What is an ERTE: how it affects the business and the workforce

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.

What is an ERTE?

Knowing what an ERTE is means understanding that it's a procedure applied to the entire workforce or an entire section of the company, and it triggers the temporary suspension of employment contracts.. It can also lead to a reduction in working hours.

Currently, the crisis in demand, which has arisen as a consequence of the state of alarm declared in response to coronavirus, is evident. This may be the cause of a situation that companies consider to be “force majeure” and compels them to take these measures.

If they make the decision, knowing what an ERTE is, and resort to this solution, they will have to submit an application to the Labour Authority.. She must be accompanied by a report documenting the link between the loss of activity and the country's current situation.

It is essential that business managers inform the workforce of their intention to declare a temporary redundancy scheme (ERTE), providing the employee representatives with a copy of the report submitted to the Labour Authority.

Un ERTE (Expediente de Regulación Temporal de Empleo) es una medida que afecta temporalmente a las condiciones laborales de los trabajadores, como la suspensión de contratos o la reducción de jornada. Un ERE (Expediente de Regulación de Empleo) es una medida más definitiva, que implica el despido de trabajadores.

The first distinction relates to seasonality. While a redundancy scheme (ERE) is a definitive solution, a full stop; temporary measures mark what an ERTE is. In the former, terminations define the outcome of the relationship between workers and the company, whereas, in the latter, characterise a specific situation that is expected to return to normal sooner rather than later.

Whereas In the case of the ERE, employees can claim compensation., The ERTE does not give rise to this.

How does an ERTE affect a company and its workers?

The ERTE (Temporary Employment Regulation File) affects the company, which is forced to make a decision for reasons beyond its control, and the workers, who, from one day to the next, find themselves without work. In the case of the workforce, it is important to know their rights, part of knowing what an ERTE is, which include:

Being able to get your job back when the exceptional situation that has led to this decision by the company ends.
Claiming unemployment benefit, even those who do not meet the minimum contribution period of 180 days; and with the guarantee of not using unemployment benefits (“it will be put counter to zero”when this exceptional crisis is over.
No need to do any paperwork to claim the benefit, the company and SEPE are responsible for this.

The employer who needs to resort to ERTE As a solution, you will have benefits regarding social security payments. If your workforce is less than 50 employees, you will be exempt from paying contributions, whereas if it is larger, you will be obliged to pay 25% of the contributions.