Aid for companies to keep jobs and protect the unemployed

Automatic summary, not yet reviewed

1. Companies that suspend contracts or reduce working hours through a redundancy procedure (expediente de regulación de empleo) will get a 50% rebate on their Social Security contributions for common contingencies, up to 240 days per worker. To get it, they must commit to keeping the jobs for at least one year afterward.
2. If a worker receives unemployment benefits during a suspension or reduced schedule and then their contract is terminated, the unemployment benefit is restored for the days used up, with a limit of 120 days (or 90 in some cases). The one-month waiting period for the unemployment subsidy is also removed in certain cases.
3. Companies that hire unemployed people on a permanent basis who receive benefits, subsidies or the Renta Activa de Inserción will get a 100% rebate on their Social Security contribution for common contingencies, for up to three years. They must keep the job for at least one year.
4. Part-time contracts are boosted: contracts with people who were working at another company with less than one third of a full-time schedule can qualify for rebates, and part-time rebates increase by adding 30 percentage points to the share proportional to the hours worked.
5. Employment of people with disabilities is reinforced: special employment centers will get 100% rebates on employer Social Security contributions, and job-retention subsidies will cover 75% of the minimum wage for a limited period.
6. Several changes are made to Social Security and employment policies: the special agreement in redundancy procedures is regulated, deadlines are extended for self-employed farm workers, contribution rules for street vendors are adjusted, and the plan of employment counselors may be extended.

Who it affects

• Companies with redundancy procedures (expedientes de regulación de empleo): They receive Social Security rebates if they keep the jobs.
• Workers affected by suspensions or collective dismissals: They can recover days of unemployment benefit and get the subsidy sooner.
• Unemployed people receiving benefits or subsidies: If hired permanently, the company gets a rebate, and they keep the right to what they had left to receive.
• Workers with disabilities and special employment centers: They get expanded rebates and subsidies to keep jobs.
• Self-employed people (farm workers and street vendors): Their Social Security coverage and contribution rules are adjusted.

Words worth knowing

Expediente de regulación de empleo (ERE)

A procedure by which a company, with administrative approval, suspends or terminates contracts or reduces working hours for economic, technical, organizational or production reasons.

Bonificación

A rebate or exemption on the contributions a company must pay to Social Security.

Contingencias comunes

The part of Social Security contributions that covers illness and retirement, as opposed to workplace accidents.

Subsidio por desempleo

A payment for unemployed people who do not qualify for the contributory benefit, usually because they have paid too few contributions.

Centro especial de empleo

A company whose workforce is mostly made up of workers with disabilities.

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