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Labor, Covid Measures, 30/04/20

COVID-19. What happens with the extension of the ERTEs due to force majeure?


 

The SEPE (Spanish Public Employment Service) is automatically extending all benefits derived from temporary layoffs (ERTEs) due to force majeure that had an end date of May 2nd or earlier. It is not necessary to request extensions if this was already indicated in the application. Meanwhile, the Government is considering extending the ERTEs due to force majeure beyond the state of emergency and has also confirmed that it will request a further 15-day extension.

Companies are starting to consider how to deal with the period immediately following the end of the state of emergency, which, unless further extended, ends on May 9th.

Most of the temporary layoff plans (ERTEs) filed during the state of emergency were due to force majeure. The duration of this type of measure is linked to the length of the state of emergency, so these plans and their effectiveness will expire when it ends, leaving companies without the flexible support they have been receiving.

If your company processed a temporary layoff (ERTE) due to force majeure to deal with the economic and social impact of Covid-19, indicating the end date of the state of emergency as the specific end date, and since this state has been extended, you now do not know if you should notify the Labor Authority (SEPE) of the extension of the ERTE indicating the new end date of the state of emergency as the final date.

Please note that you do not need to request an extension of the authorization granted; it is unnecessary. For these purposes, there is no need to request extensions of the ERTE (Temporary Layoff Plan) if it was already indicated in the application that it would be in effect during the state of emergency.

This situation applies both to ERTEs in which there was an express resolution and to those that were resolved by positive administrative silence.

The SEPE will automatically extend all benefits derived from ERTE due to force majeure that had an end date of May 2 or earlier.

 

What happens if a worker returns to work permanently, thus no longer being covered by the ERTE (Temporary Employment Regulation File)?

The company must report its termination through the corresponding form, which can be found on the SEPE website, at http://www.sepe.es/HomeSepe/COVID-19/información-empresas.html, in the section "Communication of termination of ERTE benefits" so that the benefit is interrupted.

If the entire workplace resumes normal operations, all employees must report the end of the ERTE ( Temporary Layoff Plan), even if the state of emergency is extended. This report must be submitted using the corresponding form in the "Notification of Termination of ERTE" section. If, between the start of the ERTE due to force majeure and the end of the state of emergency, there are employees who have had or will have workdays but remain on ERTE, the periods of activity for each individual must be reported through the certific@2 on the SEPE (State Public Employment Service) website.

 

What will happen after the state of emergency?

Finally, we would like to inform you that the Government is considering extending the temporary layoff schemes (ERTEs) due to force majeure beyond the state of emergency to prevent companies from resorting to dismissals in the face of activity restrictions, thus extending their initial validity. This was confirmed by the Prime Minister, Pedro Sánchez, at the press conference following the Council of Ministers meeting on April 28th, which approved the plan for the "Transition to a New Normal." Sánchez also confirmed that he will request a further 15-day extensionof the current state of emergency, which would last until May 24th.

 

In any case, we will keep you informed of any new developments that are approved in this regard.

You can contact this professional office for any questions or clarifications you may have.

Warm regards,

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