The Government and social agents agree to extend the ERTE until February 28, 2022

The CEOE, which initially did not consider the agreement closed, voted in favor at a meeting of its Executive Committee held this Monday.

September 28 2021 (10:31 WEST)
Members of the Government of Spain meet with unions and social agents | Photo: Hosteltur.com
Members of the Government of Spain meet with unions and social agents | Photo: Hosteltur.com

The Government, the CCOO and UGT unions, and the business organizations CEOE and Cepyme have reached this Monday a preliminary agreement to extend the Temporary Employment Regulation Files (ERTE) until February 28, 2022, one month longer than initially planned, according to sources from social dialogue to Europa Press.

This preliminary agreement was announced around 8:00 p.m., although the CEOE did not consider it closed at that time because it was pending the celebration of its Executive Committee, convened for this same night, and closing an agreement with the Ministry of Inclusion to extend benefits for self-employed workers affected by the pandemic, which has also been achieved 'in extremis'.

Finally, the Executive Committee of the employers' association has given its approval to both the pre-agreement of the ERTE and the extension of benefits for self-employed workers, as confirmed by business sources to Europa Press. Both agreements are expected to be taken to the Council of Ministers tomorrow for approval.

The Government has highlighted in a statement that it is the sixth agreement reached with social agents on ERTE matters since the beginning of the pandemic.

Within the framework of the ERTE agreement, the Government and social agents have agreed to maintain the current conditions during the month of October, so that the current ERTE will be extended for one more month. From then on, from November 1, 2021 to February 28, 2022, a new scheme will come into effect in which the largest exemptions will be linked to companies providing training to workers whose employment is suspended.

Specifically, according to union sources, companies with more than ten workers will have an 80% exemption in their payments to Social Security if they provide training to workers in ERTE and 40% if they do not. For companies with up to ten employees, the exemption will be 80% if they provide training actions and 50% if they do not.

In the case of opting for training actions, companies will have to dedicate 30 hours of training if they have between 10 and 49 workers and 40 hours if they have larger workforces, according to UGT, which has indicated that training activities are linked to an increase in the credit used to finance the programmed training included in the law of the vocational training system for employment.

This credit is obtained from the contributions of companies and workers to Social Security with the aim of investing in the professional training of their employees.

The Government has specified that these training actions must be carried out before June 30, 2022.

During the month of October, companies that want to continue applying ERTE in subsequent months will have to submit a new ERTE application, which will be governed by the new scheme in force from November 1. If they do not receive a response from the labor authority within the established period, administrative silence will apply with a positive character.

 

Specific ERTE for the Canary Islands

The Government has also agreed with the social partners to launch specific ERTE for companies affected by the eruption of the Cumbre Vieja volcano on the island of La Palma and throughout the Canary Islands.

According to the agreement, workers will have protection and companies will benefit from exemptions of up to 100% of social security contributions in the case of totally impeded activity and up to 90% in the case of limitation of activity.

At the same time, the Government has agreed with the organizations of self-employed workers an extraordinary benefit of four months duration for the self-employed of La Palma affected by the eruption of the volcano.

 

Extension of the zero counter

Government and social agents have also agreed on improvements in the framework of labor rights of workers in ERTE, according to UGT and CCOO. Thus, the so-called 'zero counter' is extended until December 31, 2022, so that the time consumed of unemployment by the worker who is in ERTE since September 2020 will not be counted when a dismissal occurs for any reason after January 1, 2023.

It also establishes an extraordinary unemployment benefit for people with fixed-discontinuous contracts; the 'zero counter' is guaranteed for this group, which was not previously guaranteed, and the amount of the benefit to be received by workers in ERTE remains at 70% of the regulatory base for the entire duration of the extension.

Likewise, the conditions of access to the benefit are maintained, even if the required contribution period is not met, as well as the commitment to maintain employment; the prohibition of dismissal; the interruption of the calculation in temporary contracts; the prohibition of carrying out overtime; the impediment to make new hires in companies that are applying ERTE, and the impossibility of outsourcing activity while enjoying the benefits of ERTE.

The general secretary of CCOO, Unai Sordo, has expressed his satisfaction with this preliminary agreement that "maintains and improves the rights for workers." "We are satisfied to renew the tool, the lever that has served to ensure that jobs are not destroyed in Spain," he added.

The secretary of Trade Union Action of CCOO, Mari Cruz Vicente, commented that the union values "very positively the pre-agreement" reached this Monday and has thanked "the Government's effort to meet the demands" of the union.

"The result is an agreement that significantly improves the conditions of workers who are in ERTE (...). For CCOO, this agreement means that once again the social agents have demonstrated our effort and willingness to reach an agreement that protects employment and labor rights," he added.

 

Agreement to extend the benefit for self-employed workers

Also this Monday and almost at the last minute, the Ministry of Inclusion, Social Security and Migration has agreed to extend the benefits for self-employed workers affected by the crisis derived from Covid.

The agreement, according to the presidents of ATA and UPTA, Lorenzo Amor and Eduardo Abad, respectively, in their Twitter accounts, maintains the extraordinary cessation of activity benefit for self-employed workers until January 31, 2021.

In the case of the extraordinary benefit, a 75% drop in turnover will be required, comparing the last quarter of 2019 with the last quarter of 2021, and the income limit will be raised to 75% of the current minimum interprofessional wage.

Gradual exemptions are also maintained for those self-employed workers who had been enjoying some of the benefits until September, which will range from 90% in the first month to 25% in the fourth month, while the ordinary benefit remains as before.

From UPTA, Eduardo Abad, has expressed his satisfaction with the agreement, since "practically no self-employed worker who needs to remain attached to the system will be exempt from this aid". "We believe it is a very good agreement," he said.

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