Extension of Covid furlough schemes and aid for self-employed

Automatic summary, not yet reviewed

1. Furlough schemes (ERTE) based on force majeure that are in force when this law takes effect are automatically extended until January 31, 2021.
2. Companies whose activity is prevented or limited by new health restrictions can use a furlough scheme with exemptions from Social Security contributions. The exemption percentages depend on company size and month, and reach up to 100% of the employer contribution.
3. The special procedure for furlough schemes based on economic, technical, organizational or production reasons linked to Covid-19 is extended until January 31, 2021, and existing schemes can be extended if there is agreement during the consultation period.
4. Companies receiving contribution exemptions commit to keeping their workers for six months. Also, during the furlough scheme they cannot do overtime, outsource activities or hire, with justified exceptions.
5. Extraordinary unemployment protection measures for people affected by these furlough schemes remain in place until January 31, 2021, at 70% of the regulatory base. Extraordinary benefits are also created for discontinuous permanent workers and for workers in furlough schemes without unemployment benefits.
6. Self-employed workers forced to close their activity by an authority order are entitled to an extraordinary cessation-of-activity benefit, equal to 50% of the minimum contribution base. Self-employed workers whose income drops by at least half and who do not qualify for the ordinary benefit can also access it.
7. The special cessation-of-activity benefit for self-employed workers already receiving it is extended until January 31, 2021, and a new benefit is created for seasonal self-employed workers. To receive it, applicants must show a drop in revenue of at least 75% in the fourth quarter compared to 2019.
8. A new category of vulnerable consumer is created for the electricity social bonus, for households with members who are unemployed, in a furlough scheme or with reduced hours for care reasons, subject to income limits. This category lasts until June 30, 2021.

Who it affects

• Workers affected by a Covid-19 related furlough scheme: They keep their unemployment benefits and the protection measures are extended until January 31, 2021.
• Companies whose activity is prevented or limited by health restrictions: They can approve furlough schemes and get Social Security contribution exemptions, with a commitment to keep jobs.
• Self-employed workers: They can receive extraordinary cessation-of-activity benefits if they close their activity or lose significant income.
• Households with unemployed members or members in a furlough scheme: They can get the electricity social bonus as vulnerable consumers if their income is below the set thresholds.
• Tenants and vulnerable households: Eviction suspensions, rent moratoriums and extraordinary lease extensions are extended until January 31, 2021.

Words worth knowing

ERTE (expediente de regulación temporal de empleo)

A furlough scheme: an authorization that lets a company temporarily suspend contracts or reduce its workers' hours.

Fuerza mayor (force majeure)

A cause beyond the company's control, such as a health ban, that prevents it from operating.

Exoneración de cuotas

The company is freed from paying part or all of its Social Security contributions for affected workers.

Bono social

A discount on the electricity bill for consumers in financial difficulty.

Salario mínimo interprofesional

The minimum wage that can legally be paid for a full working day.

It summarizes the law as published in the BOE. It is written by artificial intelligence and may contain mistakes: the official text is what counts. Read the official text · How we make summaries