What is the ERTE of partial force majeure?
The Official State Gazette today published Royal Decree-Law 18/2020 by which the temporary lay-off plan for companies (ERTE) is extended until 30 June. The approved decree, the result of an agreement between the Government, trade unions and employers, provides for an extension of the ERTEs for force majeure derived from Covid-19, either for total force majeure (without restarting the activity) or partial force majeure (recovery of part of the activity). In the latter case, it is stated that, when it comes to reincorporating workers into the activity, priority will be given to adjustments via a reduction in working hours.
At Euriux Lawyers as the first national network of lawyers in Spain with more than 25 years of experience, we give you today the keys to an agreement that will facilitate the transition from force majeure ERTEs to ERTEs due to organisational, technical, economic or production causes. The special characteristics established in the regulation of 17 March will be applicable to ERTEs due to organisational, economic, technical or production causes that begin after the entry into force of this new decree and until 30 June. The latter will also be allowed to be processed while an ERTE due to force majeure is in force.
Can it be maintained if activity restarts?
The figure of ERTE for partial force majeure is created , with exemptions from contributions that prioritise reductions in working hours over suspensions.
- Companies restarting with reduced working hours may deduct 85 % of the contributions in May and 70 % in June if they have fewer than 50 employees, and 60 % in May and 45 % in June if they have more than 50 employees.
- Undertakings which resume activity but keep workers on lay-off may deduct 60 % of the May contributions and 45 % of the June contributions if they have less than 50 employees and 45 % of the May contributions and 30 % of the June contributions if they have more employees.
Does force majeure continue even if the state of emergency is lifted?
Yes, under the agreement signed with employers and trade unions, ERTEs due to force majeure are linked to the causes that prevent the resumption of activity "for the duration of the same and in no case beyond 30 June 2020", thus separating them from the duration of the state of emergency. Thus, companies that cannot yet return to business remain exempt from 100 % of social security contributions if they have fewer than 50 workers and 75 % if they employ more than 50 workers.
Their workers will continue to receive unemployment benefits without a waiting period or unemployment benefit until 30 June, except in the case of permanent-discontinuous workers, who will receive it until 31 December.
What is an ERTE due to force majeure?
A Temporary Labour Force Adjustment Plan (ERTE) due to force majeure allows the suspension of contracts or reduction of the working day of workers due to a lack of activity resulting from extraordinary circumstances, and can be supported by public aid.
Until the arrival of the coronavirus, force majeure had been associated with natural disasters. On 17 March it was approved by decree law that all ERTEs that had their direct cause in losses of activity due to the measures to curb COVID-19, such as the declaration of the state of alarm, would be considered force majeure.
Can the company distribute dividends?
Companies with tax domicile in tax havens and companies that distribute dividends in the fiscal year in which the ERTE is applied are not eligible for ERTE due to force majeure, unless they have less than 50 employees.
Can I be fired during this stage?
The decree makes this clause more flexible, although it does not disappear. The six-month period will start to run from the effective incorporation into work of persons affected by the ERTE, even if it is partial or only affects part of the workforce. This commitment to maintain employment will be deemed to have been breached if any worker affected by the ERTE is dismissed. There are exceptions (fair disciplinary dismissal, resignation, death, retirement, total, absolute or severe disability and termination of a temporary contract due to the end of its term or due to the end of the contracted work or service). In the event of non-compliance with this clause, companies must return all the contributions from which they were exempted, with a surcharge and interest for late payment.
The text specifies that this commitment to maintain employment six months after resuming activity will not apply to those companies that are at risk of going into insolvency proceedings under the terms established in article 5.2 of the Insolvency Act.
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ERTE: Can I work if the company resumes its activity?
Companies that have resorted to an ERTE due to the health crisis and that are resuming their activity will be able to take out of the ERTE, even on a part-time basis, the staff they need. This will make it easier for many small and medium-sized employers to take on workers.
This is one of the most recurrent questions of the last few days with the beginning of phase 0 of the de-escalation approved by the government. This Tuesday, the Council of Ministers is expected to adopt new measures on Temporary Redundancy Programmes (ERTE) and the introduction of new aid measures.
Today we learn about the Plan for the Transition to a New Normality, a programme that sets out the main parameters and instruments for the lifting of the measures established in the Royal Decree on the State of Alarm .
On Euriux Lawyers as the first national network of lawyers in Spain with 25 years of experience, we are going to make a summary of the main measures and solve many doubts that are still in the air and that affect companies and their workers.
Can I go out of my municipality to buy a product?
From phase 0 onwards, purchases are allowed in retail outlets of less than 400 square metres and within the same municipality, with certain hygiene and safety measures and in certain preferential time slots for the over 65s. However, if you have to buy a product that does not exist in the municipality, you can travel outside the municipality.
What is a small group that can meet in phase 1?
A small group contains a maximum of 10 people, as long as they are not vulnerable people. From phase 1 onwards, they can meet together, always keeping a social distance of approximately 2 metres and maintaining hygiene and safety measures.
Can I renovate my home?
From phase 0 onwards, refurbishment of unenclosed sites is allowed under certain safety conditions. Refurbishment of buildings is also permitted as long as they are empty and there is no contact with neighbours.
When can I go to my second home in the same province?
As envisaged in the New Normal Transition Plan, visits to second homes within the province where the current address is located will be allowed from phase 2 onwards.
What should I do to complain about a purchase I did not receive online?
The seller has a maximum period of 30 days from the date of purchase to deliver the product, unless you have agreed a different delivery period. If the deadline has not been respected by the seller, you have the right to cancel your purchase and the seller must reimburse you.
I had a trip and I couldn't make it because of the Alarm status, what can I do?
If your trip was a package tour organised by a travel agency, the travel agency may choose to reimburse you or offer you an alternative voucher for an amount equal to or greater than your purchase. You have one year to use the voucher. If you do not use the voucher within one year, the company must refund your money. During this time, if the agency's suppliers reimburse the agency for their share, the agency must reimburse you for those amounts and reduce that amount from the value of the voucher it has offered.
A family member dies and you notice that the funeral service prices are excessive...
You should bring this to the attention of the consumer authorities in your autonomous community. If a funeral service has charged you more than the maximum price, you have the right to be reimbursed the difference. The maximum price for these services is that which was established before the declaration of the state of alarm.
In the event that the deceased had life and death insurance that included funeral services that could not be provided, the heirs may claim reimbursement of their services,
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