01/10/2020.- Thanks to a last minute agreement with all social agents (just two days before the expiration of the current regulation), the Spanish government approved yesterday the extension of the temporary layoffs programs (ERTE) until January 31, 2021.

In the case of the new ERTE modalities, to which companies from any sector will be able to take advantage, two types are distinguished: ERTE due to activity impediment as a result of restrictions adopted by the authorities (for example, nightlife companies), and the ERTE of activity limitation, intended for companies that see their activity altered when a local, regional or state authority limits, for example, capacity and hours.

In the case of ERTEs for Covid19 resurgence, business quotas will be exempted (from October 1^st, 2020). There will be 100% exemptions when the activity of a company with less than 50 employees is halted, and 90% if it has more than 50.

Company exemptions

In the event the Spanish authorities limit the normal development of the business there will be (effective as of September 1^st, 2020) company exemptions of 100% in October for workers affected by the ERTE. This declines to 90% in November, 70% in December and 60% in January 2021 if the company had less than 50 workers on February 29 of this year. If it had more, the deductions will be 90%, 80%, 60% and 50% for each month in the October-January period.

The extension of the force majeure ERTE will consider the sectors most affected by the pandemic, including, of course, the tourism sector.  The ERTE for these sectors will have quota exemptions of 85% for each month of the period October 2020-January 2021, if the company had a staff of less than 50 workers as of February 29 of this year. This will be cut to 75% if it had more than 50 employees.

Should you need any further information regarding Payroll in Spain, do not hesitate to contact our team at Avantges.