KEY MEASURES

 Measure

Content

Specialisations applicable to furlough schemes due to force majeure 

(Article 1)

A series of measures are established in relation to the ERTE due to force majeure regulated in article 22 of RDL 8/2020:

1.- Extension of the furlough due to force majeure scheme until 30th September 2020: the furlough due to force majeure scheme will be extended until 30th September 2020, provided that they have been requested prior to the effective date of RDL 24 /2020.

2.- Re-incorporation of affected persons: the companies and entities affected by a furlough due to force majeure must reincorporate the affected workers to the extent necessary for the development of their activity, giving priority to adjustments in terms of reduction of working hours.

3.- Waiver of the furlough due to force majeure scheme:

a.- Employment authority communication: in the cases of total waiver of the furlough due to force majeure scheme, the companies and entities must communicate the situation to the employment authority within 15 days from the effective date.

b.- State Employment Service communication ("SEPE"): however, the furlough due to force majeure scheme waiver and, if applicable, the suspension or regularization of the payment of the benefits which derive from its modification, will be carried out by the enterprises and entities, after communicating to SEPE the variations in the data contained in the initial collective application for access to unemployment protection.

In any case, when the easing of the restriction measures which affect the business activity allows the employees to return to their effective work, the companies must notify the SEPE of those variations which refer to the end of the application of the measure: (i) with respect to the whole of the staff; or (ii) with respect to a part of the affected persons, either in relation to the number of affected persons or to the percentage of their individual working day's activity.

4.- Prohibition of overtime, new hiring and outsourcing of activities: during the application of a furlough due to force majeure scheme, as a general rule, neither overtime nor new hiring - direct or indirect - and/or outsourcing of activities may be carried out.

Exceptionally, and after informing the legal representatives of the employees, new hiring and/or outsourcing may be carried out as long as the employees affected by the furlough schemes cannot carry out the contracted functions for objective and justified reasons (e.g. education and/or training). This measure is also applicable to furlough schemes for economic, technical, organizational and productive reasons ("ETOP") -see art. 2 RDL 24/2020 and following section-.

Failure to comply with this prohibition could lead to the imposition of sanctions by the Labor and Social Security Inspectorate.

Specialisations applicable to furlough schemes for economic, technical, organizational and productive reasons

(Article 2)

The application of the particularities foreseen in article 23 of RDL 8/2020 is foreseen with respect to the furlough schemes for economic, technical, organizational and productive reasons initiated after the entry into force of this RDL 24 /2020 and until September 30th 2020, with the following specialties:

a.- Furlough schemes for economic, technical, organizational and productive reasons during force majeure furlough schemes: the processing of a furlough scheme for economic, technical, organizational and productive reasons may be initiated while an furlough scheme due to force majeure is in force.

b.- Retroactive effects: when the furlough scheme for economic, technical, organizational and productive reasons is initiated after the termination of an furlough scheme due to force majeure, the date of effects of the furlough scheme will be retroactive to the date of termination of said scheme.

c.- Furlough schemes for economic, technical, organizational and productive reasons currently in force: the furlough schemes for economic, technical, organizational and productive reasons in force as of the the effective date of RDL 24 /2020 shall continue to be applicable as provided in the final communication and until the term referred to therein.

d.- Prohibition of overtime, new hiring and/or outsourcing of activities: the same regime as that foreseen for the furlough scheme due to force majeure - indicated in the previous section.

Exceptional measures for unemployment protection 

(Article 3)

Certain provisions are made for unemployment protection:

1.- In relation to the unemployment protection measures with respect to the furlough scheme due to force majeure and Furlough schemes for economic, technical, organizational and productive reasons provided for in paragraphs 1 to 5 of Article 25 of RDL 8/2020, their application is extended until 30th September 2020. The measures whose validity is extended until September 30th are, among others, the recognition of the right to the contributory unemployment benefit without the requirement of a minimum period of contributory occupation and, likewise, that the enjoyment of the benefit does not count for the purpose of consuming the maximum duration of entitlement.

These unemployment protection measures will be extended in the same terms to the furlough for force majeure scheme referred to in the First Additional Provision of RDL 24/2020.

2.- The unemployment benefit Management Entity of the will extend until 30th September 2020 the maximum duration of the rights recognized under the furlough scheme by force majeure and furlough schemes for economic, technical, organizational and productive reasons, whose starting date is prior to the entry into force of RDL 24/2020. The companies that renounce the  furlough scheme in a total way or declassification of workers, must communicate the benefits Management Entity such circumstances prior to their effectiveness.

