During the Alarm State, ERTE by force majeure has been the formula that more companies have taken to alleviate the serious economic consequences left by Covid-19,thus allowing them to temporarily suspend or reduce the working hours until they can return to normal.
Although it is a very beneficial solution, the reality is that for some companies ERTE is nota beneficial option to reduce costs, especially for larger ones, which forces them to look for alternatives to the ERTE that are more advantageous.
Many companies have realized that the ERTE will not solve theireconomic situation, even being able to take it until the end of 2020 or the first quarter of 2021. As long as the ERTE is maintained, the company must continue topay the social security fees of its workers, which is a significant economic outburr.
If you are in this situation, here are the different alternatives to ERTE that you can consider for your business.
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What alternatives to ERTE are available?
The reality is that the alternatives to THE ERTE available are nottoo many, and are usually unknown to entrepreneurs. In addition, the available alternatives require direct negotiation of the company with the workers,so it is not solely up to the company.
1. Redistribution of working hours
Those companies in which the Collective Implementation Convention provides for the figure of the irregular distribution of the day,could apply it in this situation, being an alternative to the ERTE very to take into account. Provided that they have not exceeded the deadline or the maximum amount set out in the Collective Agreement itself.
If this measure is in a position to be implemented, irregular redistribution of the day could be applied, so that during the months after the resumption of activity, reduced workers’ day to gradually expand until the end of the year.
To this end, it will be essential that the days could be compensated within 12 months of the redistribution of working hours.
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2. Substantial change in working conditions
The other alternative to THE ERTE would be the substantial modification of workers’ workingconditions, which is known as a Substantial Change File of working conditions.
Depending on the group or group of workers concerned, these Substantial Change Files of working conditions may be individual or collective.
Always after prior negotiation with workers or their representatives, this type of dossier would allow the conditions of work of employees tobe changed, such as carrying out a reduction in wages, provided that it is above the provisions of the Agreement or marked by the Interprofessional Minimum Wage. Otherwise the wage reduction could not be carried out.
In addition to being negotiated, this change in working conditions should be justified by ETOP reasons: economic, technical, organisational or productive.
A Substantial Change File of working conditions also allows the company to make a change in the distribution of working hours,provided that this modification does not go against the provisions of the Collective Agreement.
It is important to note that when negotiating a Substantial Change File of the Working Conditions, the conditions agreed by the Collective Agreement can never be exceeded. Otherwise we would be faced with an unapplied Convention, not a substantial change in working conditions.
You also can’t change the nature of contracts here either. That is, if a worker has an indefinite contract, it could not be changed to a temporary contract.
In short, if you have noticed that THEE is not beneficial to you, you have two other alternatives to the ERTE that may be more recommended: the redistribution of working hours or the substantial modification of working conditions.