The great drop in business activity in Spain once the Government has decreed the crisis will cause a wave of ERTEs by companies, which for several days have already been facing a large drop in demand for their services or products or even before the complete stoppage of its activity. The Council of Ministers, at its meeting on Tuesday, by which the firms may adjust their staff due to the crisis. .
What does an ERTE consist of?
A Temporary Employment Regulation File is the adoption by the company of a temporary suspension of the employment relationship with a specific part of its workers. Or what is the same, when a firm decides an important part of its workers for a period of time.
How many types of ERTE are there?
There are two: the suspension of employment or, on the contrary, a reduction in the working day in case the dismissal of the workers is not necessary.
For what reasons can an ERTE be applied?
He explains that the Temporary Employment Regulation File is made obeying “economic, technical, organizational or production reasons.”
The economic causes occur “when a negative economic situation emerges from the company’s results, in cases such as the existence of current or expected losses, or the persistent decrease in its level of ordinary income or sales.” The techniques refer to changes “in the sphere of the means or instruments of production”, the organizational ones to changes “in the sphere of the systems and work methods of the personnel or in the way of organizing production” and those of production ” when there are changes, among others, in the demand for the products or services that the company intends to place on the market”.
How many workers can ERTE affect?
The law establishes a minimum number of employees so that companies can take advantage of them. As in the previous point, there are also three distinctions: companies with 100 or fewer employees must apply it to at least 10; companies with between 100 and 300 must apply it to at least 10% and companies with 300 or more must apply it to at least 30 workers.
How much can workers who are in an ERTE get paid?
Although, in theory, the procedure works the same as in the case of ‘normal’ dismissal (all workers who have worked at least 360 days in the last six years are entitled to unemployment), and will be entitled to an unemployment pension that will be 70% of the regulatory base during the first six months and 50% thereafter. These amounts have their limits: 1,098 for people without dependent children, 1,298 for those with one child and 1,411 for those with two.
What is the regulatory base?
The regulatory base and, in this case (it may be different depending on the pension), is made “by calculating the average of the contribution base for the unemployment contingency corresponding to the last 180 days worked, taking into account the calendar days of each month” and 30% will have to be subtracted during the first six months and 50% afterwards.
When is unemployment due to ERTE charged?
The mechanics are similar to the rest of the features. The first unemployment will be entered into the bank account set aside for this purpose between the 10th and 15th of the month immediately following the month of accrual.
What if I find a part-time job?
The SEPE reflects on this situation and affirms that, “if while you are collecting the unemployment benefit you start to work part-time as an employee, you can choose to suspend your benefit or make it compatible.”
What do companies save with an ERTE?
Firms that take advantage of an ERTE save costs detailed by the Lefebvre legal advisory. In the event of a reduction in working hours, the salary decreases in the proportional part that decreases the working day. The same happens with extra payments, but not with vacations.
For the suspension of employment, for each day not worked by the employee, the company must deduct the days worked and the proportional part of the weekly rest. There are no extra pays or vacations either.
Both in one and the other, only if they are due to cases of “force majeure” the company will be able to save the payment of the Social Security contribution that corresponds to the business part.
How is an ERTE executed?
The company must communicate its intention to the workers, who have five days to form a negotiating committee. This is followed by a seven-day consultation period, after which the company must make a decision and communicate it to workers and authorities.
In any case, both unions and the Ministry of Labor warn that the worker should not provide bank details or other personal details, since that corresponds to the company requesting the file. For this reason, they ask not to answer phone calls, SMS or emails that are due to a fraud attempt.
Can workers challenge an ERTE?
Yes. Employees have a period of 20 business days from the company’s notification. If the award is favorable to them, the company must restore their job or, failing that, the part of the working day that has been reduced.
Can the authorities avoid an ERTE?
Only in “force majeure cases”, where the competent authority, “regardless of the number of workers affected”, must prove that the company’s arguments correspond to those causes to which it alludes to dismiss its workers.
In the rest of the procedures, although the labor authorities can provide recommendations and follow up on the cases, they cannot avoid the company’s decision. At this point there are two options: execute the ERTE by mutual agreement with the workers and unions or, if the agreement does not reach, do it under the parameters that it deems most convenient, as long as it justifies the suitability of the ERTE.
Can workers be fired for a coronavirus ERTE?
Since Friday, March 27, the Government has prohibited layoffs derived from the coronavirus crisis, even if they were for economic, technical or production reasons, although it left the door open to appeals by companies if they adduce other types of causes such as, for For example, disciplinary
Are all coronavirus ERTEs going to be reviewed?
Yes. The Ministry of Labor will review “ex officio” all the employment regulation files requested due to the production stoppage due to the spread of the disease. The objective, according to the minister of the branch, Yolanda Díaz, is to avoid irregularities and fraud in the application of the ERTEs.
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