Unemployment benefits during the Coronavirus crisis in Spain

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Emergency Economic Measures Introduced By Spanish Government.

19.3.2020

Clearly, Spain is currently in a very extreme financial situation. The climate is changing constantly but this is the most up to date information we have to hand. 

The Spanish government have said they will help people, including:-

Tax debts already in place will be able to be paid now in instalments with no added interests over six months.

People who receive heath care from their GP or the Spanish health system will get a “baja” as normal. Then payment of sick pay will be paid by the employer. Social security will in turn compensate the employer. This will be for 75% of the average salary of the worker.

Depending on the convenio that applies to the worker (type of work) some employers have to compensate the worker for the rest of the amount up to the usual salary. 

There may be a suspension of mortgage payments for affected workers, but that has not been shown how this will work yet.

– Ban on cutting off water, electricity or gas of vulnerable groups during the coronavirus crisis (we have not seen details on this yet)

Greater Protection Unemployment

There will be greater protection for unemployment. The Government will allow basically dole payments for people affected by the suspension of their unemployment due to the coronavirus crisis. (Please note this is being placed on temporary dismissal through the use of the ERTE, a temporary regulation. It is not a permanent dismissal). Even if , as we said above, when they had not yet generated the right to unemployment benefit.

Some companies that apply these ERTE special conditions to their workers are exempt from paying Social Security fees. You will need to speak to your asesor or laboral person regarding your own particular company and circumstances as to whether you can use ERTE.  

But it should be remembered this is a temporary measure, and obviously your staff are on temporary dismissal, so cannot be working for you from home. And when this is over, they have to be re-employed on the same terms.

How do Employees Claim Their Benefit in Spain due to Corona Virus?

Obviously there is an obligation to stay at home and the employment offices are closed. Since Monday, (March 16th 2020) the Public State Employment Service (SEPE) is closed to the public, so as with most things now it is not possible to go in person but the service is still available (with the offices closed).

Here is the link to the website https://sede.sepe.gob.es/portalSede/flows/inicio and here are telephone numbers http://www.sepe.es/HomeSepe/contacto/atencion-telefonica/tel-ciudadanos.html .

Spanish Solutions hope to offer a service, that for we can help people.We are working on the details so please let us know if we can help you.

In the case of ERTE, employers need to liaise with their laboral people/asesor in the first instance. They will need to be eligible depending on the situation of the company. There will then need to be a period of consultation with the staff about this matter, as we understand it. If there is a case of “force majeure” that can apply to the company, then the procedure in article 51.7 WS must be followed, which the asesor/labour office will deal with. Then the employer will not need to pay salary and the employee will be able to access unemployment benefits.

Please note if you are an employer to seek expert advice to help you in this difficult period. Do not feel that everyone is just dismissing their staff, this is not the case. This is not an opportunity to fire people without justification by blaming the crisis. Spanish Solutions are preparing for a number of unfair dismissal cases against employers- Please be careful.

What is Spain trying to achieve?

Spain wants people to continue to work where possible, at home, teleworking as much as possible, and those who work without contact with others (pool cleaners for example) may continue. This can only be used as an extreme emergency measure, and the staff will need to be reinstated by law, so goodwill and understanding is important. Be careful of following procedures properly, otherwise you may be liable to a dismissal claim. If you receive anything of this type (we hope not), please contact us for advice.

In terms of employees, again this is a temporary measure. You have not “lost” your job, only a temporary suspension. Spanish Solutions and others, will assist you all we can. If your employer has not done things properly using the ERTE proceeding then please contact us to explain the situation as soon as possible and we will advise on the employment issue

Regarding “Autonomo” or the Self-Employed in Spain, we will cover this in a further article.

Stay safe and good luck to all through these difficult times.

41 Comments

  • Julie Bartlett

    We are Leak Tech and we test swimming pools for leaks and do the repairs. We also attend to mains water leak detection and repair to houses. The police have said we can only attend to water leaks as they say this is essential but not do to swimming pools. However, I noted that you mentioned pool cleaners are okay to attend their work. Would you say that we come under the same catergory?

    • Nicola Ryan

      Good Morning Julie,

      Thank you for your enquiry.

      We understand your frustration, but we cannot challenge what the Police have told you, we are sorry.

