COVID-19: ERTE and MECUIDA Plan are extended until September 30, 2021
Spain Labor and Employment Alert
Following the V Social Dialogue Agreement reached between the Government, the labor union organizations UGT and CC.OO. and the employers’ associations CEOE and CEPYME, Royal Decree-law 11/2021, of May 27, on urgent measures for the defense of employment, economic reactivation and the protection of self-employed workers, has been published today, May 28.
In relation to ERTE (temporary employment regulation procedures), the following are some of the most important measures:
ERTE due to force majeure under article 22 of Royal Decree-law 8/2020, of March 17, in force on May 28, 2021, are automatically extended until September 30, 2021.
Also extended are ERTE due to an obstacle to business which are authorized under the provisions of section 2.1 of Royal Decree-law 30/2020, of September 29, or under article 2.1 of Royal Decree-law 2/2021, of January 26, which will remain in force under the terms of the resolutions whereby they were authorized.
During the closure period and until September 30, 2021, the extraordinary measures relating to payment of Social Security contributions and exemption from contributions will continue to apply to these ERTE.
Current ERTE due to restriction of the normal conduct of business, based on article 2.2 of Royal Decree-law 30/2020, of September 29, or on article 2.1 of Royal Decree-law 2/2021, of January 26, are automatically extended until September 30, 2021.
The following will be the exemptions applicable to these ERTE, from June 1, 2021:
a) For companies with less than 50 workers or equivalent persons registered on February 29, 2020, the exemption from employer’s contributions accrued in the months of June, July, August and September 2021 will amount to 85%, 85%, 75% and 75%, respectively.
b) For companies with 50 or more workers or equivalent persons registered on February 29, 2020, the exemption from employer’s contributions accrued in the months of June, July, August and September 2021 will amount to 75%, 75%, 65% and 65%, respectively.
The possibility is also established of seeking new ERTE due to obstacles to or restrictions of business from June 1, 2021 until September 30, 2021, to which the exemption from contributions under article 2 of Royal Decree-law 30/2020 will apply.
With regard to ERTE based on economic, technical, organizational and production reasons (ETOP) related to COVID-19, the possibility is maintained of requesting them up to September 30, 2021 in the terms provided by article 3 of Royal Decree-law 30/2020, of September 29.
The limits and provisions relating to the distribution of dividends and fiscal transparency are extended for all ERTE authorized previously or under this new royal decree-law.
Also extended is the safeguarding of employment according to the provisions of article 5 of Royal Decree-law 30/2020, both in relation to earlier periods and due to the benefits contained in this legislation.
The limits and exceptions in relation to overtime, new recruitments and outsourcing also remain in force until September 30, 2021.
Also remaining in force until September 30, 2021 is the provision which does not consider a reason justifying dismissal the force majeure and the objective reasons which justify the ERTE (commonly known as the “prohibition of dismissal”) and the interruption of the calculation of temporary contracts affected by a suspension of the contract.
The employment protection measures, contained in articles 8.1, 9, 10 and 11 of Royal Decree-law 30/2020, of September 29, are extended until September 30, 2021.
The MECUIDA Plan, providing measures for the reconciliation of family and work life due to COVID-19, will remain in force until September 30, 2021.