Government measures in key jurisdictions 5th edition - Flipbook - Page 127
Spain
Employment
What financial
support is the
government
providing
to businesses
and to individuals
on employment
•
Royal Decree Law 34/2020 (“RD 34/2020”) has extended the application deadline for ICO
guarantees from December 31, 2020 to June 31, 2021.
•
For more information, please visit: Royal Decree-Law 8/2020 of March 17, 2020 launches
urgent and extraordinary measures to confront the economic and social impact of Covid19 and Preserving and increasing liquidity in the time of Covid-19 and Covid-19:
Recommendations for accessing the financing facilities offered under Royal Decree-Law
8/2020 and Release of two new ICO guarantee facility tranches amounting to Ä2,550
million for companies in the process of fulfilling an arrangement with creditors.
•
Extension of furloughs procedures (“ERTEs”) due to force majeure until March 31,
2021. Royal Decree Law 2/2021, that modifies Royal Decree Law 18/2020 (“RD
18/2020”) and Royal Decree Law 24/2020 (“RD 24/2020”), allows the ERTEs due to
force majeure, as well as the exemptions from social security payments to be extended
until May 31, 2021 and also defines, inter alia, new exemptions in relation to social
security contributions, the scope of the job retention obligation, as well as certain
restrictions on the distribution of dividends of companies that have used an ERTE due to
force majeure. For further information, please visit here.
•
Furlough procedures (“ERTEs”) as a temporary solution: The conditions for
processing ERTEs have eased and can be processed much quicker. ERTEs can be
processed in case of force majeure and economic, technical, organisational and
production-related grounds arising from Covid-19. On May 1, 2020 the Spanish
Directorate General of Labour (Dirección General de Trabajo) issued an interpretation
report related to the gradually cease of force majeure furloughs. For more information,
please visit here.
•
Exemption from contributions in the case of ERTEs due to force majeure: There is a
full exemption from the employer’s share of social security contributions for companies
with fewer than 50 employees and a 90% exemption for companies with 50 or more
employees, until May 1, 2021.
•
ERTEs due to limitation to the normal development of the activity: There is a
possibility of requesting an exemption from the employer’s share of social security
contributions related to employees under ERTEs, due to an activity hindrance reason,
starting from February 1, 2021 until May 31, 2021, as follows:
a. an exemption equal to 100%, 90%, 85% and 80% of the employer’s share of social
security contributions, for the months of February, March, April and May 2021,
respectively, applicable to companies with less than 50 employees; and
b. an exemption equal to 90%, 80%, 75% and 70%, of the employer’s share of social
security contributions, for the months of February, March, April and May 2021,
respectively, applicable to companies with 50 or more employees until May 1, 2021.
•
Obligation to maintain employment: The extraordinary employment-related
measures are subject to the company’s obligation to maintain employment for a
period of 6 months following the date of resumption of the company’s activity.
•
Rights to adapt and reduce working hours: This measure is addressed to
employees who evidence duties of care with respect to their spouse or equivalent
and relatives up to the 2nd degree of consanguinity because of Covid-19.
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