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ROYAL DECREE– LAW 30/2020 REGARDING SOCIAL MEASURES

Laboral

RELEVANT ISSUES OF NEW ROYAL DECREE– LAW 30/2020, SEPTEMBER 29TH, REGARDING SOCIAL MEASURES DEFENDING THE EMPLOYMENT

RDL 30/2020 of September 29th approves new labour measures among which:
 
EMPLOYMENT LAYOFF PLANS
 
1.- ERTEs due to force majeure

  • They are automatically extended until January 31st, 2021.
  • Two new types of ERTEs due to force majeure are created:
    • Impediment of the development of the activity in some workplaces due to new health restrictions, as of October 1st, 2020.
    • Limitation of the standardized development of the by decisions or measures adopted by the Spanish authorities.


2. ETOP (economic, technical, organisational or production causes) ERTEs related to Covid-19

- The shortened procedure will continue to apply until January 31st, 2021.

- It may be initiated while an ERTE is in force due to force majeure, in which case the effective date is retroactive to the end of the ERTE.

- The ETOP ERTEs in force on September 30th, 2020 will continue to be applicable in the terms provided in the company’s final notice. However, they may be extended provided agreement is reached to that effect during the consultation period.  
 
3. Limitations and commitments

  • Employment safeguard

The commitment to maintain employment is kept. The companies that take advantage of the new exemptions will be committed to a new 6-month job retention period, which for those companies that are already affected by a previous commitment will begin to run when the commitment ends.

  • Hiring prohibition

During the term of the ERTE, whatever its modality, no overtime, no new outsourcing of the activity and no new hiring may be arranged, either directly or indirectly, unless the regulated workers cannot, due to education, training or other objective and justified reasons, perform the functions entrusted to the new hires.

  • Prohibition of dismissal and extension of temporary contracts

Articles 2 and 5 of RD 9/2020 will remain in force until January 31st, 2020, which consider unjustified the extinction of contracts and dismissals based on FM or ETOP causes covered by the ERTE; and which provides for the interruption of the computation of temporary contracts during the term of the ERTE.

  • Dividend distribution

The limits established in relation to the distribution of dividends remain in force. These limits will also apply to ERTEs due to impediment or limitations of activity.
 
 
EXTRAORDINARY UNEMPLOYMENT PROTECTION MEASURES

  • Companies affected by the automatic extension of the ERTE and those applying for ETOP causes must make a new collective request for unemployment benefits before October 20th.
  • The eligibility for unemployment benefit is extended until January 31st, 2021, even if they do not have the minimum contribution period.
  • The amount of the benefit will be 70% of the regulatory base even if six months have passed since it was received.
  • Unemployment benefits will be consumed, however, those workers who obtain a new right before January 1st, 2022 as a result of termination of contract or unfair dismissal will not be counted as having consumed the unemployment benefits received during the ERTE.

 
EXEMPTIONS FROM SOCIAL SECURITY CONTRIBUTIONS

  • Companies belonging to “sectors with high rate coverage of ERTE and low rate activity recovery”, belonging to the CNAE included in the Annex to the Royal Decree, as well as companies whose business depends (indirectly and mostly) on the above or that are part of its value chain:
    • 85% if the company had less than 50 workers as of February 29th.
    • 75% if you had more than 50 employees.
  • companies that are prevented from developing their activity
    • 100% if the company had less than 50 workers as of February 29th
    • 90% if you had more than 50 employees.
  • companies that see their standardized development activity limited
    • 100%, 90%, 85% and 80% from October 2020 to January 2021 respectively, if the company had less than 50 workers on February 29th.
    • 90%, 80%, 75% and 70% from October 2020 to January 2021 respectively, if you have more than 50 employees.