The Government will extend the ERTE linked to Covid for a month but cuts the exemptions for companies



The companies will have one more month to adapt the current temporary employment regulation files (ERTE) to the new RED Mechanism agreed in the labor reform. Despite this, the Executive will begin to cut the exemptions from Social Security contributions for companies during the transition month. The Government confirmed today Monday to the social agents that it will approve a one-month extension tomorrow in the Council of Ministers to extend the validity of the ERTE Covid linked to the pandemic, according to sources from the negotiation.

Consequently, the ERTE Covid, whose validity expired on February 28, will be extended until March 31. The Executive already promised at last week's meeting to put on the table "an adaptation proposal" to carry out an orderly transition to the approved mechanism in the labor reform.

There will also be exceptions. In the case of workers suspended from employment due to the eruption of the volcanothe transition will be made automatically to the ERTE category due to force majeure and the same conditions will be maintained until June 30.

Yes there will be changes and cuts in exemptions from Social Security contributions for companies during the transitional period. During the month of March, fee exemptions drop from the current 80% to 60% in companies that have training plans, according to negotiation sources. In organizations without training, the exemptions will go to 20% in companies with 10 or more workers and 30% in the case of having ten or fewer workers, which represents a reduction of 20%. The exoneration for force majeure ERTEs will be 90%.

After this transition periodAs of April, the new ERTE scheme included in the labor reform, the so-called RED Mechanism, will be activated. As reported by ABC, the new mechanism will have two modalities: a "cyclical" one, with a macroeconomic situation that makes it necessary to approve stabilization instruments and with a maximum duration of one year; and «other sectoral», when a certain sector undergoes changes that generate professional transition needs.

In mid-February, the number of workers who continued under the umbrella of an ERTE stood at 104,363, according to data communicated last Friday by the Minister of Inclusion, Social Security and Migration, José Luis Escrivá. The Covid ERTEs continue to be concentrated in certain sectors, such as travel agencies (10.8% of their affiliates); air transport and accommodation services (8% in both cases); games of chance and bookmakers (6%); graphic arts (4%); artistic activities (3%), and hospitality (2%).

Sectoral modality

Last week, the Government already announced that it will launch the first of the sectoral ERTEs, which will include travel agencies, one of the activities hardest hit by restrictions after two years of the pandemic. This qualification will be carried out in a new Council of Ministers, according to union sources. In addition, the Second Vice President of the Government and Minister of Labor and Social Economy, Yolanda Díaz, also advanced last Friday her intention to grant a transition month to companies in order to go from applying the current mechanism to the ERTE formulas included in the labour reform.

“We are going to a one-month transition situation so that companies can change the model and go to the direct application of the labor reform,” said Díaz.

For its part, the Spanish Confederation of Travel Agencies (CEAV) met this Monday with the unions and agreed to activate the RED Mechanism for travel agencies. The unions, CEAV explained in a statement, expressed their "full support" for the confederation and have committed themselves, together with CEAV, to work together in this regard.

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