NEW MEASURES IN PLACE FOR ERTE by FERRER ASOCIADOS

After several weeks of negotiations between the Government and unions, the Government has passed the Royal Decree-Law 24/2020 of 26 June on social measures to stimulate employment and protect self-employed individuals and the competitiveness of the industrial sector.

The new Royal Decree-Law prolongs the measures adopted by the temporary employment regulation procedures due to force majeure, as well as those due to economic, technical, organisational and productive causes until 30 September 2020, as well as the unemployment protection measures.

The main new developments concern the procedures involving suspension and reduction of the working day due to economic, technical, organisational and productive reasons. In particular, companies will be exempt from paying the company contribution to social security and for joint collection which previously only applied to cases of force majeure.

Additionally, the procedure may be initiated while an ERTE due to force majeure is in place. When it is initiated after the termination of an ERTE based on the provisions of article 22 of the RDL 8/2020 of 17 March, the date of effect will be backdated to the date of termination of the previous ERTE.

The percentages of exemption for the months of July, August and September have been modified, as detailed below:

1. FULL ERTE:

- Exemption for companies with less than 50 employees:

    - 60% active employees

    - 35% inactive employees

- Exemption for companies with more than 50 employees:

    - 40 % active employees

    - 25% inactive employees

2. PARTIAL ERTE:

- Exemption for companies with less than 50 employees:

    - 70% throughout July

    - 60% throughout August

    - 35% throughout September

- Exemption for companies with more than 50 employees:

    - 50% throughout July

    - 40% throughout August

    - 25% throughout September

Companies which, as of 1 July are prevented from carrying out their activities, due to the implementation of new restrictions or containment measures, will have an 80% exemption for companies with less than 50 employees, and 60% for those with more than 50 employees, until 30 September.