3.- In those furlough schemes for economic, technical, organizational and productive reasons in which the date of the business decision is communicated to the Employment Authority after the effective date of RDL 24 /2020, the company must make the collective application for unemployment benefits on behalf of the workers within the 15-day period established in Article 268 of Royal Legislative Decree 8/2015, of October 30th, approving the revised text of the General Law on Social Security ("LGSS").

4.- In the event of total waiver of the furlough scheme or declassification of workers, the collective application for unemployment benefits on behalf of the workers must be communicated, upon expiration of the month, and through the application certifi@2, the information on the days worked in the previous calendar month, when (i) during a calendar month periods of activity and inactivity alternate; (ii) it is a case of reduction of the usual working day -in which case the days worked in reduction of working day, the hours worked shall be converted into equivalent full days of activity-; and (iii) it is a case of combination of days of inactivity and days of reduction of working day.

5.- The communication indicated in the previous section is understood without prejudice to the obligation of the company to communicate to the Management Entity, prior to its effectiveness, the cancellations and variations of the measures of suspension and reduction of the working day in the legally established terms - see article 1 of the RDL and the first section of this Update.

Extraordinary contribution measures linked to furlough schemes due to force majeure and economic, technical, organizational and production reasons 

(Article 4)

Certain measures are established with regard to social security contributions:

1.- The companies and entities that have furlough schemes due to force majeure and that partially restart their activity will be exonerated from the payment of the company contribution to Social Security, distinguishing between two cases:

(i).- For workers who return to work after July 1st 2020 and those who resume their services after the ERTE's resignation due to force majeure, and in relation to the periods and percentages of the working day from that moment, the exemption from the contribution accrued in July, August and September 2020 will vary according to the following parameters.

(ii).- With respect to workers who continue with their suspended employment relationships as of July 1st 2020, and in relation to the periods and percentages of the workday affected by the suspension, the exemption from the quotas accrued in July, August and September 2020 will be reached:

2.- The companies that had decided to carry out a furlough scheme due to force majeure and economic, technical, organizational and production reasons before the effective date of RDL 24/2020, as well as the companies that start a furlough scheme due to force majeure and economic, technical, organizational and production reasons after the termination of a furlough scheme due to force majeure, will find applicable in identical terms the exonerations foreseen for the furlough due to partial force majeure listed in point 1 (i).

3.- These exemptions from the contribution will be applied by the General Social Security Treasury ("TGSS") at the request of the company with the following requirements (i) prior communication of the workers and period of suspension or reduction of the working day; (ii) prior presentation of a responsible declaration, with respect to each Contribution Account Code ("CCC") and month of accrual.

In order for the exemption to be applicable, the necessary declarations must be filed before the calculation of the tax settlement is requested for the accrual period over which such declarations have effect. The express waiver to the furlough filed before the Employment Authority determines the termination of these exemptions from the date of effects of such waiver. Likewise, the companies must communicate the express waiver of the furlough to the General Social Security Treasury (TGSS).

4.- From a control perspective of the previous quota exemptions, it will be enough to verify that the State Employment Service or the Social Marine Institute effects the recognition of the corresponding unemployment benefit for the period in question.

However, in the case of workers who have not received unemployment benefits, it will be sufficient to verify that the worker is still in the same situation as the one referred to in the Second Additional Provision of RDL 24/2020.

5.- The above-mentioned exemptions to the contribution will have no effect on workers, and the period in which they are applied will be considered as effectively contributing for all purposes.

Limits related to dividend distribution and tax transparency 

(Article 5)

Certain specialisations are included in relation to tax transparency and dividend distribution:

1.- The companies that have their fiscal domicile in countries or territories qualified as tax havens will not be able to take advantage of the furlough scheme due to force majeure and temporary contract suspension or reduction of the working day due to economic, technical, organisational or production reasons.

2.- The commercial companies and legal entities that make use of the furlough scheme due to force majeure and temporary contract suspension or reduction of the working day due to economic, technical, organisational or production reasons that use the public resources destined to the same, will not be able to proceed to the distribution of dividends corresponding to the fiscal year in which the furlough scheme is applied, unless they previously pay the amount corresponding to the exoneration applied to the Social Security contributions.

The limitation on dividend distributions will not apply to those entities that, as of February 29th 2020, had fewer than 50 employees.

