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Benefits for temporary redundancies and self-employed workers extended until September 30

Employer organization, unions and Spanish government agree on measure to be approved on Friday

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25 June 2020 04:02 PM

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ACN | Madrid

Business community organization CEOE, unions, and the Spanish government have agreed to prolong temporary redundancy scheme (ERTO) benefits as well as those for self-employed workers until September 30.

CEOE, the last party to get behind the move, finally accepted the Spanish government's latest proposal on Thursday, while the measure itself will be approved in an extraordinary cabinet meeting on Friday.

The employers' organization issued a statement in which it claimed its governing bodies "unanimously supported" the proposal as it has "progressed significantly compared to the initial proposal." CEOE also stated that it would continue working towards finding ways to tackle the final quarter of 2020 in September, while social groups had hoped ERTO benefits would be extended to the end of the year. 

On May 12, the Spanish government had already agreed to extend these special conditions for those affected by coronavirus-related ERTOs until June 30 with the main trade unions and business associations.

Under temporary redundancy schemes, employers temporarily suspend their workers' contracts but they are still paid. The government covers 70% of their salary up to 1,100 euros (or up to 1,400 euros for people with children) for six months and then 50% after that period. While companies sometimes pay the rest, they are not obliged to do so.

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  • Spain's labor minister Yolanda Díaz, center, with trade union and employers' associations presidents (by Andrea Zamorano)

  • Spain's labor minister Yolanda Díaz, center, with trade union and employers' associations presidents (by Andrea Zamorano)

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