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COVID Furlough ERTE Spain Update

Posted on 23 April, 202024 April, 2020 by Business Advice Spain

COVID Furlough ERTE Spain Update

During this COVID crisis companies in Spain of all sectors and sizes are turning to furlough or ERTE procedures (“Temporary Employment Regulation Files” or furloughs) to face the situation. Almost four million employees got furloughed under these procedures until the first half of April according to data released by the Spanish Government. This post provides an Update on the COVID Furlough ERTE Spain procedures.

Through an ERTE the company suspends the employee’s employment contract or reduces his workday (with the subsequent proportional salary cut) because of force majeure or for economic, technical, organizational or production reasons. The employee is not fired, but the employment contract is temporarily suspended, i.e. furloughed.

How does that affect the employee? How much and when will he earn? Will he be entitled to vacation? Here are some questions and answers for those affected, employers and employees alike.

We adressed furloughs and ERTEs in earlier posts here and here.

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ERTE Furlough COVID19 Spain

Posted on 2 April, 202024 April, 2020 by Business Advice Spain

The Temporary Suspension of Employment (or “ERTE” abbreviated in Spanish or furlough in English) procedure has been the tool of choice to suspend employment quickly during the Covid19 crisis in Spain. We published an earlier post explaining the ERTE procedure. In this post we provide an update on the situation the furloughs are provoking. After the first Royal Decree that provided for furloughs or ERTEs in its articles 22 (ERTE because of Forece Majeur) and article 23 (ERTE because of economical, technical, organisational and productional causes), a second Decree was issued. The second Decree contains amongst others complimentary measures to facilitate the processing of ERTEs and unemployment benefits that are due during the furlough.

Update on 2 April 2020

According to the Spanish government 620,000 workers have been suspended by Spanish companies from work since the COVID19 crisis began. Sindicates however estimate that more than 1,8 million workers are affected by furloughs. We wrote more on furlough here and here.

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ERTE – Temporary Suspension of Employment

Posted on 16 March, 202024 April, 2020 by Business Advice Spain

(This article was updated here and here) Due to the Corona virus crisis, many Spanish companies (think of airlines, hotels, restaurants, leisure sectors) are now proceeding to suspending employment temporarily. The so called ERTE, or Temporary Suspension of Employment procedure allows employers to suspend work or reduce working hours in case of Force Majeur (the Spanish Ministry of Labor has qualified the Covid19 crisis as such). This procedure is not to be confused with the so called ERE, which has a definitive character, i.e. the employment finishes. In the UK a similar procedure is furlough. Continue reading “ERTE – Temporary Suspension of Employment”