New package of economic and social measures to tackle coronavirus – RDL 15/2020

1. Coverage of unemployment benefit to laid-off workers during the trial period of a new job

In order to further protect and cover people who do not have access to unemployment protection in the current context, coverage of the benefit is extended to workers whose contracts have been terminated during the trial period of a new job since 9 March or those who have voluntarily terminated it since 1 March because they have had a firm job offer that has fallen.

2. ERTEs due to force majeure

The regulation of ERTEs by force majeure is also amended to cover significant reductions in activity in those sectors considered essential, but which have been affected by mobility reduction measures and have des diminished their income.

3. Protection of discontinuous fixed workers

Greater protection is provided for workers who have a fixed-discontinuous contract so that they can join THEE or who can receive a benefit even if they have exhausted unemployment.

This is the case, for example, of many jobs associated with seasonal activities that begin at this time and work only a few months of the year. These workers will have a 90-day benefit regardless of wither they have consumed their unemployment or listed.

4. Telework extension and right to adapt the schedule and reduce the day

The preferential nature of remote work, as well as the right to adapt the schedule and reduction of the day, is extended by two months.

5. Self-employed workers: option for some Mutual Collaborator with Social Security

Self-employed workers had until June 2019 to make the option for some Mutual Collaborator with Social Security for the management of certain Social Security benefits. The Royal Decree Law approved by the Government allows those who are ready to make the application for cessation of activity, to opt at the same time for a mutual one. The process ensures that the new entity can recognize their right and facilitate their processing.

Likewise, they may also apply for the provision of temporary disability from that moment also in the Mutual for which they choose.

6. Reduction of contributions for certain agricultural workers

The reduction in contributions for certain agricultural workers during periods of inactivity in 2020 is approved or the procedure for deferring Social Security debt is simplified.

7. Labour Inspection

The periods of action of the Labour and Social Security Inspection are suspended, except in cases where the intervention of the body is necessary to ensure the protection of the general interest or because it is related to Covid-19.

The control and sanction mechanisms contained in Royal Decree-Law 9/2020 of 27 March are strengthened, with a specific sanction being established applicable to companies that file fraudulent applications for the obtaining of ERTE.

Corporate liability will in this case imply the return by the company of the benefits unduly received by its workers.

8. Cooperatives and labor societies

In an extraordinary way, the Compulsory Fund for education and promotion of cooperatives may devote, for a limited period, to any action that contributes to curbing or mitigating the effects of the health crisis arising from Covid-19. It will be possible to do so through own actions, donations to public or private entities or the provision of liquidity to the cooperative itself. The repayment of that fund is established within ten years.

Temporarily and extraordinarily, the requirements that allow public limited companies or limited liability companies to qualify as an employment company are flexible to avoid being deprived of this classification because of the consequences of the health crisis. In particular, the current mandatory period is extended by 36 months for one more year.

9. Pension fund rescue

In the area of citizen protection, the terms for the rescue of pension funds are laid down, defining, inter alia, the accreditation of the circumstances entitled to the availability of the plans, the period to which those circumstances are linked and the maximum amount available.

10. Notary tariffs are reduced

Notary tariffs for the novation of non-mortgage loans are reduced by 50%.

11. Avales Line: Moratorium on leases for vulnerable families by COVID-19

To implement the measures relating to the moratorium on leases for vulnerable families by COVID-19, the Avales Line approved in Royal Decree-Law 11/2020 is enabled to have an endowment of up to EUR 1.2 billion, to guarantee the loans granted by financial institutions.

12. Measures to Strengthen Business Financing

• A mechanism is established for renegotiation and deferment of the payment of rents from business premises to large holders or public companies. In the event that the owner is different from the previous ones, the use of the deposit as a payment mechanism is facilitated, and the latter must be replenished within one year.

• ICO’s Line of Guarantees is expanded to cover fixed income alternative market promissory notes, thus encouraging the maintenance of liquidity sources provided by capital markets. In addition, the capacity of the reciprocal guarantee companies of the autonomous communities is increased, through a strengthening of the reavales granted by the Spanish Refining Company, S.A. (CERSA) and guarantees that the line can be released until December 31, 2020.

• The Insurance Compensation Consortium is empowered to act as a reinsurerof credit insurance risks, strengthening the channeling of resources for commercial credit, ensuring continuity of economic transactions and providing security for business operations.

• On the other hand, the deferral of the quotas of loans granted by theIDAE is allowed under its subsidy or reimbursable aid programmes.

13. Tax measures

• Self-employed workers may calculate split payments of Personal Income Tax and to take into account the simplified value added tax regime with the method of direct estimation,which will allow, during the period affected by the alarm state, to adjust the payment to the actual income, rather than with the objective estimation method, which is usually used for its simplicity, without the need to give it up.

• In addition, a reduction in the split payment of IRPF and VAT is established, and the days on which there has been an alarm status can be discounted in each quarter. Companies will also be able to adapt on-account revenue settlements to the estimated revenue forecast by 2020

• It is established that the payment of tax debts should be made subject to obtaining the financing through the Avales Line.

• VAT on the supply of health supplies from domestic producers to public, non-profit and hospital entities is reduced to zero per cent, in line with the reduction of Tariffs by the European Union.

• VAT on books, magazines and electronic newspapers is also reduced to align it with that applicable to paper ones.

14. Other measures

• Financial support measures for Science and Technology Parks are approvedthrough the deferral and splitting of loan quotas to avoid their paralysis as a result of COVID-19.
• It is possible to extension of predoctoral contracts for investigative staff training in the field of investigation for the duration of the alarm state and its extensions arising from the health emergency caused by COVID-19, in addition, for justified reasons, contracts may be extended to an additional three months while the alarm declaration lasts.

• The barcelona Supercomputing Center Consortium-National Supercomputing Center-National Supercomputing Center is authorized to enable compliance with international commitments related to the EuroHPC project.

• Modification of the conditions of aid for public calls at the university level,to ensure continuity of projects or reduction of notary tariffs for the novation of non-mortgage loans. In this area, a moratorium is also established on the payment of fees from March to December 2020 of university loans that have been subscribed linked to the possession of a future income.

• To mitigate the economic impact of COVID-19 at the state port level, a number of exceptional and transitional measures are in place to respond to it. The measures respond to a possible reduction in the minimum activity committed to the enabling titles granted at the ports and will allow the Port Authorities to alter the minimum traffic established in those titles. In addition, reductions or exemptions are approved in various port fees, provided that the cessation or significant reduction of their activity is justified. These measures will save companies more than EUR 100 million.
• Also, in order to support sport in a context of paralysis of its activity and non-revenue generation by alarm state, a Foundation is created, which will be endowedwith funds from the sale of audiovisual rights to football, in order to help finance and provide stability to the federation sport, the Olympic and Paralympic sport in the anteroom of the Olympic Games. This Foundation will be attached to the General Administration of the State through the Higher Sports Council and will have the participation of the Royal Spanish Football Federation, the Professional Football League and representatives of the other Spanish sports federations, as well as official and unofficial competitions. This new Foundation will be the only one that will be able to assume the management and commercialization of the audiovisual rights of sports federations and competitions other than football, provided that they do not want to assume them for themselves.