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Spain - Proceedings for collective dismissal - Suspension of employment contract

COVID-19 - NEW MEASURES REGARDING SUSPENSION OF EMPLOYMENT CONTRACTS AND REDUCTION OF WORKING TIME. 

From May 13th Royal Decree-Law 18/2020 entered in force, including the following measures.

Specialties regarding ERTEs (procedures for temporary lay-offs or reduction of working hours) due to force majeure causes related to COVID-19 during the gradual plan to get back to work (informally named unconfinement).

ERTEs due to force majeure may be extended up until June 30th, 2020.

Companies should reinstate the affected workers to their jobs as soon as they become needed again for developing the recovered activity.

Companies who decide to reinstate workers to their jobs or modify in any way the ERTE conditions are required to notify their decision before making it effective.

ERTE procedures for economic, technical, organizational and production causes communicated after the so-called unconfinement.

While an ERTE due to force majeure causes is in force, it is possible to transit to another ERTE procedure for economic, technical, organizational or production causes. The effects of the latter would start the day after the previous ERTE ends because of the extinction of force majeure causes.

Extraordinary measures regarding unemployment protection.

The unemployment protection measures set in sections 1 to 5 of article 25 of Royal Decree-Law 8/2020, of March 17, will be applicable until June 30, 2020. Among these measures is one of great interest to the protection of workers: the one consisting in not computing the time during the unemployment benefit on its contributory level is received as consumed for the purposes of calculating the established maximum periods of this benefit’s perception.

Lawyers and Tax / Labor Advisors

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