On 30 September 2020, Royal Decree-Law 30/2020 of 29 September has been published. The "expected" Royal Decree-Law of "continuity" of the ERTES. Below we will try to explain the regulations to be applied from Thursday 1 October.
Will force majeure ERTES continue to apply from 1/10/2020? The broad answer is Yes, but there are three possibilities:
- If the main activity of the company is listed in the CNAE annex (at the end of the article), the Social Security exemptions are as follows
2. If the activity is related to any of the activities of the CNAE (see annex at the end of the news item), you can also be exempt from the same Social Security percentages as in the previous point. It is considered accredited when in the year 2019 half of its turnover has depended directly on those companies with activity in the CNAE annex.
The application for declaration as a dependent company or as part of the value chain of another company must be submitted to the corresponding labour authority between 5 and 19 October.
3. If the company's activity is not in the CNAE annex and is not related, the workers may remain in the ERTE due to force majeure, but the Social Security contributions will not be exempted.
What are the conditions for ERTES as from 1/10/2020?
1º The amount of unemployment benefits will be maintained.
2º The calculation basis for benefits will remain at 70% of the regulatory base of the worker, who will not see their income reduced.
3º The "counter to zero" is maintained on the unemployment benefit rights of the workers included in the ERTE due to force majeure.
4º People affected by an ERTE will be given preferential attention to receive training courses and specific actions will be implemented for this group.
A new reason for requesting ERTE due to "impediment" or "limitation" of activity is created.
1 Companies in any sector or activity that are prevented from carrying out their activity as a result of new restrictions or measures adopted as of 1 October 2020, both by national and foreign authorities, may avail themselves of the benefits of ERTEs for as long as the impediment or limitation exists.
2º In the case of companies that are prevented from carrying out their activity in any of their workplaces as a result of the health measures, they may request an "ERTE due to impediment".
These companies will be exempted from paying social security contributions during the closure period and until 31 January 2021, qThis will be 100% of the company contribution during the closure period and until 31 January if they have less than 50 employees and 90% if they have 50 employees or more.
3º Companies or entities that see limited the development of their activity in some of their workplaces as a consequence of decisions or measures adopted by the Spanish authorities, they may apply to the labour authority for an "ERTE by limitations".
In this case, the exemptions from social security contributions for suspended workers will be degressive between October 2020 and January 2021 based on the following percentages:
Impediment100% exemption (from October to January) if you have less than 50 employees and 90% (from October to January) if you have more than 50 employees.
Limitation:
Aid for the self-employed as from 01/10/2020
Self-employed workers who were receiving the activity termination benefit provided for in article 9 of Royal Decree-Law 24/2020, of 26 June, on the entry into force of this regulation, may continue to receive it until 31 January 2021, provided that during the fourth quarter of 2020 they maintain the requirements established for its concession.
Self-employed workers who have not received this benefit during the third quarter of 2020 may apply for the activity termination benefit.
Amount of the benefit: 50% of the minimum contribution base for the activity. This may be increased to 70% in the case of a large family. When 2 or more members entitled to the benefit live in the same family unit up to the first degree of kinship, they may only receive 40% each.
Social security contributionsshall be exempt from the obligation to pay social security contributions. Requirements:
- Total suspension of the activity as a consequence of Covid-19 restrictions (by decision of the competent authority) or,
- Revenue reduction of at least 50% in Q4 2020 compared to Q1 2020.
In ERTES force majeure and ETOP: No overtime or outsourcing of new activities or new contracts.
No overtime, no new outsourcing of activity and no new hiring, whether direct or indirect, may take place during the implementation of these ERTEs.
The only exception to new hires (and after informing the representatives) is when employees are unable, due to training, qualifications or other objective and justified reasons, to carry out the functions entrusted to them.
Safeguarding employment
The prohibition of dismissal for objective causes (from COVID-19) is maintained within six months from the presentation of the ERTE and protection of temporary contracts. Therefore, for companies that have already been subject to an ERTE due to force majeure until 30/09/20, they will not be able to dismiss any worker for objective causes for ONE YEAR if they take advantage of the ERTE that this RDL 30/2020 regulates.
Àngels Barceló
Head of labour area
ANNEX
CNAE-09 to which the enterprises specially concerned belong as defined in paragraph 2 of the first additional provision
ID CNAE-09 | CNAE-09 4 DIGITS |
0710 | Extraction of iron ores. |
2051 | Manufacture of explosives. |
5813 | Newspaper publishing. |
2441 | Precious metals production. |
7912 | Activities of tour operators. |
7911 | Activities of travel agencies. |
5110 | Passenger air transport. |
1820 | Reproduction of recorded media. |
5122 | Space transport. |
4624 | Wholesale trade in hides and skins. |
7735 | Rental of air transport means. |
7990 | Other reservation services and related activities. |
9004 | Venue management. |
7729 | Rental of other personal effects and household goods. |
9002 | Ancillary activities to the performing arts. |
4741 | Retail sale of computers, peripheral equipment and software in specialised shops. |
3220 | Manufacture of musical instruments. |
3213 | Manufacture of imitation jewellery and similar articles. |
8230 | Organisation of conventions and trade fairs. |
7722 | Videotape and disc rental. |
5510 | Hotels and similar accommodation. |
3316 | Aeronautical and space repair and maintenance. |
1811 | Graphic arts and related services. |
5520 | Tourist and other short-stay accommodation. |
4939 | types of passenger land transport n.e.c. |
5030 | Passenger transport by inland waterways. |
1812 | Other printing and graphic arts activities. |
9001 | Performing arts. |
5914 | Film exhibition activities. |
1393 | Manufacture of carpets and rugs. |
8219 | Photocopying, document preparation and other specialised office activities. |
9321 | Amusement and theme park activities. |
ID CNAE-09 | CNAE-09 4 DIGITS |
2431 | Cold-drawn. |
5223 | Activities incidental to air transport. |
3212 | Manufacture of jewellery and similar articles. |
5590 | Other accommodation. |
5010 | Maritime passenger transport. |
7711 | Rental of cars and light motor vehicles. |
4932 | Transport by taxi. |
2670 | Manufacture of optical instruments and photographic equipment. |
9601 | Washing and cleaning of textile and leather garments. |
9329 | Other recreational and entertainment activities. |