ERTE’s extensions until 30 September are underway

The measure, which was a unanimous clamour from the whole sector, also affects the self-employed, who will extend the aid until September and include seasonal workers

The Temporary Employment Regulation Schemes (ERTEs) will be extended for the time being until 30 September next, after an agreement has been reached between the Government, employers and trade unions. The measure, which was a unanimous demand of the tourism sector, will allow the ERTEs to be extended in the coming months, although with different exemptions. Among the novelties of the agreement signed, the ERTE for economic, technical, organizational and production reasons (ERTE ETOP) will also benefit from the same exemptions. Furthermore, in case of COVID-19 outbreaks that have an impact on companies, there will also be exemptions.

The so-called transition ERTES are thus regulated by Royal Decree Law 24/2020, published in the BOE on 27 June, which includes an exemption from contributions of 70% in July, 60% in August and 35% in September, in the case of companies with fewer than 50 workers, while for those with more than 50 employees, the exemptions will be 50% in July, 40% in August and 25% in September.

The rule also establishes that the workers of the affected companies will not be able to work overtime, establish new outsourcing of the activity or arrange new contracts, whether direct or indirect, during the application of these ERTEs.

The only exception to the new hiring (and prior information to the representatives) is when the employees are not able, due to training, qualification or other objective and justified reasons, to carry out the entrusted functions.

Self-employed workers: the aid is extended until September and includes seasonal workers
The self-employed and seasonal self-employed, who had been excluded from the aid because they were not registered when the state of alert was declared, will also benefit from this extension of the ERTEs. Thus, on the one hand, the beneficiaries of the extraordinary benefit existing until now, 1.4 million at the end of May, may apply for the ordinary benefit due to cessation of activity, provided that they prove a reduction in turnover of 75% in the summer quarter – from July to September – compared to the same period last year.

To do this, the Social Security authorities explained, they will not need to wait until the end of the quarter but can apply for the ordinary benefit when they consider that they meet the requirements and provide documentary proof of this at the end of the quarter.

Also included is an extension of the exemption of the fees for self-employed people who have been receiving this extraordinary benefit: they will not pay the July fee and will have a 50% exemption in August and 25% in September.

Translated with (free version)