Spain - Royal Decree-Law 6/2022: the government approves restrictions for layoffs, employment measures for specific sectors and an increase to the guaranteed minimum income

Spain - 30 / 03 / 2022

Spain Labor and Employment Alert

Royal Decree Law 6/2022, of March 29, 2020, adopting urgent measures under the National Plan in response to the economic and social consequences of the war in Ukraine, published in the Official State Gazette on March 30, has introduced a number of labor and social security measures that come into effect on March 31, 2022.

1. Restrictions on laying off employees

At companies which are beneficiaries of the direct support payments granted in the royal decree-law, rising energy costs cannot be used as an objective ground for laying off employees until June 30, 2022. Failure to fulfill this obligation will entail repayment of the support received.

Furthermore, any companies which elect reduced working hours or suspension of contracts measures under article 47 of the Workers’ Statute on grounds relating to the invasion of Ukraine and which also benefit from government support cannot use these grounds either for laying off employees.

2. Measures in the transport, shipping and port sector

Voluntary extensions have been allowed for employment contracts of Ukrainian crew members enrolled on Spanish flagged merchant vessels, for the necessary period and for lengths of up to 12 months, as well as extensions of temporary residence and work permits (for employees). The only requirement is a notification by the shipping company.

3. Measures in the road freight transport, agricultural, livestock and fishing sectors

Companies with workers registered for national insurance purposes which operate in the urban and road freight transport sector (CNAE 4931, 4932, 4939, 4941 and 4942), along with companies included in the Special Social Security System for Seafarers, as long as they have no outstanding social security obligations or any other deferrals currently in effect, may apply for a deferral of social security contribution payments and in respect of items collected jointly with social security contributions which become due in the months between April and July 2022.

4. Increase to the guaranteed minimum income

The Spanish Social Security Institute will grant an extraordinary increase to the applicable guaranteed minimum income benefit as of the date of entry into force of this royal decree-law, relating to the monthly payments for April, May and June 2022, which will consist of a sum calculated as 15% of the monthly amounts granted for those months (including any granted monthly supplements, and excluding amounts relating to earlier periods), as well as of any other non-monthly items which may have been added.