Bill extends COVID furlough schemes and aid for self-employed

Automatic summary, not yet reviewed

1. The bill would extend furlough schemes (ERTE) linked to the pandemic until February 28, 2022, if the company applies between October 1 and 15, 2021 with the required documents. If not applied for on time, the scheme ends.
2. Companies with ERTE schemes due to activity limits would see their Social Security contribution exemptions reduced if they do not train their workers: 40% or 50% depending on size, versus 80% if they provide training. For schemes due to activity bans, the exemption is 100%.
3. Companies with extended ERTE schemes or activity limits would have to provide training to each affected worker between November 1, 2021 and February 28, 2022: 30 hours in companies with 10 to 49 workers and 40 hours in those with 50 or more. If they fail to do so, they could lose the exemption and face penalties.
4. Unemployment protections for people in ERTE schemes would be kept until February 28, 2022, with a benefit of 70% of the regulatory base, along with the rules on dividend distribution, tax transparency, employment guarantees and limits on overtime and outsourcing.
5. Self-employed workers receiving cessation-of-activity benefits as of September 30, 2021 would get contribution exemptions of 90% in October, 75% in November, 50% in December and 25% in January 2022, if they remain registered until January 31, 2022.
6. The bill keeps several benefits for the self-employed: an extraordinary one for those forced to close by a health order (70% of the minimum contribution base, five months maximum), another compatible with self-employment for those showing an income drop of more than 50% versus 2019, and one for seasonal self-employed workers.
7. Because of the volcanic eruption in La Palma, affected companies and self-employed workers could use measures similar to COVID ERTE schemes: contribution exemptions of up to 100% and cessation-of-activity benefits, plus a joint commission to coordinate the island's recovery.
8. The MECUIDA plan would be extended until February 28, 2022, along with unemployment aid for artists and performing arts professionals, and the minimum vital income would be amended to adjust the independence requirement for those under 30.

Who it affects

• Companies with COVID ERTE schemes, which must apply for the extension and, in some cases, train their workers.: They can keep Social Security contribution exemptions until February 28, 2022.
• Workers affected by ERTE schemes and people with discontinuous permanent contracts.: They keep unemployment protection and the period counts as contributing.
• Self-employed workers.: They can get contribution exemptions and several cessation-of-activity benefits if they meet income requirements.
• Companies and self-employed workers in La Palma affected by the volcanic eruption.: They can use contribution exemptions and extraordinary benefits.
• Artists and performing arts and public show professionals.: The duration of their unemployment benefits and subsidies is extended.

Words worth knowing

ERTE (expediente de regulación temporal de empleo)

A Spanish furlough scheme: a procedure by which a company temporarily suspends contracts or reduces working hours, usually for economic reasons or force majeure.

Exoneración o exención de cotización

Exemption from paying Social Security contributions, in whole or in part, for a period.

Cese de actividad

A situation in which a self-employed worker cannot work and may be entitled to a benefit similar to unemployment pay.

Base reguladora

The reference amount used to calculate how much a benefit pays.

Plan MECUIDA

A pandemic-era plan for work-life balance and support for families and children, set out in Real Decreto-ley 8/2020.

It summarizes the text as it was introduced. It is written by artificial intelligence and may contain mistakes: the official text is what counts. Read the official text · How we make summaries