Royal Decree-Law 18/2020, of May 12, on social measures in defense of employment, has been published. This decree extends temporary layoff schemes (ERTEs) until June 30 and establishes new provisions regarding unemployment protection and social security contributions related to ERTEs due to force majeure and COVID-19-related economic, technical, organizational, or production-related causes (ETOP). The regulation introduces the category of partial force majeure ERTE, allowing companies to restart their activity by combining active and suspended workers, and maintains exemptions from social security contributions.
We inform you that the Royal Decree-Law 18/2020, of May 12, on social measures in defense of employment, was published in the Official State Gazette (BOE) on May 13, with effects from May 13, 2020, extending the ERTEs due to force majeure until June 30, 2020 for those companies that cannot resume their activity due to force majeure.
Companies that are able to partially resume their activity may proceed to reintegrate employees affected by temporary layoffs (ERTEs), prioritizing adjustments in terms of reduced working hours. Companies must notify the labor authority of any total withdrawal from the ERTE within 15 days and inform the State Public Employment Service (SEPE) of any changes in the data of employees included in these files.
This means that these companies and self-employed individuals will continue to benefit from an exemption from Social Security contributions. If the company has 50 or more employees, the exemption remains at 75%.
In order to adapt the regulations to the de-escalation phase, Royal Decree-Law 18/2020 establishes a new category of temporary layoff scheme (ERTE), called partial force majeure, which will also remain in effect until June 30. This measure will allow companies to reinstate part of their workforce while keeping another part on suspended contracts.
The Royal Decree-Law also guarantees the commitment of companies to maintain employment within six months from the date of resumption of their activity , understanding this to mean the effective reinstatement to work of people affected by the file, even if this is partial or only affects part of the workforce.
- Special provisions applicable to ERTEs Force Majeure COVID-19 (art. 22 of Royal Decree-Law 8/2020, of March 17) during the de-confinement.
- From May 13, 2020, those companies and entities that had a temporary employment regulation file based on article 22 of Royal Decree-Law 8/2020, and were affected by the causes referred to in said precept that prevent the restart of their activity, will continue in a situation of total force majeure derived from COVID-19, for as long as they last and in no case beyond June 30, 2020.
- Companies and entities that have a temporary employment regulation file authorized based on article 22 of Royal Decree-Law 8/2020 will be in a situation of partial force majeure derived from COVID-19, from the moment in which the causes reflected in said precept allow the partial recovery of their activity, until June 30, 2020.
- These companies and entities must proceed to reinstate the workers affected by temporary employment regulation measures, to the extent necessary for the development of their activity, prioritizing adjustments in terms of reduced working hours.
- Companies and entities must notify the labor authority of the total waiver, if applicable, of the authorized temporary employment regulation file, within 15 daysfrom the effective date of that waiver.
- Notwithstanding the foregoing, the waiver by these companies and entities of the temporary employment regulation files or, where appropriate, the suspension or regularization of the payment of the benefits that derive from their modification, will be carried out after prior notification by these to the State Public Employment Service (SEPE) of the variations in the datacontained in the initial collective application for access to unemployment protection.
- In any case, these companies and entities must inform the SEPE of any variations that refer to the termination of the application of the measure with respect to all or part of the affected persons, either in the number of these or in the percentage of partial activity of their individual working day, when the flexibility of the restriction measures that affect the activity of the company allows the return to effective work of those persons.
- Procedures for suspension and reduction of working hours due to economic, technical, organizational and production (ETOP) reasons communicated after the de-confinement.
Article 23 of Royal Decree-Law 8/2020, of March 17, will apply to temporary employment regulation procedures based on economic, technical, organizational and production (ETOP) causes initiated after the entry into force of this Royal Decree-Law and until June 30, 2020, with the following special provisions:
- The processing of these files may be initiated while a temporary employment regulation file referred to in point 1 above is in force.
- When the temporary employment regulation file for ETOP is initiated after the completion of a temporary employment regulation file based on the cause provided for in article 22 of Royal Decree-Law 8/2020, the effective date of the former will be retroactive to the date of completion of the latter.