Safeguarding of employment 

(Article 6)

The employment commitment provided for in the Sixth Additional Provision of Royal Decree-Law 8/2020, of 17th March, on urgent extraordinary measures to deal with the economic and social impact of Covid-19, will be extended, under the terms provided for therein, to the companies and entities that implement a furlough scheme due to force majeure and temporary contract suspension or reduction of the working day due to economic, technical, organisational or production reasons.and benefit from the extraordinary measures in the field of contributions -contained in article 4 of this RDL 24 /2020, explained above-.

For the companies that benefit for the first time from the exceptional measures foreseen in terms of quotations from the entry into force of this RDL 24 /2020 and the term of employment commitment to which it refers will start to be calculated from the entry into force of this RDL 24 /2020.

Extension of complementary measures of RD 9/2020 

(Article 7)

The validity of the complementary measures contained in articles 2 - protection against unemployment - and 5 - interruption of the calculation of the maximum duration of temporary contracts - of Royal Decree Law 9/2020, of March 27th, which adopts complementary measures, in the employment field, to alleviate the effects derived from Covid-19, are extended until September 30th 2020.

1.- Employment protection: the causes of force majeure or temporary contract suspension or reduction of the working day due to economic, technical, organisational or production reasons caused exclusively by Covid-19 do not justify the termination of employment contracts or dismissal, and the internal flexibility measures of suspension of contracts/reduction of working hours should be used if necessary.

2.- Interruption of the calculation of the maximum duration of temporary contracts: in cases in which the files of suspension of contracts due to force majeure or economic, technical, organisational or production reasons causes derived from Covid-19 affect temporary contracts, including training, relief and interim contracts, the suspension of the contract will mean the interruption of the computation, both of the duration of these contracts, as well as of the reference periods, equivalent to the suspended period.

Support measures for self-employed workers 

(Title II: articles 8,9 y 10)

RDL 24/2020 dedicates its Title II to regulating a series of support measures for self-employed workers:

1.- Exemption from the contribution for self-employed workers who have received the supplemetary allowance benefit during the state of alert: As from July 1st 2020, workers included in the Special Social Security Regime for Self-Employed Workers ("RETA") or in the Special Social Security Regime for Sea Workers who were receiving on June 30th the special benefit of cessation of activity provided for in Article 17 of RDL 8/2020, will be entitled to the following exemptions from their social security contributions: (i) 100% in the month of July; (ii) 50% in the month of August; and (iii) 25% in the month of September.

Such exemption from contribution shall be incompatible with the receipt of the benefit for cessation of activity.

2.- Benefit for cessation of activity and self-employment: self-employed workers who have been receiving the extraordinary benefit for cessation of activity under Article 17 of RDL 8/2020 until June 30th may apply for the benefit for cessation of activity provided that certain requirements are met:

a.- those provided for in articles a), b), d) and e) of article 330.1 of the LGSS;

 b.- that a reduction in turnover during the third quarter of 2020 of at least 75% in relation to the same period in 2019 is accredited;

c.- not to have obtained during the third quarter of 2020 net yields of more than 5,817.75 euros;

d.- In addition, for self-employed workers who have one or more employees under their charge, compliance with all Employment and Social Security obligations must be accredited at the time of applying for the benefit.

This benefit may be received until 30th September 2020 at the latest.

The recognition of the allowance will be carried out by the collaborating mutual companies or the Social Marine Institute (Instituto Social de la Marina - ISM) on a provisional basis with effect from 1st July 2020 - if requested before 15th July - or with effect from the day following the request in another case, and must be regularized as from 31st January 2021 through verification of compliance with the requirements.

The self-employed worker, during the time he or she is receiving the benefit, must pay all the contributions into the General Social Security Treasury (TGSS), applying the current rates to the corresponding contribution base.

3.- Exceptional benefit for the cessation of activity for seasonal workers: an exceptional benefit is established for this group, which is defined as those self-employed workers: (i) whose only work during the last two years was carried out in the social security scheme as self-employed workers (RETA) or in the Special Regime for Sea Workers during the months of March to October; (ii) who have remained registered as self-employed workers for at least five months a year during that period. In addition, certain requirements are indicated for entitlement to the benefit.

The amount of the benefit will be equivalent to 70% of the minimum contribution base that corresponds to the activity carried out in the RETA or in the Special Social Security Regime for Sea Workers.

