ERTE: File of temporary regularization of employement, effects and consequences

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A Force Majeure, ERTE, consists of the suspension of the employment contracts of the employees who will go on to receive unemployment benefit, which is 75% of their contribution base.

It is important to note that, during the state of alarm, those workers affected do not consume their common unemployment benefit. Even those who are not entitled to unemployment benefit because they do not meet the requirements, i.e. because they have not contributed for a whole year, can also receive this benefit.

One of the key points is that once this state of alarm has passed and the business returns to its activity, it is obligatory for all employees who have had an ERTE to return to their jobs. The employer must maintain the level of employment during the first 6 months, which means that he cannot lay off or reduce working hours.

During the ERTE, the employer does not have to pay the social security contributions of the employees that correspond to the company, although, in case of failure to comply with the obligation to reinstate its employees once the alarm state ends, one consequence will be the obligation to return these bonuses, which involve significant sums, therefore before initiating an ERTE file it is advisable to put yourself in the hands of expert advisors in the field who can study the advantages of initiating an ERTE or dismissing employees, given that if reinstatement is not guaranteed, the sums to be returned are substantial.

Given the situation of confinement, it is the employer’s obligation to inform the unemployment office of the data of each employee affected by the ERTE, in order to properly manage their registration, since it is not possible for employees to make these requests directly or in person.

It is important that, before initiating the application for the ERTE file, you duly inform your employees that their contracts will be temporarily terminated, despite the urgency and immediacy of the situation that has taken many employers by surprise, there are countless doubts on the part of employees who are at home without proper knowledge of their economic and employment situation.

At Pellicer & Heredia we will implement your ERTE application after studying its feasibility, duly informing your staff and managing all queries during the process.

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