In the Law RDL 9/2020 of March 27th, all layoffs of staff for any reason related to coronavirus are banned; economical, technical, organisational or production related reasons in connection with Covid-19 crisis.
The law essentially gives a permit to every employee until April 12th. During this time they will continue receiving their salary, paid by the company as always. The hours of missing production need to be worked later on, doing overtime or taken from holidays, before the end of the year.
This option, welcomed by unions, is not very popular among business associations.
Carlos Piñero, lawyer in the Autonomo Workers Association (ATA) has commented on the ways, according to his view, an business owner can confront this situation.
- Employers with funds can continue and pay their workers during these days of compulsory off-work time.
- Ask for a credit to pay the compulsory salary of their employees.
- Request an ERTE ( temporary layoff ) with the conditions stipulated by the law.
Here there are two cases this boils down to:
- temporary layoff without paying social security but with the obligation to re-admit the employee right after the end of the State of Alert and keep him or her for 6 months.
- temporary layoff during a reasonable time chosen by the company but paying the social security for its workers during that time.
Read: ERTE. How does it work?
- Dismiss the employee for subjected reasons. This should be the very last resource and, in order to discourage it, the law increases the redundancy costs of dismissal by stipulating that dismissing due to coronavirus crisis is not an aceptable reason.