Companies or, in another case, those legally responsible for a person who is working through a temporary regulation are those that present an ERE or employment regulation file. In this way, the working day will be reduced for any type of reason.

The reasons can be of an economic, producer, organizational, technical or even force majeure nature, as well as because the legal personality of the one who carried out the hiring of the worker in the employment regulation file no longer exists.

What is an employment regulation file or ERE?

An ERE is, according to its acronym, an employment regulation file. It proceeds to reduce the working day or to suspend the contract temporarily. Also, at times the practice has led to the dismissal of a large part of these temporary jobs.

This is the most serious measure that can be carried out in a temporary ERE and occurs due to the allegation of economic, organizational, technical or production justifications.

What Types of ERE Are There?

1 – ERE of extinction

It is the most serious that a contractor can proceed to in terms of the consequences that will arise in the face of workers. As it consists of a collective redundancy, these will be really serious.

An ERE of extinction means that the temporary ERE has definitively ended in terms of the regulation of its employment with the workers who have finally been affected.

2 – Suspension ERE

The employment regulation file is paralyzed only temporarily. This happens either to a large part of the workers of the workforce, or in its entirety. Thus, it does not suppose a definitive cessation as described in the previous point.

3 – ERE of reduction of working hours

The working hours of employees will be reduced in the working day of those specific workers who have been affected. However, it is not definitive, since this quality can be observed only in the file of regulation of employment by extinction. This is a temporary ERE.

Although in the last two cases described is where you can talk properly about the employment regulation file, in the first described (the extinction) is where it is possible to focus on an ERE. During the labor reform, the issue of the ERE of extinction has remained before the decision of the Courts.

The Courts are responsible for adjusting the workforce in case the challenge to it is inadmissible, having been previously rejected by workers who were affected or by their representatives, as well as by the labor authority itself.

What is the compensation for an ERE?

Workers who are affected shall be entitled to receive compensation for ERE. The employer, along with the workers or rather, their representatives, will have to negotiate the compensation.

Compensation shall never be less than 20 days for each annual period of time worked,in accordance with the wording of the law.

If the period in which work has been done is shorter, the proportion will be made from the prorations of each monthly payment worked.

It is sometimes in the interest of the employer to negotiate compensation higher than the minimum that the law has established in order to prevent the ERE from being taken to court by means of a social challenge.

The corresponding courts will consider the ERE from two different approaches, according to what the law has exposed or, as dismissal declared inadmissible or null in which case, the compensation for ERE will be effective depending on the case. However, it is normal to do it from 33 days to 45 per year worked.

If the company that has made an employment regulation fund cannot afford such compensation to the worker,it will usually be made by the Wage Guarantee Fund (FOGASA),as long as the amount to be paid does not exceed the double amount that corresponds to the minimum interprofessional wage.

Other corresponding rights with respect to compensation are to be included in some type of plan that carries out relocations to its employees. In addition, it should be noted that with respect to its quotation, this will be equal to what it used to have before the production of the fact.

Likewise, in the event that the worker obtains that the ERE does not proceed, the company will not be obliged to communicate to the person who is going to rejoin the date on which he is going to return to perform his work, since this is recorded in an official document.