ERTE: Unemployment Benefits and Subsidies for Workers

IMPORTANT: This article analyzes the requirements and amounts of unemployment benefits and subsidies related to ERTE in accordance with the regulatory and administrative framework in effect at the time of its publication. Currently, any issue related to ERTE, contributory unemployment benefits, subsidies, contract suspensions, or reduced work hours must be reviewed on a case-by-case basis, using the most up-to-date information from the SEPE, and Article 47 of the Workers’ Statute, and Article 47-bis of the Workers’ Statute, Article 267 of the General Social Security Law and the regulations in force at the time of the proceedings.

This post provides, for informational and historical purposes, an overview of the eligibility requirements and benefit amounts for unemployment benefits and subsidies related to temporary layoff programs. Its content should be read in the context of the regulatory framework in effect at the time of publication and the amounts applicable during that period.

Workers affected by a Temporary Employment Regulation File, or more commonly known by its acronym ERTE, are entitled to their corresponding unemployment protection.

Eligibility Requirements for Receiving Benefits in the Event of Suspension of an Employment Contract Due to an ERTE

To access this benefit, the following requirements must be met:

1. Be officially unemployed.
2. Register as a job seeker and maintain that registration while receiving benefits. You must also comply with the activity requirement included in the application.
3. To be eligible for contributory unemployment benefits, you must have worked and made unemployment insurance contributions for at least 360 days within the six years prior to becoming legally unemployed, and you must not have used the contributions from that period to claim a previous benefit.
4. You may be eligible for unemployment benefits if you have made contributions for less than 360 days, provided that your income does not exceed 75% of the current minimum wage, excluding the proportional share of two special payments.
5. Not having reached the normal retirement age, unless their contract has been suspended or their daily work hours have been reduced.
6. Not engaging in self-employment or full-time employment with an employer, unless such activity is permitted under an employment promotion program.
7. Not receiving a Social Security pension is incompatible with working.

Of course, in the event of a suspension of the contract, such suspension must be agreed upon in the applicable procedure, be temporary, and be due to economic, technical, organizational, or production-related reasons, or force majeure.

In the event of a reduction in working hours, this must have temporarily decreased by between 10 and 70 percent, with an analogous reduction in salary, be agreed upon in the corresponding procedure, and be caused by economic, technical, organizational, or production reasons.

Amount of the benefit in the event of suspension of the employment contract due to an ERTE

Workers affected by a Temporary Layoff Program (ERTE) are entitled—as we have mentioned—to the corresponding unemployment benefits.

The daily amount of the contributory unemployment benefit depends on the contribution base, which is calculated based on the occupational contingencies for the last 180 days for which contributions were made.

The amount of unemployment benefits, in the event of a suspension of the employment contract, will be:

1. During the first 180 days, 70% of the taxable base.
2. From day 181 until the end of the benefit period, the applicable percentage is calculated based on the same regulatory basis, in accordance with the regulations in effect at any given time.

In any case, these benefits have minimum and maximum amounts set by the SEPE for 2020. Accordingly, affected workers should take the following amounts into account:

• No dependent children: a minimum of 501 euros and a maximum of 1,098 euros.
• One dependent child: a minimum of 671 euros and a maximum of 1,254 euros.
• Two or more dependent children: a minimum of 671 euros and a maximum of 1,411 euros.

Contributory Benefits and Unemployment Benefits in Cases of ERTE

Unemployment benefits in cases of ERTE may vary depending on the worker’s circumstances, their prior contributions, the reason for the ERTE, the type of suspension or reduction in working hours, and the regulations in effect at that specific time.

Contributory unemployment benefits are generally linked to the contributions accumulated by the worker. Unemployment benefits, on the other hand, may be provided in specific cases, typically subject to financial, family, or personal requirements.

Therefore, in the case of an ERTE, it is necessary to review not only the employer’s notice but also the individual circumstances of the affected person, the regulatory base, the percentage reduction in working hours, the suspension period, prior social security contributions, and the information submitted to the SEPE.

Contract Suspension and Reduction in Working Hours

An ERTE may involve the temporary suspension of an employment contract or a temporary reduction in working hours. In the first case, the employee ceases to provide services during the authorized or notified period. In the second case, the employee continues to work, but with fewer working hours and a proportional reduction in pay.

The type of arrangement applied has a direct impact on the benefit amount awarded. In cases of reduced working hours, unemployment benefits are calculated based on the portion of the workday not worked, whereas in cases of contractual suspension, benefits may cover the entire period of temporary inactivity.

The company must process the case in accordance with the applicable legal procedure, and the employee must verify that the information provided matches their actual situation, particularly with regard to working hours, salary, the regulatory base, the dates affected, and the reason for the case.

Review of Amounts and Current Regulations

The minimum and maximum amounts of unemployment benefits may change over time. Therefore, the amounts listed in this post should be considered a historical reference for the year 2020 and not as up-to-date information for subsequent cases.

Currently, any calculation regarding contributory benefits, subsidies, reduced working hours, or temporary layoffs must be verified against the most up-to-date information from the SEPE, Article 47 of the Workers’ Statute, Article 47 bis of the Workers’ Statute , and the applicable Social Security system.

If in doubt, it is advisable to review the decision or notice received, your employment history, pay stubs, the employer’s certificate, the approved benefit, and any administrative correspondence related to the case.

Experts in ERTE, unemployment benefits, and labor law

At IN DIEM Abogados, we provide legal advice to companies, employees, executives, and professionals on matters related to ERTE, unemployment benefits, subsidies, contract suspensions, reduced work hours, layoffs, and labor proceedings.

Our team handles cases that require a technical assessment of business decisions, employment documentation, reporting to the SEPE, workers’ rights, and current regulations. In these types of proceedings, legal advice allows us to anticipate risks, identify errors, and develop an appropriate legal strategy.

• Advice for workers affected by ERTE, reduced work hours, or contract suspension.
• Review of benefits and subsidies granted by the SEPE.
• Challenging Labor Measures and Representation Before Labor Courts.
• Advice to companies on temporary layoff procedures.
• Labor claims related to errors, non-payment, conflicts of interest, or the calculation of benefits.

If you need advice regarding an ERTE, unemployment benefits, a subsidy, or any other labor-related matter, please contact our team for an initial legal assessment.

In-person, online, and urgent service. 24-hour support.

IN DIEM Abogados provides in-person, online, and emergency legal assistance from its offices in Madrid, Seville, Málaga, Marbella, Estepona, Las Palmas de Gran Canaria, Almería, and Huelva, serving clients throughout Spain.

The firm has a multidisciplinary team composed of specialized attorneys and professionals with experience in the judicial, tax, commercial, technology, criminal, civil, administrative, and labor law fields, which allows us to approach each matter from a technical, strategic, and practical perspective.

In addition, IN DIEM Abogados offers urgent assistance when the nature of the matter requires an immediate response or a quick initial assessment of the case.

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You can find us in Seville, Madrid, Las Palmas de Gran Canaria, Málaga, Huelva, Punta Umbría, Tomares, Coria del Río, Dos Hermanas, Mairena del Alcor, Estepona, Marbella, and Mairena del Aljarafe. We look forward to serving you.

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