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THE NEW EXTRAORDINARY UNEMPLOYMENT SUBSIDIES
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Royal Decree Law 11/2020, of 31 March, adopting urgent complementary measures in the social and economic sphere to address COVID-19, includes among its package of measures two extraordinary unemployment subsidies for two groups of workers considered vulnerable:
- Temporary employees
- Domestic workers
Both groups may receive an exceptional unemployment subsidy, provided they meet the requirements set out below.
DOMESTIC WORKERS (covered under Articles 30, 31, 32 and Transitional Provision 3 of the Royal Decree-Law)
It should be noted that, although this group does not ordinarily have a recognised right to unemployment benefit, given the exceptional circumstances we are facing, they may also benefit from an extraordinary subsidy. To qualify, they must demonstrate that they meet the following:
ELIGIBILITY REQUIREMENTS FOR DOMESTIC WORKERS' UNEMPLOYMENT SUBSIDY:
1. The worker must have been registered under the Special Domestic Workers' Scheme of the General Social Security System before 14 March, the date on which the state of emergency was declared (Royal Decree 463/2020, of 14 March); and
2. Following the declaration of the state of emergency, the domestic worker must be able to demonstrate that they are in one of the following situations:
- a) Having ceased work, wholly or partially and on a temporary basis, in order to reduce the risk of contagion, that is, as a result of the current COVID-19 health crisis and for reasons beyond their control, in one or more households. To evidence this, they must attach a signed responsible declaration from the employer or employers, or
Documentary evidence of deregistration from Social Security will also be accepted.
Whichever option applies to your situation, at Conesa Legal we can draft the responsible declaration statement, the dismissal letter, or the withdrawal from contract document on your behalf, and advise you on the legal differences between each available option.
UNEMPLOYMENT BENEFIT AMOUNT FOR DOMESTIC WORKERS:
Regarding the amount of this exceptional subsidy, it is important to distinguish between the four scenarios a domestic worker may face:
1. Loss of the only job: An extraordinary financial benefit will be paid, the amount of which will be calculated by applying 70% to the regulatory base for the month prior to the triggering event. This amount may not exceed the Spanish national minimum wage, that is, it may not exceed €950, excluding the proportional share of extra payments.
2. Partial loss of a single employer's household: The subsidy amount referred to above will be received in proportion to the percentage reduction in working hours experienced by the worker.
3. Total loss of multiple jobs: The amount will be calculated based on the regulatory base for each of the different jobs, with 70% applied to each of the respective bases. The total amount will be capped at the Spanish national minimum wage of €950.
4. Partial loss across all or some of the jobs: The percentage reduction in working hours experienced by the worker in the relevant activity will be applied to each of the resulting amounts. If the total subsidy amount, prior to the application of those percentages, reaches the Spanish national minimum wage (excluding the proportional share of extra payments), that amount will be apportioned across all jobs held, in proportion to the contribution bases for the month prior to the triggering event for each job. The percentage reduction in working hours experienced by the worker in the relevant activity will then be applied to the amounts calculated in this way.
Regarding the payment of this subsidy, the regulations provide that it will be paid on a monthly basis, with payments beginning from the date indicated by the employer in their statutory declaration confirming the total or partial absence of service by their domestic employee. However, where the employment relationship has been terminated, the reference date will be the date of the dismissal letter or the written notice of withdrawal from contract. The date of deregistration from Social Security may also be taken into account.
Regarding the compatibility and incompatibility rules applicable to this extraordinary subsidy for loss of activity, it is important to note that it will be compatible with any income received from self-employed or employed work being carried out at the time the subsidy accrues, provided that the combined total of income from the subsidy and any other activities does not exceed the €950 salary Mínimo Interprofesional threshold. However, this benefit will be incompatible with the subsidy for temporary disability (IT), as well as with the recoverable paid leave also introduced by the Government under Royal Decree-Law 10/2020.
Finally, as noted in relation to the subsidy for workers on fixed-term contract contracts, the Public Employment Service (SEPE) will establish the procedure for processing applications, the forms to be used, the processing method (in person or online) and the submission deadlines. This will be set out within a period ending on 1 May.
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FIXED-TERM CONTRACTS (covered under Articles 33 and Transitional Provision 3 of the Royal Decree-Law)
The Royal Decree-Law provides that workers on fixed-term contract contracts (including, for example, training contracts, relief contracts, substitution contracts, etc.) will be entitled to an exceptional unemployment subsidy upon termination of their fixed-term employment contract.
ELIGIBILITY REQUIREMENTS FOR UNEMPLOYMENT BENEFIT UPON EXPIRY OF A FIXED-TERM CONTRACT:
To qualify, workers must demonstrate that the employment relationship in question lasted for at least two months after the entry into force of Royal Decree 463/2020 of 14 March, declaring the state of emergency.
Under normal circumstances, these workers would need to demonstrate a minimum of one year's contributions in order to qualify for unemployment benefit, entitling them to four months of payments. However, under this newly approved measure, they will be able to claim an extraordinary subsidy even without meeting that contributions requirement. They will therefore not need to prove that they have made the necessary contributions to access another benefit or subsidy, provided they have no income within the meaning of Article 275 of the General Social Security Act.
DURATION OF THE BENEFIT:
The duration of this exceptional subsidy will be one month. It may, however, be extended if so provided by Royal Decree-Law.
Accordingly, workers on fixed-term contract whose employment relationship ended during the state of emergency will be entitled to a monthly payment equivalent to 80% of the monthly IPREM (Spain's public multiple-effects income indicator) in force at the time. Since the IPREM is currently set at €537.84, the amount of this benefit will be €430.27.
It should be noted that this exceptional unemployment subsidy cannot be received at the same time as any minimum income benefit, social inclusion income, social salary, or any other analogous assistance granted by any public authority.
It is also important to bear in mind that the Public Employment Service (SEPE) will establish the procedure for processing applications, the forms to be used, the processing method (in person or online), and the deadlines for submission. This will be set out within a period ending on 1 May.
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