Layoffs of workers and ERTE (Record of Temporary Employment Regulation) are the negative effects of restrictive measures against COVID-19:

On the 17th of March 2020, the Spanish government published Royal Decree-Law 8/2020 on extraordinary urgent measures, to try and alleviate the serious economic situation that emerged in Spain.

Dismissal of workers and difficulties for the self-employed workers and companies:

The Pérez Parras Economists and Lawyers Office are reviewing below the points of greatest interest of this new Royal Decree-Law regarding  companies, workers and freelancers.

What are the aid options, such as extraordinary urgent measures?

• CESSATION OF ACTIVITY: Freelancers could get 70% of the regulatory base for the duration of the State of Alarm. For example, with the minimum self-employed base of 944.40€, a gross benefit of 661.08€ would be paid.

Requirements:

• Exercise one of the activities published in the RD last Saturday, or
• The billing of the month prior to the request for the benefit is 75% lower than that of the previous 6 months (in this case we recommend that it be requested from April).
• Be up to date with all Administrations dues.

Resolution period: 30 business days. However, it will be recognised retroactively from the date of submission of the application.

Contributions during the Cessation of Business Activity:

• There is no need to withdraw from the self-employed regime.
• The self-employed rate will be 17€ for the first 6 months, after which it will be totally free.

WARNING: THE SELF-EMPLOYED WORKER CANNOT PROVIDE ANY SERVICES WHILE HE RECEIVES THIS BENEFIT.

The coronavirus is wreaking havoc in the West, which was not prepared for the enormous social and cultural impact it is causing: layoffs and temporary employment regulations (ERTE).

As you will see below, very different aids are being offered to the self-employed workers, compared to laid-off workers.

• ERTE (temporary suspension of employment contracts): Companies that apply or have applied ERTES (these are temporary layoffs, not definitive ones) to their workers and these have been granted, will be EXEMPT from paying social security contributions, with PRIOR REQUEST TO THE ADMINISTRATION OF THIS EXEMPTION. (We will request it directly once the processed ERTES are granted). In addition, workers will collect unemployment benefit until the State of Alarm disappears, even if they have not met the required contribution period.

Teleworking and teletraining become the great alternative to the social isolation and layoffs and ERTEs that Covid-19 is causing.

• ACCELERATION PLAN: The Government plans to publish a series of short / medium-term aid for SMEs that will be aimed, above all, at helping companies for digitisation and TELEWORK. This Royal Decree only establishes the budget that will be allocated to it, but does not spell out what it will consist of specifically.

In addition to these measures, others have been released in the matter of tax deferrals, moratorium on mortgages of habitual residence, etc… All this, in the interest of avoiding layoffs of workers, and avoiding the helplessness of citizens in situations of poverty.

Should you wish to make any additional inquiry, please contact our office of Economists & Lawyers in Malaga and Nerja  and we will advise and help you accordingly.