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The impact of COVID-19 on the global economy is unprecedented, the forced closure of many companies added to the lack of demand for goods, products and services has devastated employment worldwide.

Within a matter of weeks, employers and their directors have had to let go of, if not all, most of their employees. This situation has proven difficult for employees, but no less so for their employers, who on condition of the countermeasures that they carry out, cost-cutting and avoiding future liabilities, they will manage [ or fail] to survive the present situation and keep their businesses afloat.

That said, and in consideration of the considerable volume of regulatory amendments passed and proposed, a solid understanding of both labour and social security existing regimes, in addition to an adequate workforce and human resources management, should enable and guarantee a contained manageable future and a realistic one for operating businesses.

MOST PRESSING ISSUES

PAID LEAVE

The Royal Decree-Law 10/2020 provides paid leave, [subject to the relevant qualifying requirements], in order to restrict mobility as of March 30th until this past April 9th (both inclusive).

A cut in working hours compensation policy shall be determined within a period of 7 days (with effect from the 10th); should this not be the case; the above period shall compute as effective working hours.

Ultimately, any modification of the current annual calendar implies and is an amendment of conditions that shall be expressly agreed upon.

ERTES – (Temporary suspension of employment contract due to operational reasons.)

As paid leave is no longer in effect as of the 9th of April, since last Monday or Tuesday (13/14 April), depending on the autonomous region, two further available options have been provided, depending on the volume of productivity:

  • ERTE: submitting an ERTE for objective causes or force majeure, depending on the applicable circumstances, to affect the whole staff or part of it.
  • NORMALITY: regaining regular productivity levels, adjusting the calendar to working hours compensation agreement, and in any case, guaranteeing and prioritizing all precautions to secure workforce safety.

BUSINESS REINSTATEMENT PROTOCOLS

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