September 30, 2020

What is an ERTE? How much is charged?



The draft Royal Decree-Law on exceptional measures in labor matters establishes measures such as making ERTEs more flexible for suspension or shorter working hours and recognize the contributory unemployment benefit to those workers who, affected by them, do not meet the minimum contribution requirement.

ERTE are regulated in art. 45, 47 and 51 of Royal Legislative Decree 1/1995, of March 24, which approves the revised text of the Workers’ Statute Law, which establishes as causes for suspension of the employment contract, among others, the motivated by economic, technical, organizational or production causes or derived from temporary force majeure.

The draft of this Royal Decree specifically defines what will be understood by overwhelming force in the current circumstances, that is, activity losses derived from government measures taken as a consequence of the health crisis, including the alarm status, which implies the suspension or cancellation of activity, the temporary closure of premises with public influx, restrictions on public transport and, in general, of the mobility of people or goods; lack of supplies or extraordinary situations due to contagion of the workforce or preventive isolation, which are duly accredited.

What is an ERTE?

The Temporary Employment Regulation Files (ERTE) are one of the measures included in the labor regulations and which companies can take advantage of in exceptional situations and under duly justified causes.

Article 47 of the Workers’ Statute defines them as a suspension of temporary contracts, which can also translate into a reduction in working hours.

What types of ERTE are there?

Royal Decree 1483/2012, of October 29, regulates three types of procedures: collective dismissal, suspension of contract or reduction of working hours.

How much is charged?

During this time the ERTE lasts, the worker receives the unemployment benefit that corresponds to him, that is, 70% of the regulatory base during the first six months unemployed, and 50% from the seventh.

The employer will not have to pay compensation, but will reinstate the affected workers once the period of time that has been stipulated ends and must continue to pay 100% of Social Security contributions with respect to the company fee.

In addition, in this case, the Government has established that the time in which the worker collects the benefit in order to consume the maximum period of perception, which is known as a “counter to zero”, will not be computed.

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