Royal Decree-Law 24/2020, of June 26, on social measures to reactivate employment and protect self-employment and competitiveness in the industrial sector.
The Government has published those measures to be put in place in order to continue facilitating an adequate transition that enables the gradual recovery of business activity as well as the recovery of general economic activity.
We continue to highlight the main points.
The temporary employment regulation files (ERTEs) that have been put in place due to the COVID-19 crisis before the publication of this RDL 24/2020 will be applicable until the 30th September 2020.
Companies who have employees included in these ERTEs must reincorporate staff in accordance with their needs to carry out their business activity, giving priority to reduction on working hours and must be communicated within a period of 15 days from when the reincorporation is to take place.
No overtime may be carried out; new outsourcing of the activity may not be established and new contracts may not be arranged, whether direct or indirect, during the application of the ERTE referred to in this article. The only time that this would be permitted is if there is no-one included in the ERTE that has sufficient training or if the Company has other objective and justified reasons.
The conditions of unemployment benefit for staff will remain in place until the 30th September in accordance with article 25 of RDL 8/2020. However if the ERTE has been applied due to economic, technical or productive reasons then the Company must present a collective application for staff unemployment benefit within 15 days.
The 100% exemption of social security for staff in the ERTE will be reduced to 70% in July, 60% in August and 35% in September. For those Companies with more than 50 employees this will be 50% in July, 40% in August and 25% in September.
However, if the ERTE in place is partial then during July, August and September there will be a 60% exemption of Social Security for the member of staff that have been reincorporated and a 35% exemption for those staff that remain in the ERTE. For businesses that has more than 50 employees then this will be 40% exemption of social
security for the reinstated member of staff and 25% for the staff that remain in the ERTE.
COMMITMENT TO MAINTAIN STAFF
Those businesses that have benefited from the exemption of social security due to the ERTE being derived from the COVID-19 continue to have the obligation of maintaining all staff for six months as from when they are reinstated.
FINANCIAL HELP FOR SELF-EMPLOYED
Those self-employed people that have received the Extraordinary Benefit may benefit from the following exemptions of social security; in the month of July, this will remain 100% exempt however in August this will be reduced to 50% exemption and 25% in September, which will mean a savings of more than 500 euros for “autonomos” during the next three months. However, these exemptions are NOT compatible with the extraordinary benefit paid by the Mutua.
For those self-employed that continue to be affected by the pandemic and have been receiving the Extraordinary benefit; they can apply to continue to receive the benefit for the temporary closure of their business or if their turnover has been reduced by 75% in the third quarter compared to the same period in the previous year, so long as the net income does not exceed the amount equivalent to 5.818,75 euros per quarter (1.939,58 euros per month). If you have one or more employees contracted then you must prove you are up to date with your social security obligations in order to receive the Extraordinary Benefit and must continue to keep up these obligations during the time you receive the benefit.
It will be the corresponding Mutua who will pay the benefit and the application for this must take place before the 15th July. They will request the IGIC returns and business tax returns presented in the second and third quarter of 2019 and 2020. If you are in the modular system they will request documentation to show the turnover for these quarters.
While receiving the benefit you must continue to pay your social security contributions. It will be the Mutua who pay along with the benefit the percentage reduction that has been established in the monthly social security contributions.