- Temporary employment regulation files in force on the date of entry into force of this royal decree-law will continue to be applicable under the terms provided in the final communication of the company and until the term referred to therein.
- Extraordinary measures regarding unemployment protection.
A) The unemployment protection measures provided for in sections 1 to 5 of article 25 of Royal Decree-Law 8/2020, of March 17, will be applicable until June 30, 2020.
B) The extraordinary measures regarding unemployment protection regulated in Article 25.6 of Royal Decree-Law 8/2020, of March 17, will be applicable until December 31, 2020.
- Extraordinary measures regarding social security contributions related to the COVID-19 Force Majeure Temporary Layoff Scheme.
The General Treasury of the Social Security (TGSS) will exempt employers and joint collection entities from paying their social security contributions for May and June 2020 , provided they had fewer than 50 employees, or equivalent workers, registered with Social Security as of February 29 , 2020. If these companies and entities had 50 or more employees, or equivalent workers, registered with Social Security, the exemption will cover 75% of the employer's contribution.
The two possible ERTE models, total or partial, entail different exemptions in the payment of employer contributions.
- Temporary layoff due to total force majeure: Regarding the May and June contributions, there will be a 100% exemption for companies with fewer than 50 employees and a 75% exemption for those with more.
a) Companies with fewer than 50 employees: There will be a 100% exemption.
b) Companies with more than 50 employees:A 75% exemption will be applied
- Partial force majeure ERTE:
– For the workers who return to their jobs
a)Companies with fewer than 50 employees:There will be an 85% exemption in May and a 70% exemption in June
b) Companies with more than 50 employees:There will be a 60% exemption in May and a 45% exemption in June.
– For the workers who do not return to their jobs
a) Companies with fewer than 50 employees:There will be a 60% exemption in May and a 45% exemption in June.
b) Companies with more than 50 employees:There will be a 45% exemption in May and a 30% exemption in June
The exemptions in the contribution will be applied by the TGSS at the request of the company, after prior notification of the situation of total or partial force majeure, as well as the identification of the affected workers and the period of suspension or reduction of working hours.
In order for the exemption to apply, this communication will be made, for each contribution account code, by means of a responsible declaration that must be submitted, before the calculation of the corresponding contribution settlement is requested, through the Electronic Data Transmission System in the field of Social Security (RED System), regulated in Order ESS/484/2013, of March 26.
For the purposes of monitoring these exemptions from contributions, it will be sufficient to verify that the SEPE proceeds to recognize the corresponding unemployment benefit for the period in question.
The General Treasury of Social Security may establish the necessary communication systems with the State Public Employment Service to compare the content of the declarations of responsibility and the periods of enjoyment of unemployment benefits with its databases.
The exemptions in contributions will not affect workers, and the period in which they are applied will continue to be considered as effectively contributed for all purposes, without the provisions of Article 20 of the General Social Security Law being applicable.
The exemptions will be covered by the Social Security budgetin the case of the employer's contribution for common contingencies, by the collaborating mutual insurance companies in the case of the employer's contribution for professional contingencies, by the State Public Employment Service in the case of the employer's contribution for unemployment and professional training, and by the Wage Guarantee Fund in the case of the contributions that finance its benefits.
- Extension of the ERTE (Temporary Employment Regulation Files) due to COVID-19 Force Majeure, and of the extraordinary measures regarding unemployment protection and social security contributions
By agreement of the Council of Ministers, an extension of the ERTE Force Majeure COVID-19 may be established , taking into account the restrictions on activity linked to health reasons that remain in place on June 30, 2020.
This agreement may, in turn, extend the exemptions in matters of contributions, or extend them to the temporary employment regulation files based on objective causes, as well as extend the unemployment protection measures provided for in article 25.1 of Royal Decree-Law 8/2020, of March 17, for the period of time and percentages that are determined therein.
