, you will receive 50%.
As a worker, you should know that, if the company where you work is forced to take this exceptional measure, the Public Employment Service (SEPE) processes its benefits.
Can I be fired if the ERTE is lifted and I return to the company?
No. The Government has established a “job safeguard” in which it states that “extraordinary measures in the workplace will be subject to the company’s commitment to maintain employment for a period of six months from the date of resumption of activity ” according to the BOE. That is to say, the worker cannot be fired in the 6 months following his return to work.
What differentiates an ERTE from an ERE?
The Employment Regulation File (ERE) supposes the definitive suspension of the work activity of the workers.
In conclusion, if you are an employer or worker, and at this moment you are affected by an ERTE, do not hesitate to contact us. At Duguech & Dip we can advise you.
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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