Royal Decree-Law 18/2021, of September 28, on urgent measures for the protection of employment, economic recovery and improvement of the labour market.

The most relevant clarifications and provisions are as follows:

I. Extension of the current ERTEs (temporary layoffs ) during October 2021.

An extension of the current ERTEs model is established until October 31, 2021.

II. New ERTEs as from November 1, 2021 conditioned to the submission of an application.

• An extension of the ERTEs related to the pandemic crisis is introduced until February 28, 2022, subject to the presentation of an application and complementary documentation before the labour authority. In the absence of an express resolution, the extension will be deemed to have been granted by administrative silence.

• Furthermore, the Royal Decree-Law establishes benefits in the contribution for the companies which apply ERTEs linked to the pandemic situation and which carry out training actions in favour of the employees affected by such measure. In this regard, the training must be coordinated by the Companies with the SEPE (State Public Employment Service) and will have a duration of 30 hours for companies between 10 and 49 employees and 40 hours for companies with more than 50 employees. The exonerations of the extended ERTEs are as follows:

In the case of ERTE due to impediment, the exemptions for all companies will be 100%.

• An extension of the complementary contents related to the distribution of dividends, fiscal transparency, the safeguarding of employment, the prohibition of overtime, new hiring and outsourcing, as well as the amount of the unemployment benefit at 70% of the regulatory base is agreed.

• The so-called “zero counter” is covered. That is to say, the time spent in unemployment since September 2020 will not be counted when a dismissal for any reason occurs after December 1, 2023.

• Finally, with regard to permanent discontinuous employees, the extraordinary unemployment protection measures are extended and the zero counter is guaranteed for this group.

Beatriz Corral
Employment Area