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.