July 6, 2020

Job won’t require companies with ERTE at risk of bankruptcy to keep jobs



The Minister of Labor and Social Economy, Yolanda Díaz, has indicated that companies that are at risk of bankruptcy and have taken ERTE due to force majeure will not be obliged to comply with the employment safeguard clause that commits them not to fire for six months.

Díaz has asked in the plenary session of Congress for a parliamentary consensus to validate the Royal Decree that extends ERTEs motivated by coronaviruses until June 30, which he said should evolve towards ERTEs motivated by economic, technical, organizational and production reasons ( ETOP).

“We will not require anyone to fulfill the impossible,” said the minister after recalling that the extension of the ERTE entails a commitment to maintain jobs for six months from the restart of activity, and that otherwise the company must return the amount of exemptions enjoyed.

“This safeguard clause takes care that some companies, which are at risk of bankruptcy, will not be able to fulfill this commitment,” Díaz recalled, after assessing that the new ERTE have been agreed in the Social Dialogue, with employers and unions. , and that it continues working this Wednesday to adapt them to the “better” normality.

“The social agents are destined to occupy a central place,” he said, at the same time that he appreciated that they have “managed to park their legitimate differences.”

For Díaz “that example, that of joining efforts to solve the problems of citizenship” is the one that political parties must follow.

He recalled that the ERTE, depending on the circumstances, may be extended beyond June 30, as well as exemptions to companies and unemployment benefits if so negotiated by the social partners and ratified by the Council of Ministers.

“The norm foresees the possibility of the exemptions being extended to ERTEs due to ETOP that, until now, had been left out of these benefits. The exemptions will thus be able to accommodate new situations that require incentives and support from the State,” affirmed.

Díaz has described the ERTE as an “evolutionary, adaptable, incentive and guaranteeing a good use of public funds” standard by including commitments and has defended it as an instrument to accompany some companies that are experiencing difficulties once the health emergency is overcome.

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