The Government modifies the ERTE regulation: cyclical workers will require training

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The Government has introduced a ‘adjustment’ in the regulation of the temporary employment regulation instrument (ERTE), which entered into force together with the labor reforms within the framework of the royal decree on measures to promote employment approved yesterday by the Council of Ministers and published in the Official Gazette Official State Gazette (BOE) on Wednesday.

The change in question, which will enter into force this Thursday, affects the so-called cyclic RED, which can be requested by companies when there is a general macroeconomic situation that advises the adoption of additional stabilization instruments. Thus, for the purpose of avoid immediate layoffs due to economic shockthe cyclical RED allows companies to suspend part of their workers for a maximum period of 1 year.

The labor reform established a series of contribution benefits for companies that, instead of laying off workers, took advantage of the cyclical RED, but the current wording does not link the enjoyment of these exemptions to the obligation to offer training to workers who are suspendedas is the case with ERTEs for economic, technical, organizational and production reasons (ETOP) and the sectoral RED mechanism.

ERTE will only be authorized if training is offered in exchange

Thus, the decree on incentives for hiring published in the BOE modifies the current wording of the rule so that companies that are authorized to carry out an ERTE in its cyclical modality can only benefit from the exemptions provided for in the law in the case of that they develop training actions for affected workers.

The Government ensures in the norm that this “adjustment” is made to guarantee “the necessary legal certainty and internal coherence”, as well as its “consistency” in relation to the provisions of the ERTE. “It is an adjustment that ensures the coverage of the demands committed in the Recovery, Transformation and Resilience Plan in its component 23″, it states in the explanatory statement of the incentives decree.

The exemptions that companies authorized to carry out a cyclical RED can benefit from are 60% during the first four months30% in the following four months and only 20% in the last four months.

The reason for the creation of the RED

The ERTE in its cyclical and sectoral modalities were created in the labor reform due to the experience lived in the pandemic. Its activation requires authorization from the Council of Ministers. Currently there is only one ERTE of these modalities activated, the sectoral NETWORK of travel agencies.

The sectoral ERTEs provide exemptions of 40% of Social Security contributions, conditional on training. In fact, companies that want to adhere to this modality are obliged to submit a worker requalification planwhich includes the mandatory performance of training activities to enable relocation to another position within the same company or others.

The Sectoral ERTEs have a maximum duration of one year, with the possibility of two extensions of six months each. At the close of last year there were 20,574 workers in ERTE, of which 18,237 were in an ERTE-ETOP; 1,416 in an ERTE due to force majeure, and 921 in the travel agency sector ERTE.

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