As the situation develops, our lawyers are working alongside clients and authorities to provide regular updates on the consequences of an ERTE.

At this moment, the virus continues to spread around the world and the circumstances are ever changing. In Spain, the measures implemented are influencing all areas that have to adapt to the new situation. We aim to assist you during these difficult times by providing the tools to minimize the negative consequences and risk to you.

What are your rights if your employer filed an ERTE?

Following the publication of the Decree-Law dated March 18, 2020, any employee affected by an ERTE will be entitled to apply for unemployment benefit.

Indeed, if under normal circumstances, the perception of the unemployment benefit is subject to prior contribution for at least 360 days, this condition has been lifted, ie, every employee will be entitled to apply for unemployment benefit regardless of the period effectively worked.

How is the unemployment benefit calculated ?

If your employer filed an ERTE, the unemployment benefit will be calculated from the Social Security contribution base of the last 180 days.

This information is contained in the pay slip issued by the employer on a monthly basis, in the box “Base de cotización Seguridad Social“.

ERTE Calculated the unemployment benefit
ERTE: Calculated the unemployment benefit

Once this base identified, employee will be entitled to receive 70 % of this amount for the following 180 days and then 50 % of this amount until the end of the ERTE.

 How long will I be entitled to receive this benefit?

You will be entitled to receive this benefit until the finalisation of the ERTE and your return at work. 

Will I pay Social Security Contributions and Tax Income?

Yes, you must keep contributing to Social Security throughout the period in which you receive unemployment benefit and paying income tax if applicable.

To find out exactly how much you will be entitled to, we invite you to use the calculator set up by the Social Security:

https://sede.sepe.gob.es/dgsimulador/introSimulador.do

If you are having doubts about your future or your company’s due to the recent Coronavirus outbreak, Lexidy can help you mitigate all your doubts with our solution oriented services: COVID-19 legal advise in Spain.

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