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Unemployment benefits during the Coronavirus crisis in Spain

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Posted and filed under Newsletters.

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.

20 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

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