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How do ERTES look after September 30, 2021?

With the approval of the Royal Decree-Law 18/2021 of September 28, of urgent measures for the protection of employment, economic recovery and improvement of the labor market, which, among other measures, includes the new extension of the ERTES from October 1, 2021 until February 28, 2022.

What type of ERTES are extended?

  • ERTE due to Force Majeure regulated by RD-Law 8/2020.
  • ERTE due to impediment of activity regulated by RD-Law 24/2020, by RD-Law 30/2020 and by RD-law 2/2021.
  • ERTE due to impediment or limitations of activity regulated by RD-Law 11/2021.

Are the Ertes automatically extended?

No, you must submit an application to the Labor Authority between October 1 and 15. This request must be accompanied by a list of the hours and days suspended between the months of July and September for each of the workers. The Labor Authority has a period of 10 business days to issue a resolution If, after this period, no ruling is made on the matter, the extension will be deemed to have been approved.

If the application is not submitted within the established period the ERTE will be terminated and will not be applicable from November 1, 2021

What requirements do companies that apply for ERTES have to meet?

  • It's prohibited the realization of overtime and outsourcing.
  • The employment safeguard is maintained. Companies that apply exemptions will be obliged to a new 6 month maintenance period.
  • The calculation of temporary contracts and training contracts is interrupted who have been affected by an ERTE.
  • Distribution of dividends is prohibited and access to this aid is restricted for companies domiciled in tax havens.

What exemptions apply to companies in ERTE?

In the case of companies with ERTE for activity impediment, the exemption will be 100%. .

For companies with ERTE activity limitation, the exemption will be conditional on whether or not the company offers training to its workers, in accordance with the following rules:

  • Companies with ten or more registered workers as of February 28, 2020: 40% if no training is offered; 80% does offer training.
  • ANDcompanies with less than ten workers discharged as of February 28, 2020: 50% if training is not offered; 80% does offer training.

RD-Law 18/2021 iIt also includes special measures for the island of La Palma which has been affected by the volcanic eruption in the Cumbre Vieja area.

Labor advisor at Asinte International Advisory Office

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