Economic Measures COVID-19

Economic Measures COVID-19

Estimated/to client/collaborator/a:

With the entry into force of Royal Decree-Law 8/2020, of 17 March, a series of urgent and extraordinary measures have been approved to address the economic impact of the COVID-19 virus. These measures are aimed at strengthening the public health system, supporting the most vulnerable working people and families affected by the situation, guarantee the liquidity of tourism enterprises and support the financing of small and medium-sized enterprises and self-employed persons.

That is why the law firm Kernel Legal, has made a brief summary of the main measures in the workplace.

First, we find the regulation that affects the sector of the self-employed. For these, an extra allowance for cessation of activity is implemented for those affected by the declaration of the state of alarm for the management of the health crisis situation caused by the COVID-19. The amount of the benefit will be the result of applying the percentage of 70% on its regulatory basis, which will be determined according to the average of the bases for which it has contributed during the 12 months continued and immediately prior to the application of the benefit. Where the minimum contribution period for entitlement to the benefit is not established, the amount of the benefit shall be equivalent to 70 per cent of the minimum contribution basis in the Special Social Security Scheme for self-employed or self-employed persons or where applicable, under the Special Scheme for the Social Security of Seafarers.

This benefit shall last for one month, and may be extended, where appropriate, until the last day of the month in which the alarm status ends, if it is extended and lasts for more than one month. The period of receipt shall be understood as the period of contribution and shall not reduce the periods of benefit for cessation of activity to which the beneficiary may be entitled in the future.

In addition, the self-employed person must prove a reduction in turnover by at least 75% compared to the turnover made in the previous semester. Self-employed persons who wish to receive this benefit must always comply with the following requirements:

  1. Be registered and, on the date of the declaration of the state of alarm, in the Special Social Security Scheme for Self-employed or Self-employed Persons or, where applicable, under the Special Scheme for the Social Security of Seafarers.
  2. In the event that its activity is not directly suspended under the provisions of Royal Decree 463/2020, of 14 March, prove the reduction of its turnover by at least 75 percent, compared to that made in the previous semester.
  • Be up to date with the payment of social security contributions. However, if, on the date of the suspension of activity or the reduction in turnover, this requirement is not met, the managing body shall invite the self-employed worker to pay the contributions due within the non-repayable period of 30 calendar days. The regularisation of overdrafts will have full effect on the acquisition of the right to protection.

Royal Decree-Law 8/2020 of 17 March also includes exceptional measures affecting COMPANIES. One of them is the regulation of procedures for suspension of contract and reduction of working time due to force majeure, better known as ERTE.

The suspension of contracts and reductions in working hours (ERTE) that have their direct cause in activity losses as a result of the COVID-19, including the precepts of:

  1. The declaration of a state of alarm, involving suspension or cancellation of activities, temporary closure of public transit facilities, restrictions on public transport and, in general, on the mobility of persons and/or goods, lack of supplies that would seriously impede the regular development of the activity.
  2. Emergency and extraordinary situations due to the contagion of staff or the adoption of preventive isolation measures decreed by the health authority, which are duly accredited, shall be considered as having come from a situation of force majeure, with the consequences deriving from article 47 of the consolidated text of the Workers’ Statute Act, approved by Royal Legislative Decree 2/2015, of 23 October.

For the initiation of the suspension of contracts or the temporary reduction of working hours, it must follow the procedure set out in the regulations governing this type of dossier. First, the procedure must be initiated at the request of the company accompanied by a report on the loss of the activity as a direct consequence of COVID-19, as well as supporting documentation. Subsequently, the company must inform the employees of the decision, submitting the report and supporting documents to the same effect.

Secondly, the existence of force majeure as a direct cause of the suspension of contracts or the reduction of working hours must be proved as previously stated. Always verified by the competent labour authority. Finally, within five days of the request, this labor authority must issue the decision.

The General Treasury of the Social Security will exempt it from the payment of the corresponding business contribution regulated in article 273.2 of the Revised Text of the General Law of the Social Security, approved by the Royal Legislative Decree 8/2015, of 30 October. Profit that in the case of companies on 29 February 2020 had more than 50 workers in a situation of high in the Social Security, will reach only 75% of the obligation to contribute of the business contribution.

Article 13 of Royal Decree-Law No 8/2020 of 17 March provides for a bonus for companies engaged in activities in the tourism sectors, as well as those of commerce and hospitality linked to the tourism sector, to generate productive activity in the months from February to June and to initiate or maintain the occupation of discontinuous permanent workers during those months.

As for the WORKERS affected by the ERTE, they will be granted the right to the contributory unemployment benefit regulated in Title III of the recast text of the General Law on Social Security, approved by Royal Legislative Decree 8/2015, of 30 October, even without the minimum necessary period of paid employment, during the period of suspension of their employment contracts and without being computed for the purposes of consuming the maximum periods of collection established.

The duration of the benefit will be determined by the part of isolation leave and the corresponding high. However, the date of the causative event will be the one in which the isolation or illness is agreed, although the part of leave is issued later.

Kernel Legal, will continuously monitor the modifications and updates that may occur during these days, informing them about it. For any questions or queries do not hesitate to contact us.


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