Your company may have had to take in a force majeure ERTEbecause of the economic consequences left by the coronavirus crisis.
As you know, during a Temporary Employment Regulation (ERTE) file you won’t have to pay the wages of the workers included in the ERTE,and they won’t have to do their job. But who pays for Workers’ Social Security if your company is hosting aRTE?
This is one of the main doubts that arises to entrepreneurs who opt for the ERTE way to alleviate the bad economic situation of their business, so in this post we want to try to solve it, taking into account the approval of extension of THEEs until 30 September.
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During the ERTE, obligations to Social Security remain
During the ERTE, the company’s employment relationship with workers remains, meaning that the company must continue to fulfil its obligations to Social Security as long as the ERTE is maintained,as established in Article 24.2 of Royal Decree 8/2020, this period will be included within the quote year.
It is true that companies hosting an ERTE can enjoy a number of exemptions,which can significantly free up the burden of workers’ social contributions. But the obligation to quote remains.
With the extension of THEES, the exemptions from social security fees change. Here’s everything you need to know.
Social Security Fee Waivers in Force MSDs
As confirmed by the TGSS, companies in ERTE will be eligible for the following exemptions in the payment of social security fees:
> Business exemptions in total ERTE
Companies with fewer than 50 workers will have a 100% exemption until June 30 in the payment of fees to Social Security, which means that until this date, they will not have to pay their workers’ fees.
instead in companies with more than 50 workers the exemption will be 75%. Here it should be made clear that the moment a single worker left the ERTE and rejoined the activity (even if it was in time reduction) it would become considered a partial ERTE, and therefore the conditions of exemption would change
As of June 30, the percentage of exemptions drops as follows:
For companies with fewer than 50 workers as of June 30:
- 70% exemption in July.
- 60% exemption in August.
- 35% exemption in September.
For companies with more than 50 workers:
- 50% exemption in July.
- 40% exemption in August.
- 25% exemption in September.
> Business exemptions in partial ERTE
The exemptions for companies in partial ERTE will depend on the volume of the workforce, the month and the measures applied to each employee:
- Exemptions for companies with fewer than 50workers : During the month of June the exemption will be 60% for the assets and 35% for suspensions.
- Exemptions for companies with more than 50 workers: Until June, they will have an exemption of 40% for assets and 25% for suspensions.
As of June 30, all total ERTE will become partial ERTE,and therefore the exemptions for all companies will be the same.
The extension of THEES shall be dealt with under the mandatory report of the Labour Inspection and after informing the legal representatives of the workers, as established in Article 47 of the Workers’ Statute.
In short, if your company has taken advantage of aRTE because of the coronavirus pandemic, you will need to continue to comply with social security contribution obligations, and keep in mind that they vary depending on the volume of employees, the month and the situation of each worker.
If you have any questions about it, you can contact our advisors so we can help you solve it.