6. Planned regulatory changes
Regarding Royal Decree-Law 8/2020, of March 17, on urgent extraordinary measures to address the economic and social impact of COVID-19, the following modifications are planned:
– Section 1 of Article 24 of Royal Decree-Law 8/2020, of March 17.
"1. In the files of suspension of contracts and reduction of working hours authorized on the basis of temporary force majeure linked to COVID-19 defined in article 22, the General Treasury of the Social Security will exempt the company from the payment of the employer contribution provided for in article 273.2 of the Consolidated Text of the General Social Security Law, approved by Royal Legislative Decree 8/2015, of October 30, as well as that relating to the contributions for joint collection concepts, during the months of March and April 2020, when, on February 29, 2020, it had less than 50 workers, or assimilated to employees, in a situation of registration in the Social Security. If the company has 50 or more employees, or those treated as employees, registered with Social Security, the exemption from the obligation to contribute will reach 75% of the employer's contribution
– New section 5 to article 24 Royal Decree-Law 8/2020, of March 17
"5. The exemptions regulated in this article shall be charged to the Social Security budgets in the case of the employer's contribution for common contingencies, to the collaborating mutuals in the case of the employer's contribution for professional contingencies, to the State Public Employment Service in the case of the employer's contribution for unemployment and for professional training and to the Wage Guarantee Fund in the case of the contributions that finance its benefits." - Amendment of the sixth additional provision of Royal Decree-Law 8/2020, of March 17.
– New wording of Additional Provision 6 of Royal Decree-Law 8/2020, of March 17. Safeguarding employment.
- The extraordinary measures in the labor field provided for in article 22 of this royal decree-law will be subject to the commitment of the company to maintain employment for a period of six months from the date of resumption of activity, understanding by this the reinstatement to effective work of persons affected by the file, even if this is partial or only affects part of the staff.
- This commitment will be considered breached if any of the persons affected by these proceedings are dismissed or their contracts are terminated.
This commitment will not be considered breached when the employment contract is terminated due to a disciplinary dismissal deemed justified, resignation, death, retirement, or total, absolute, or severe permanent disability of the employee, nor due to the end of the work period for employees with fixed-term intermittent contracts, provided this does not constitute a dismissal but rather an interruption of the contract. Specifically, in the case of temporary contracts, the commitment to maintain employment will not be considered breached when the contract is terminated due to the expiration of the agreed term, the completion of the work or service that constitutes its purpose, or when the contracted activity cannot be carried out immediately.
- This commitment to maintaining employment will be assessed taking into account the specific characteristics of the different sectors and the applicable labor regulations, considering, in particular, the specificities of those companies that have a high variability or seasonality of employment.
- The commitment to maintain employment will not apply to companies where there is a risk of insolvency proceedings under the terms of article 5.2 of Law 22/2003, of July 9, on Insolvency.
- Companies that fail to comply with this commitment must reimburse the full amount of the contributions from which they were exempted, plus the corresponding surcharge and late payment interest, as established in the Social Security collection regulations, following actions by the Labor and Social Security Inspectorate to verify the non-compliance and determine the amounts to be reimbursed
Amendment to Royal Decree-Law 9/2020, of March 27, adopting supplementary measures in the labor field to mitigate the effects of COVID-19
Final Provision Three of Royal Decree-Law 9/2020, of March 27, which adopts complementary measures in the labor field to mitigate the effects of COVID-19, is modified as follows:
«DF 3.ª Royal Decree-Law 9/2020, of March 27.Entry into force and validity.
This royal decree-law will come into force on the same day as its publication in the "Official State Gazette", maintaining its validity during the state of alarm decreed by Royal Decree 463/2020 and its possible extensions.
Articles 2 and 5 will remain in force until June 30, 2020
You can contact this professional office for any questions or clarifications you may have.
Warm regards,
Do you have any questions about this topic?
Our team of expert advisors will help you resolve any issues related to our services.
Contact us now
A Àmbit Assessor, SL has 40 years dedicated to the tax, comptable and labor consultancy of the Pime.
Latest entries from MGI Àmbit
(see all)
Related
