Since the declaration of the health crisis situation in Spain due to the Coronavirus or Covid-19, there has been a succession of publications in the BOE with the main measures that Spanish Government is entering into force in terms of labour updates.
Many companies have been overwhelmed by this crisis and have been forced to take urgent action regarding management, completely changing the daily lives not only of employees but also the environment and reality of the companies themselves.
In the current context, Real Decreto-Ley 8/2020 of 17 March, which approving extraordinary measures, extends the measures already established with a far-reaching and extensive economic and social package, with the goal of helping to avoid a prolonged economic impact beyond the health crisis, giving priority to protecting the families, self-employed and companies most directly affected.
These are some of the main measures affecting companies in terms of employment.
Adaptation of the ERE and ERTE processes
With the publication of this Real Decreto, an attempt has been made to make the ordinary procedure established in Article 47 of the Estatuto de los Trabajadores more flexible. In this sense and in cases where company decides to suspend contracts or temporarily reduce the working day in cases of force majeure, the following particularities will be applied with respect to the ordinary regulations:
- The procedure will be initiated at the company’s request, which will be accompanied by a report on the connection existent between the reduce of activity and Covid-19, as well as, if needed, the corresponding supporting documentation. The company must communicate its request to the workers and transfer the previous report and supporting documentation, if any, to the representation of the workers.
- The existence of force majeure must be verified by the competent labour authority and whatever the number of people affected.
- The resolution of the labor authority shall be issued within five days from the request, following a report, if appropriate, from the Labor and Social Security Inspectorate, and shall be limited to verifying the existence, where appropriate, of the force majeure alleged by the company, which shall decide on the application of measures to suspend contracts or reduce the workday, which shall take effect from the date of the event causing the force majeure.
- The report of the Labour and Social Security Inspectorate, whose request shall be optional for the labour authority, shall be issued within a non-renewable period of five days.
Extraordinary contribution measures
Exemption of the companies from the payment of the fees corresponding to the business contribution, as well as the fees for the concepts of joint collection while the period of suspension lasts. This exemption from contributions will only be 100 % for companies with less than 50 employees on 29 February 2020. For companies with 50 employees or more, it will be 75 %. The contribution relating to the working person will be maintained, so that the period of suspension will count for contribution purposes.
Exemption from contributions will be applied by the General Treasury of Social Security at the request of the employer, after communication of the identification of the workers and the period of suspension or reduction of the working day. For the purposes of control of the exemption from contributions, it shall be sufficient to verify that the Public State Employment Service recognises the corresponding unemployment benefit for the period in question.
Coronavirus crisis is posing significant challenges for all companies and in this context information is essential. At Auxadi we are experts in providing value added services in accounting, tax compliance and international payroll management. If you need more information, please do not hesitate to contact us.