      Kind regards
      Nicola

  • Laura Poppleton

    Hi. I worked a temporary retail contract from March to November last year and was due to do the same months and hours with same employer this year. I have also worked wkends for same employer through Jan and Feb this year but without any contract of employment. New contract was not signed for March start due to virus shut down so I am unsure which benefit I can apply for temporarily as Emplyer says they cannot put me on ERTE and I have no proof of work done and due start date. Any advice would be greatly appreciated.

    • Amanda Thomas

      Hi Laura, Thank you for your message. We will contact you by email on this. Kind Regards.

  • Christopher

    I have a tenant who is eligible for ERTE payments. Are these payments claimable on a month to month basis with the possibility of changing the payment amount each month, or are they payable in a 6-month fixed-rate block?
    Also, I can find no information regarding government help for me as a landlord if I agree to discount the tenant’s rental payments for the duration of the Covid-19 measures. As it stands, will I lose any money I discount?

    • Amanda Thomas

      Dear Christopher, I am afraid an asesor would need to advise regarding the ERTE payments but also you may find the answer to this question and also help regarding landlords and rental payments to you on the CAB Spain website and facebook. But, I can say you should not lose money if you agree to discount the rental payments during the State of Alarm as these should be made up later (a deferral not a discount). Kind regards

  • Lasbery

    Sir/Madam,
    I really need urgent help now. A quick response to this mail will save a sorry situation. My work is usually from April to October.
    When I closed work in 2019. I needed unemployment benefit/ help (Paro/ Ayuda), which I applied from INEM, but inem did not give me any money. I know I contributed to Social Security for at least 6 months last year 2019.
    I have barely nothing to eat now. I was really hopping that things will be fine when I start work this year 2020, but Corona virus came and my working place was closed till now. Now “Orange Espagne S.A.U (reference Jazztel)” phone = 923992182 wants to cut my internet line because I am owing them € 50 (fifty euro) Yes, I will surely pay them but I don’t have money now. I am not working right now because of this corona virus pandemic. There is no money in my account. (1) The government did not give me any money this time we are at home because of corona virus. (2) When I closed from work in October 2019 before the corona virus arrived, I applied for paro or ayuda from the INEM, but inem did not give me any money. I don’t even have money to eat now. The only way I communicate with people this time is through my Jazztel internet line. This is because we are all at home due to the corona virus. I do not know what to do now. When I saw this site online, I was so happy and exited because I strongly believe that something good will come out of it. Please I really need help. Counting on your cooperation. Thank you

    • Amanda Thomas

      Good morning, You need to make an appointment online with the SEPE office in case you can get any subsidy that the Government can give you. They are still working but by appointment, here is the ink Here is the link to the website https://sede.sepe.gob.es/portalSede/flows/inicio and here are telephone numbers http://www.sepe.es/HomeSepe/contacto/atencion-telefonica/tel-ciudadanos.html.

      Regarding the internet problem, you can inform the Company of your situation in writing asking them for time (so recorded) and made a complaint in case they cut off the Internet. I think the priority is to try to get some assistance but you can only do that through the unemployment office. Good luck

  • ravi bhatt

    good afternoon,
    i left for india in feb for vacation, before leaving my company did baja fr 2 months since i was going for vacation and during this period there was lock down, which i am unable to return to spain until lock down and because of baja , i am not even eligible for receiving ERTE, but i still have expenses to pay rent and other bills.. is there any other way to get some AID from Government?since i am stuck in India, I am help less

  • S

    Hi, I’m out of “ayuda de familiar” and don’t recieve nothing. I worked 20 years in Spain and missing some days to have the right to receive “paro” unemployment money. I can’t find anything in the net and the official phone numbers and offices are not working. I’m registered as unemployed, but… in this situation it’s unpossible to find answers or help or work. Somebody have the same experience? Please let me know how you get in contact to the “junta & sepe” to get answers/help.
    Thanks in advance.
    Kind regards

  • Dani233

    I have a ten­ant who is eli­gible for ERTE pay­ments. Are these pay­ments claim­able on a month to month basis with the pos­sib­il­ity of chan­ging the pay­ment amount each month, or are they pay­able in a 6-month fixed-rate block?Anular cita sae
    Also, I can find no in­form­a­tion re­gard­ing gov­ern­ment help for me as a land­lord if I agree to dis­count the ten­ant’s rental pay­ments for the dur­a­tion of the Covid-19 meas­ures. As it stands, will I lose any money I dis­count?

