Those who want to know what is an ERTE need to be clear that its acronym refers to Expediente de Regulación de Empleo Temporal. This is a measure that the company takes to deal with an extraordinary situation, such as a temporary crisis, and which is The difference with the other file, the ERE.
Knowing what an ERTE is means knowing that it is a procedure that applies to the entire workforce or an entire area of the company and triggers the suspension of employment contracts on a temporary basis.. It can also lead to a reduction in working hours.
At present, the crisis in demand arising from the state of alarm that has been declared in response to the coronavirus is evident. This may cause a situation that companies consider as “force majeure” and force them to take these measures.
If they take the decision, knowing what an ERTE is, and resort to this solution, they will have to apply to the Labour Authority.. It must be accompanied by a report documenting the linkage of the loss of activity as a result of the situation in the country.
It is necessary that the management informs the workforce of its intention to declare an ERTE, providing the workers' representatives with a copy of the report that has been submitted to the Labour Authority.
The first distinction has to do with seasonality. While the ERE is a definitive solution, a full stop, the seasonality marks what an ERTE is. In the former, the terminations define the outcome of the relationship between workers and company, while in the latter, characterise a one-off situation that is expected to return to normal sooner or later.
Whereas in the case of the ERE the employees can claim compensation, The ERTE does not give rise to this.
The ERTE affects the company, which is forced to take a decision for reasons beyond its control, and the workers, who, from one day to the next, find themselves without a job. In the case of the staff, it is important to know their rights, part of knowing what an ERTE is, which include:
The employer who needs to resort to ERTE as a solution you will have benefits in relation to the payment of social security contributions. If you have less than 50 employees, you will be exempt from paying contributions, while if you have more than 50 employees, you will be obliged to pay 25% of the contributions.
