Extension of ERTEs Until 30 September 2021

Temporary Layoff Procedure (ERTE) CURRENTLY IN FORCE:

The new Royal Decree-Law 11/2021, of 27 May, on urgent measures for the defence of employment, economic recovery and the protection of self-employed workers, extends the Temporary Layoff Procedure (ERTE) until 30 September 2021.

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Conesa Legal

At Conesa Legal, a legal advisory firm based in Barcelona, we have a team of lawyers specialized in all areas of law. We also provide comprehensive advisory and management services covering payroll, tax and accounting, and corporate compliance for both companies and self-employed professionals. We stand out for our expertise in labor law and social security, offering a highly specialized and personalized service since 1976. Our services include both preventive and reactive legal advice and representation, tailored to the needs of businesses and workers alike. Our multilingual team provides legal assistance in English, French, and Spanish, and is well prepared to support a broad range of local and international clients, whether they are companies seeking comprehensive legal solutions or individuals in need of personalized legal advice.

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Written by Josep Conesa

Employment and insolvency lawyer

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• force majeure ERTEs: automatically extended until 30 September 2021
• Impediment ERTEs: automatically extended until 30 September 2021, on the terms set out in the resolutions authorising them. The Social Security contribution exemptions will apply under the same conditions as described in our post on Royal Decree-Law 30/2020, of 29 September
• Limitation ERTEs: automatically extended until 30 September 2021, with the following exemptions applying from 1 June 2021 onwards:

  • For employees whose contracts are suspended, in respect of the period and proportion of working hours affected, the exemption on employer Social Security contributions accrued in June, July, August and September 2021 will be 85%, 85%, 75% and 75% respectively, where the company had fewer than fifty employees or equivalent workers registered with Social Security as at 29 February 2020.

  • For employees whose contracts are suspended, in respect of the period and proportion of working hours affected, the exemption on employer Social Security contributions accrued in June, July, August and September 2021 will be 75%, 75%, 65% and 65% respectively, where the company had fifty or more employees or equivalent workers registered with Social Security as at 29 February 2020.

NEW Temporary Layoff Procedure (ERTE), Activity Impediment or Restrictions.

Companies affected by public health restrictions and containment measures may apply for a temporary employment regulation procedure on grounds of impediment or limitation to their activity, under the terms set out in our post on Royal Decree- Law 30/2020, of 29 September. From 01/06/21 to 30/09/21, impediment-based procedures will benefit from the Social Security contribution exemptions described therein, while limitation-based procedures will benefit from the exemptions outlined above.

Once authorised, a procedure may be switched from impediment-based to limitation-based without the need to file a new Temporary Layoff Procedure (ERTE). The applicable exemptions will, however, follow the rules set out here for each category. The company must notify the labour authority and employee representatives of this change, and sign a responsible declaration to that effect.

EXTENSION OF Temporary Layoff Procedure (ERTE) ETOP COVID-19 PROCEDURES:

Temporary Layoff Procedure (ERTE) ETOP procedures in force at the time this new Royal Decree Law comes into effect will be extended under the same conditions described in our post on Royal Decree- Law 30/2020, of 29 September. That is, existing Temporary Layoff Procedure (ERTE) ETOP COVID-19 procedures will remain in place until the company issues its final communication. However, they may be extended provided that an agreement is reached during the consultation period, and the extension must be processed before the labour authority following the procedure applicable to COVID-19-linked Temporary Layoff Procedure (ERTE) ETOP procedures.

"NEW ETOP ERTES" COVID-19:

New Temporary Layoff Procedure (ERTE) ETOP procedures initiated after this new Royal Decree Law comes into force will be processed in accordance with the guidance set out in our post on Royal Decree- Law 30/2020, of 29 September.

Other CONSIDERATIONS:

By way of summary, and without a detailed explanation of requirements, the following provisions, as developed in our post on Royal Decree- Law 30/2020, of 29 September in accordance with, remain in force:

• The prohibition on distributing dividends.
• The limits and provisions relating to tax transparency.
• The penalty of losing exemptions in the event of dismissal.
• The prohibition on dismissal, which does not entail nullity but rather unfairness, according to recent rulings from the High Court of Justice of Catalonia.
• The limits and exceptions regarding overtime, new recruitment, and outsourcing.
• The suspension of time limits when fixed-term contracts are suspended.
  
  

Consult our employment lawyers for any Temporary Layoff Procedure (ERTE) or Collective Dismissal Procedure (ERE):