The extraordinary benefit for cessation of activity may begin to accrue with effect from June 1st 2020 and will have a maximum duration of 4 months, provided that the application is submitted within the first fifteen calendar days of July. During the period of receipt of the benefit, there will be no obligation to pay contributions, and the worker will remain registered with or assimilated to the corresponding Social Security system.

This benefit will be incompatible: (i) with employment; (ii) with any Social Security benefit that the beneficiary may have been receiving, unless it is compatible with the performance of the activity as a self-employed worker; (iii) with self-employment when the income received during the year 2020 exceeds 23,275 euros; and (iv) for self-employed workers included in the Special Scheme for Seafarers, with the receipt of aid for the paralysis of the fleet.

The managing bodies, in accordance with the application submitted and the documents, if any, provided, will issue a provisional decision, upholding or denying the right, and from January 31st 2021, all the provisional decisions adopted will be reviewed.

Temporary measures of transition and accompaniment in terms of contributions 

(First Additional Provision) 

It includes a set of transition and accompanying measures in terms of social security contributions:

1.- The companies and entities that are in a situation of total force majeure under the terms of RDL 18/2020 on June 30th 2020, with respect to the workers assigned to and registered with the Contribution Account Codes (CCCs) of the affected work centers will be exonerated from the payment of the business contribution provided for in General Social Security Law  (LGSS) article 273.2 and joint collection quotas, under the following conditions and percentages

2.- The companies and entities that as of July 1^st  2020 are prevented from carrying out their activity by the adoption of new restrictions or containment measures, prior authorization by a furlough scheme due to force majeure on the basis of Article 47.3 of Royal Legislative Decree 2/2015, of October 23rd which approves the revised text of the Workers' Statute Law ("ET"), may benefit from the following exemption percentages with respect to the workers assigned to and registered with the Contribution Account Codes (CCCs) of the work centers affected:

3.- The above-mentioned exemptions will be incompatible with the extraordinary contribution measures linked to the furlough scheme due to force majeure and economic, technical, organisational or production reasons.

4.- When the companies and entities referred to in the previous paragraphs restart their activity, the measures foreseen for cases of partial force majeure will be applicable to them from that moment until September 30th 2020.

Workers included in furlough schemes who are not beneficiaries of unemployment benefits 

(Second Additional Provision) 

The workers included in the furlough scheme due to force majeure and economic, technical, organisational or production reasons who (i) are not beneficiaries of unemployment benefits during the periods of suspension of contracts or reduction of working hours and (ii) for whom the company is not obliged to pay the employer's contribution provided for in General Social Security Law (LGSS) article 273.2, shall be considered in a situation of assimilation to the registration during said periods, for the purpose of considering them as effectively contributing - taking into consideration the average of the contribution bases of the six months prior to the commencement of said situations.

The contents of this provision shall only be applicable during the periods of application of the exemptions from the contribution provided for in Article 24 of RDL 8/2020, Article 4 of RDL 18/2020 and Article 4 of RDL 24 /2020.

Tripartite Employment Monitoring Commission 

(Third Additional Provision)

The Tripartite Labour Monitoring Commission - made up of persons designated by the Ministry of Labour and Social Economy, the Ministry of Inclusion, Social Security and Migration - CEOE, CEPYME, CCOO and UGT–.

From the effective date of this RDL 24 /2020, the main functions of this Commission will be (i) the assessment of the measures contained in this regulation and the evolution of economic activity and employment; and (ii) the analysis of possible future measures to protect employment and the economy.

Employment dialogue (Fourth Additional Provision)

Express commitment of the Ministry of Employment and Social Economy to discuss with the main trade unions and employers' associations the issues related to unemployment benefit recognised during the redundancy procedures for people with several part-time contracts and solutions to the consumption of benefits and subsidies.

Employment Pact (Fifth Additional Provision)

The employers' and trade unions' organisations make a commitment to the Spanish Government to incorporate measures aimed at creating jobs.

Written form of employment contracts

(Second Final Provision)

The second paragraph of Article 8 of the ET is amended to make it compulsory for written contracts of employment of (i) fishermen; (ii) workers employed to work remotely; and (iii) workers employed in Spain by Spanish companies abroad.

If the requirement for written form is not observed, the contract of employment shall be presumed to be concluded for an indefinite period of time and on a full-time basis, unless evidence to the contrary is adduced to show its temporary nature or the part-time nature of the services.

In the case of verbal contracts of employment with fishermen that were in force, they must be formalised in writing within one month of the effective date of this RDL 24/2020.