EXTENSION TO ERTES

It is official, on June 25, 2020, the Government has reached an agreement with the social agents (employers and unions) to extend the effects of the ERTES linked to the health crisis until September. The ratification of this decision and the associated aid will be done next Friday through the approval of the corresponding Royal Decree.

This agreement has been delayed with respect to the terms originally intended (June 15) before the expiration of said ERTES on June 30. One of the reasons for the delay in this agreement has been due to the resistance that employers have shown in the face of the reductions that are presented with respect to the discounts on Social Security contributions.

The executive’s proposal includes: Maintenance of FM ERTES (companies that have not been able to resume their activity or that are forced to close due to regrowth).

WHAT HAPPENS TO THE QUOTES OF THE COMING MONTHS IN RELATION TO THESE FM ERTES?

TOTAL FORCE MAJEURE ERTES:

It is contemplated that bonuses will continue to be applied to these FM ERTES, however the% of said bonuses will be progressively reduced each month:

• 70% in July.
• 60% in August.
• 35% in September.

Companies with less than 50 workers.

• 50% in July.
• 40% in August.
• 25% in September.

Companies with more than 50 or more workers.

This means paying 30%, 40% and 65% of the contribution for workers, respectively, in the coming months for companies with less than 50 workers and 50%, 60% and 75% for companies with 50 or more workers.

PARTIAL FORCE MAJEURE ERTES:

The current bonuses to date will be maintained, that is:

• 60% of the reinstated workers for the part of the working day actually carried out.
• 35% on workers who continue to be suspended.

In the case of companies with less than 50 workers.

• 40% on the reinstated workers for the part of the working day actually carried out.
• 25% on workers who continue to be suspended.

In the case of companies with 50 or more workers.

WHAT ABOUT ERTES FOR ETOP CAUSES?

Well, the bonuses provided for the ERTES of FM Partial will be applicable to you, some bonuses that until now were limited to the ERTES of FM.

The objective is to facilitate the transit of the ERTES from FM to ETOP now that the State of Alarm has ended and promoting the reincorporation of workers through the reduction of working hours.

New limits:

• Ban on overtime.
• Prohibition of establishing or resuming the outsourcing of the activity and new contracts directly or through ETTs.
• Extension to the ERTES for ETOP causes in relation to the prohibition to use these procedures if the company is domiciled in a tax haven in the case, as well as the prohibition to distribute dividends to the fiscal year in which the ERTE is applied, except if the company previously pays the amount of the exemptions enjoyed. These prohibitions will not be applicable to those companies that as of February 29 had less than 50 workers.
• Extension of job maintenance to ERTES due to ETOP causes (in the case of those companies that benefit for the first time from the exemptions mentioned, the computation of job maintenance will start from the entry into force of the new RD).

Similarly, unemployment benefits will also be extended until September 30, except for discontinued fixed payments that extend until December 31.