COVID-19

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Royal Decree-Law 25/2020 of 3 July on urgent measures to support economic recovery and employment

| COVID-19 | Employment Law and Social Security

The most relevant aspects of the measures implemented in employment matters are summarised below, although the regulation contains a whole range of measures of different nature:

 

EMPLOYMENT RELATED MAESURES

 

Measures

 

Content

Measures in relation to workers on seasonal contracts in the tourism sector

(4th A.P.)

The extension of rebates for seasonal workers in the tourism sector is established in the following terms:

1.- Scope: companies, excluding those in the public sector, engaged in: (i) activities within the tourism sector; and (ii) business and hotel activities linked to the tourism sector. The subsidy will be applicable throughout the national territory.

2.- Purpose: The above companies that (i) generate productive activity in the months of July, August, September and October 2020 and (ii) start or maintain signed up during those months the occupation of workers with fixed seasonal contracts, may apply a bonus in those months of 50% of the business quotas for common contingencies, as well as for the joint collection quotas (Unemployment, FOGASA, and Vocational Training) of those workers.

3.- Procedure: the contribution rebates will be applied by the Social Security General Treasury ("TGSS") at the request of the company (i) after communication of the identification of the workers and (ii) after presentation of a responsible declaration regarding their link to the tourism sector, for each contribution account code and month of accrual.

The declarations shall be presented through the RED System and before the calculation of the contribution settlement corresponding to the contribution accrual period on which they have effect is requested.

4.- Application by the TGSS and review by the Labour and Social Security Inspectorate: the quota rebates shall be applied by the TGSS in the corresponding quota settlements, without prejudice to their subsequent control and review by the ITSS.

5.- Compatibility system: these allowances will be compatible with the exemptions of Social Security business quotas, without the amount of the exemptions and the allowances exceeding 100% of the business quota that would have been paid.

 

RDL 25/2020 came into force the day after its publication in the Official State Gazette, that is, yesterday, 7th July 2020.

We hope the information is useful and of your interest. At Andersen we have created a multidisciplinary team to attend to all the questions that may arise on this aspect or in relation to the COVID-19.

The Royal Decree can be read by the following link or download the complete document here

For more information, you can contact:

Alfredo Aspra | Partner at Andersen

alfredo.aspra@es.Andersen.com

 

Pedro Alonso | Partner at Andersen

pedro.alonso@es.Andersen.com

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