Here on the Costa del Sol, there is a huge number of working expats who still don’t understand exactly what is going on, and what it all means for them.
In order to clarify some basic concepts, here is a general guide to the famous ERTES we keep hearing about.
But what does ERTE mean?
ERTE is an acronym which stands for “Expediente de Regulacion Temporal de Empleo”. It is a temporary workforce restructuring plan that a company can use in order to suspend its employees´ contracts (like a temporary lay-off) or alternatively to cut their hours. The company has to apply for an ERTE, and the Labour Authority will either approve it or deny the right of the company to do one.
The company has to prove that without an ERTE, the viability of the company would be so compromised that it could go bankrupt.
There are two kinds of ERTE:
- Force Majeure causes ( Fuerza mayor).
- Economic, technical, organisational or production causes (causas Economicas, técnicas, organizativas o productivas ETOP)
Although at the beginning it was believed that most of the ERTES would be due to force majeure, the Government and labour authority has changed their view and now just the companies that are forced to close by the general lockdown in Spain (e.g. Hotels, restaurants, bars…) an apply for them. The reason, in my opinion is simple: If the company is allowed to apply for a force majeure ERTE it is released from its obligation to pay its employees´ Social Security.
How do you know your company has applied for an ERTE?
The company has to individually inform every employee who has been included in the ERTE as a result of COVID-19.
The company has to notify both the employees and the Labour Authority at the same time, and to produce a report explaining the consequences the virus has had on the main activities of the company.
So if your employer has applied for an ERTE, you should know about it.
What is the duration of an ERTE?
If the company has applied for an ERTE based on force majeure, the Government has stated that it will last for the duration of the state of emergency.
If it has applied for an ERTE based on Economic, technical, organisational or production causes the expiry date of the ERTE would have to be negotiated.
If it is the case that you have a temporary contract (something very usual in Spain), you will become part of the ERTE until the end date. Your contract will be suspended whilst the ERTE is in force. Once the ERTE has finished, the outstanding period of your contract will be resumed.
How much and how you will get paid?
During the time the ERTE is in force, you will get paid by the SEPE (unemployment benefits) and not from your company.
You will receive 70% of your “base reguladora” during the first six months of the ERTE. From the seventh month you will receive 50%. The base reguladora is based on the last 180 days of gross salary paid.
The government has stated that the maximum amount payable will be 1098.09 € gross.
You don’t have to do anything or notify Social Security that you have been included in an ERTE. The company has to inform the SEPE that you were included in it. However, please note that if you are in Andalusia and you have never been registered as an employment seeker (if you have never claimed unemployment benefit before, this is likely to be you), you need to register first at the SAE (Servicio Andaluz de empleo).
You can do it Here. You can also find more info at the SAE website here.
More info :
You should know also that the time this benefit is received it would not be discounted from your future unemployment benefits in case you lose your job. Also, annual leave is not accrued during the ERTE. The continuity of service can´t be modified.
If you are on Sick leave during the ERTE application, you will continue on this situation until the sickness leave ends. Then you would become part of the ERTE.
Also, remember that there is not any severance compensation since you are not getting fired , is just a suspension of contract. You can also work if you are able to find another job during this difficult time but of course this would affect the subsidy received from the government.
Once the ERTE is finished, you should be contacted and notified by the employer to return to your company.
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