Government measures in key jurisdictions 4th edition - Flipbook - Page 124
Spain
Employment
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RD 25/2020 has approved a new programme related to the Spanish road fleet of 2020 (Plan Renove), in
order to renew the car fleet and promote the sale of vehicles from June 15, 2020 to December 31, 2020.
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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 Covid-19, 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
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Extension of furloughs procedures (“ERTEs”) due to force majeure until September 30, 2020. Royal
Decree Law 24/2020 (“RD 24/2020”), that modifies Royal Decree Law 18/2020 (“RD
18/2020”), allows the ERTEs due to force majeure, as well as the exemptions from social security
payments to be extended until June 30, 2020 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. The provision that dismissals on grounds related to COVID-19 cannot be upheld is
also extended until September 30, 2020. There are current discussions to extend the ERTEs, at
least in certain sectors, until the COVID-19 vaccine is in place. For further information, please visit
here.
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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.
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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
workers and a 75% exemption for companies with 50 or more workers.
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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.
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Rights to adapt and reduce working hours: This measure is addressed to workers 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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Preferential nature of teleworking: The Spanish Ministry of Labour is submitting for public
consultation prior to the preparation of a draft regulation consisting on the modification and
elaboration of the conditions for teleworking.
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Sick leave: Sick leave due to COVID-19 infections or preventive isolation is treated as an
occupational accident for the purposes of benefits.
What financial
support is the
government
providing
to businesses and to
individuals on
employment
Government measures in key jurisdictions
124