    • Amanda Thomas

      Good morning, you would need to ask your accountant or asesor about the payment of ERTE payments. However on the discounting of rent, it is only a moratorium, they need to make it up when they can. With kind regards

  • Natalia Żaboklicka

    Good afternoon, because of corona virus I’ve Lost my job for tui. I was supposed to work until the end of Summer for TUI company. I’ve Lost a job and I would like to apply for the unemployment

    • Amanda Thomas

      Dear Natalia,I am so sorry to hear this. You need to contact the unemployment office, here is the link for SEPE, good luck in finding something else too https://sede.sepe.gob.es/portalSede/flows/inicio Kind regards

  • Prad chand

    Hi
    I finished my paro during covid and I haven’t received any money and I could not find new job what should I do i where should I call
    Thanks

    • Amanda Thomas

      Good morning, you need to contact the SEPE office (unemployment office) for an appointment, Kind regards

  • Billie Campbell

    Hi,

    Please can you help? I have still to received any payment from my para yet.. other people in my company have been paid since end march amd I still have not received anything. My paper work wasn’t put through properly until the 9th of June and the lawyer from the company said it was being processed. I thought would get something on the 10th of this month but still nothing. Do you know why I still have not received any payments?

    Thanks
    Billie

    • Amanda Thomas

      Hi Billie, I am so sorry. What a difficult situation. You need to contact SEPE, but could be a bit difficult because of all the phone calls they are having. If the Company filed the paper work the 9th of June it could be normal not to have any response yet. I would ask the asesor/lawyer of the company, Good luck, kind regards

  • Wayne Gardner

    I applied for unemployment benefit, twice by mistake, so have two different reference numbers. Will that cause a problem.? If so how do I delete one of them?

    • Amanda Thomas

      Dear Wayne, Sorry you need to check with a laboral office as we do not deal with this, or contact SEPE directly. Kind regards

  • Colette

    Hi I was placed on ERTE on the 14th March this year and this week I had my contract terminated but was told It would be Seamless and I would go straight onto Paro is this true? I really do not know what I must do now.

    • Amanda Thomas

      Dear Colette, This is more for a laboral office but no you need to arrange an appointment for unemployment benefit with your local SEPE office. You should ask your company where you should go and for the paperwork you need to take. With kind regards

  • Gemma Baxter

    My company has not completed dates correctly for my ERTE and I have not had anything since July. The company are not helping me to try and resolve this and are saying it’s our payroll providers error and it’s being investigated. I’m now owed 6000. What would you advise I do as SEPE say it’s the payroll providers error but I cannot speak to them as my company deals directly with them and is gate keeping. In dont know what to do to get my money owed to me.

    • Amanda Thomas

      Dear Gemma, I am sorry but we need more information to advise. First of all, where the company is located. Then we need to know if you are still on ERTE or back to work. Please can you email us with the information. Kind regards Amanda

  • Lillian

    I have been receiving ERTE this year, but did not receive my ERTE this month (December) my employer said that I have to sort this out with SEPE but I cannot get an appointment and do not know what to do,

    • Jane

      Hi Lillian

      I am sorry we can’t be of further help but only your employer, their accountant or the SEPE office can answer your question.

      Kind Regards

      Jane

  • BEENA

    GOOD EVENING, I JUST NEED ADVICE PLEASE HELP.. I COMPLETED MY 3 YEARS IN SPAIN AND APPLIED FOR ARRAIGO SOCIAL WITH PRE CONTRACT WHICH WAS APPROVED AND AFTER THAT WITH CONTRACT I HAVE ALSO APPLIED FOR RESIDENCIA WITH WORK WHICH WAS ALSO FAVOURABLE BUT NOW MY EMPLOYER IS NOT READY TO PAY MY TAXES AND I AM READY TO PAU HIM MY TAX AMOUNT, BUT HE IS TAKING ADVANTAGE OF ASKING ME TO PAY HIM 10,000€ AND I CANT AFFORD TO PAY THIS AMOUNT TO HIM.. HE SAID HE WILL NOT DO MY ALTA UNLESS I DONT PAY HIM.. BEFORING APPLYING HE DID NOT TOLD ME ALL THIS THINGS. NOW I AM BADLY STUCK..I HAVE NO OTHER OPTION FROM WHERE I CAN GET HELP?

    • Nicola Ryan

      Afternoon Beena,

      Thank you for your enquiry.

