Spain Extends Furlough Scheme Until February 28

The Spanish government has made the decision to extend the ERTE until February 28, 2022.

The Ministry for Labour, labour unions and representatives of employers reached an agreement to extend the furlough scheme that was put in place to help workers who have been affected by the Covid pandemic.

Due to end on September 30, the extension is a very welcome move that will help many that are still struggling, particularly those who work within the tourism and transportation industries, which have been hit particularly hard during the pandemic.

This is the sixth extension that has been granted since the first lockdown was imposed in Spain back in March 2020. At its peak last year 3.6 million people were on the furloughed list, today that figure stands at 270,000.

Alongside the extended furlough, the government also announced that “the focus now, is on training workers as they re-enter the workforce”.

This move means that the focus will now be on training as an essential step to help increase the skill set of workers, which will potentially improve their employability.

As of November 1, the new systems will be in place, with substantial exemptions in the Social Security contribution for companies that carry out training.

The training, however, must be carried out before June 30, 2022.

In a statement, the government said, “The ERTE will continue to have protection clauses such as, among others, the so-called zero counter, which is extended until December 31, 2022, or the employment maintenance clause. Also the limitations on subcontracting, the performance of overtime hours or the limits related to the distribution of dividends and access to these aids by companies domiciled in tax havens.”

Due to the eruption of the Cumbre Vieja volcano on the island of La Palma, many employers, employees and businesses are facing further difficulties and for this reason, a special ERTE regime has been put in place for the Canary Islands.

The Spanish government announced yesterday, September 27, that on the Canary Islands “Workers will have protection and companies will benefit from exemptions of up to 100 per cent of social contributions in the event of their activity being totally impeded and of up to 90 per cent in the case of activity limitation.”

Adding that “The ERTE will continue to have protection clauses such as, among others, the so-called zero counter, which is extended until December 31, 2022, or the employment maintenance clause. Also the limitations on subcontracting, the performance of overtime hours or the limits related to the distribution of dividends and access to these aids by companies domiciled in tax havens.”

Source

https://www.lamoncloa.gob.es/serviciosdeprensa/notasprensa/trabajo14/Paginas/2021/280921-diaz_escriva_6-prorroga_erte.aspx
https://www.reuters.com/article/health-coronavirus-spain-furlough/spain-extends-covid-19-furlough-scheme-to-feb-28-2022-idUSL1N2QU0CN
https://www.euroweeklynews.com/2021/09/28/erte-extended-until-february-next-year-special-erte-for-canary-islands/

Image Credit: La Moncloa