Extension of Temporary Layoff Procedure (ERTE) until 28 February 2022

Below you will find the latest information on the extension of Temporary Layoff Procedure (ERTE) until February 2022, recently published in the Spanish Official Gazette (BOE).

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EXTENSION OF Temporary Layoff Procedure (ERTE):

The new Royal Decree 18/2021 extends existing Temporary Layoff Procedure (ERTE) until 28 February 2022.

To do so, the following will be required:

• Submit the extension request before 15 October 2021.
• Attach to the request a record of all suspensions or reductions carried out during July, August and September 2021.
• If extending a Temporary Layoff Procedure (ERTE) based on ETOP grounds (economic, technical, organisational or production-related) due to Covid, it must be accompanied by a report from the employee representatives with whom the Temporary Layoff Procedure (ERTE) was negotiated.
• If no resolution is issued, the request will be deemed approved by default (positive administrative silence).
• Companies must submit a new collective benefit claim and must notify any changes in status on a monthly basis.

Temporary Layoff Procedure (ERTE) based on force majeure and on Article 23 of Royal Decree-Law 8/2020 will cease to have effect in all respects on 1 November 2021 if companies fail to submit the documentation required under this new Royal Decree. In other words, taking no action will be treated as equivalent to voluntarily relinquishing the Temporary Layoff Procedure (ERTE) currently in force.

NEW Temporary Layoff Procedure (ERTE) DUE TO RESTRICTIVE OR LIMITING MEASURES

Temporary Layoff Procedure (ERTE) based on measures that limit or prevent business activity may only be requested if new measures or restrictions are published between 1 November and 28 February. 

• These Temporary Layoff Procedure (ERTE) benefit from Social Security contribution exemptions, which are higher where training activities are carried out.
• Where no resolution is issued in response to a request, positive administrative silence applies and the request is deemed approved. 
• It is necessary to notify the relevant labour authority and employee representatives of any changes in the status of the affected workplaces and workers.
• A responsible declaration must also be submitted to Social Security.
• The obligation to report the list of affected workers to the Public Employment Service (SEPE), along with any subsequent changes, remains in force.
• The benefit claim must be communicated to the Public Employment Service (SEPE).

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