      We would recommend visiting a Fiscal Advisor or Assessor in your area and discuss this matter further, to confirm if what your employer is requesting is correct. We would strongly recommend not paying anything unless you have correct advice. If you find that the request for the 10.000€ is incorrect we would strongly recommend you denounce your employer to the Police. We hope this helps.

      Kind regards
      Nicola

  • Sheryl

    Hi. I was autónomo for nearly three years. I had to close my business end of June 2020 due to the virus. I have had absolutely no income since then and have been living off savings and my family. I am a single mum with 2 children at school and claim nothing. Am I entitled to claim something? If so how do I claim?

    • Nicola Ryan

      Good Morning Sheryl,

      Thank you for your enquiry, we are sorry to hear of your situation.

      It would be best to visit your local Social Security office and ask if you are able to apply for “Ayudas”, as you were autonomo, but we are unsure if you will be accepted as your company was closed last year. If you do not get Ayudas, the Social Security will be able to confirm what you would be eligible for. The Social Services will also be based at your local town hall, we would recommend contacting them as well to see if they can assist you in any way.

      We hope you get this sorted.
      Kind regards
      Nicola

  • Stephanie Carleton

    Hi I have been on ERTE since March last year 2020 then returned in July to November 2020 par time I was out back on ERTE in December 2020 then made redundant on the 3rd March 2021 due to the pandemic, I was working in Real estate since July 2018 in Spain.
    I also worked in Mallorca from 2006 to 2012
    I have applied for Paro etc I’m just trying to find out what I would receive and for how long.? Also what happens if I can’t find a job would the Paro cease ? Am I entitled to Any benefits towards my rent ? I also live with my partner made redundant from the same company we have no dependants
    Please help

    • Nicola Ryan

      Afternoon Stephanie,

      Thank you for your enquiry.

      You need to visit/contact your local Social Security office to confirm what benefits you would be eligible for. We hope this helps.

      Kind regards
      Nicola

  • Michelle

    I receive ertre,and I receive money for my son as a dependent,if he starts work on contract,will they automatically know and stop the money I get for him,or do we need to contact them.

    • Nicola Ryan

      Good Morning Michelle,

      Thank you for your enquiry.

      If your son, starts work, we would recommend contacting SEPE and advising them of this. We hope this helps.

      Kind regards
      Nicola

    • Amanda Thomas

      Dear Michelle, I am sorry this is a question for your accountant or an asesoría. Kind regards

  • June

    Hello, some advice would be greatly appreciated on whether I should take my issue any further or whether I would be wasting my time, my Spanish is not great and I struggle to deal with the paperwork.
    I have worked for the same company on a 10-month contract for three years. In March 2020, the company put me on ERTE. This was all dealt with by the company’s lawyers with my boss acting as a go between, sending forms to be signed, etc.
    My ERTE payments continued through the months of July and August which was when I would normally be given a suspension of contract and would apply for PARO. This didn’t happen and my boss did not contact me at all until the end of August asking me to return in September. I also recieved an ERTE payment in September, which I kept hold of because I knew they would ask for it back.
    I’ve now been asked to return €3000, which I definitely don’t have, to repay the ERTE payments from July to August.
    I feel that this overpayment of ERTE in July and August isn’t my fault as I signed paperwork allowing they company’s lawyers to deal with the situation on my behalf, having no real clue of the law or what was going on. I was not advised at any point to cancel the ERTE payments or given any indication or paperwork to sign onto the PARO.
    I have €1000, that I’d kept hold of, to return but having to repay all of it will put me and my family into severe financial hardship.
    Is there any recourse available to me against my company or their lawyers??
    Thank you in advance for any advice.

    • Amanda Thomas

      Dear June, If you are in this area near Orihuela Costa, please can you send me all the paperwork for us to study by email. If you are further away you need to refer to a local lawyer to the company. With kind regards Amanda

  • Mark

    Hi, last week I received a letter from social security regard ERTE and that I have to repay back €6,000, at the time I currently left my job but was still bring paid but for me this is going to be impossible to pay back and I thought they would automatically stop paying me when I left my job.

    • Nicola Ryan

      Morning Mark,

      You need to contact Social Security to arrange a payment plan to pay this back. If not, interest will continue to accrue until it is paid. It will also become an embargo. If you have a dispute with the amount, you would need to provide evidence of this. We would not recommend that you ignore it as it will only get worse. We hope this helps.

      Nicola

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