Loss of Covid-19 Relief for Dismissals or Failure to Maintain Employment

LOSS OF Social Security CONTRIBUTION EXEMPTIONS, Sixth Additional Provision of Royal Decree-Law 8/2020

Loss of contribution exemptions for employees affected by Temporary Layoff Procedure (ERTE) on grounds of force majeure:

The Sixth Additional Provision of Royal Decree-Law 8/2020 establishes an employment safeguard clause for Temporary Layoff Procedure (ERTE) based on force majeure due to Covid-19, but NOT for Temporary Layoff Procedure (ERTE) based on economic, technical, organisational or productive (ETOP) grounds related to Covid-19 (the original draft had envisaged applying the clause to both types of Temporary Layoff Procedure (ERTE)).

Accordingly, for Temporary Layoff Procedure (ERTE) based on force majeure there is an obligation to maintain employment levels for 6 months FOR THOSE EMPLOYEES COVERED BY THE Temporary Layoff Procedure (ERTE) (only those directly affected).

The specific consequences of non-compliance are yet to be confirmed, but it appears clear that any exemptions obtained will need to be repaid.

It also appears clear that the law expressly imposes an obligation to maintain employment levels, this does not, however, mean that a company is prohibited from dismissing employees.

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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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EXEMPTIONS ARE RETAINED IN THE FOLLOWING CIRCUMSTANCES:

• where the employment contract is terminated by way of disciplinary dismissal declared fair,
• voluntary resignation,
• death,
• retirement, 
• total, absolute or severe disability permanent disability,
• end of a call-up under a permanent seasonal contract,
• in the case of fixed-term contracts, where the contract expires upon completion of the agreed term,
• in the case of fixed-term contracts, where the contract expires upon completion of the specific work or service.