NEW LABOR AND ECONOMIC MEASURES APPROVED IN THE FACE OF COVID-19
On March 17, RD Law 8/2020 was published in the BOE, on extraordinary urgent measures to face the economic and social impact of COVID-19.
Of all the published measures, those that most immediately affect the operation of companies and freelancers are the following:
EXTRAORDINARY BENEFIT FOR CESSATION OF ACTIVITY
This benefit is exceptional and is valid for one month from the entry into force of the State of Alarm (March 14). If the state of alarm is extended for more than one month, the self-employed worker will have the right to receive this benefit until the last day of the month in which the state of alarm ends.
What does this benefit consist of?
The self-employed worker will have the right to receive 70% of his regulatory base.
Regarding the payment of the self-employed fee, the fees should not be paid during the validity of the measure.
- Be registered in the Special Regime for self-employed workers and be up to date with the payment of Social Security contributions.
- That their activity is included in those that have had to cease temporarily and mandatory due to the State of Alarm.
- In the event that your activity is not included in those that have been forced to close due to the Alarm Status, a 75% reduction in your billing must be accredited compared to the average of the last 6 months.
COMPANIES AND SELF-EMPLOYED WITH WORKERS
TEMPORARY EMPLOYMENT REGULATION FILE (ERTE)
For all those companies and freelancers that have workers hired in the General Social Security Scheme and have been affected by the State of Alarm, exceptional measures have been approved to carry out suspensions of contracts and reductions in working hours on a temporary basis due to the force majeure of this situation.
This measure is called ERTE (Temporary Employment Regulation File). The Government has made their request more flexible due to force majeure caused by the temporary closure of businesses.
- During the period of the ERTE, the worker will receive an unemployment benefit that will be 70% of his contribution base.
- During this period, the company will not have to pay the Social Security contributions of its workers.
- All workers affected by the ERTE will have the right to receive unemployment benefit, even if they do not have the minimum contribution period required.
- Be up to date with the payment of Social Security contributions.
For the processing of an ERTE, each case in particular must be studied, since, despite the flexibility that the Government has provided in its application, in addition to the preparation of all the required documentation, a report must be prepared that accredits the circumstances by which are intended to adopt these measures so that later, the labor authority approves this ERTE. At Ennumera, we will analyze each case in particular and advise you in a personalized way.