New labor measures following COVID-19

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From Vázquez and Manchón we have the firm commitment to inform rigorously about the latest measures on labor matters approved due to the COVID-19 crisis.

Measures established in labor matters

As established in the Royal Decree-Law 9/2020, of 27 March, Companies are prohibited from terminating the employment contract or dismissing employees based on force majeure or economic causes., techniques, organizational and production measures that cover the suspension of contracts and reduction of working hours related to COVID-19 included in the Royal Decree-Law. 8/2020, of 17 March.

Besides, in response to the Government's measure to further restrict the movement of people, paralyzing any activity not yet suspended due to the state of alarm (except the essential ones) until the 9 April included, the Royal Decree-law 10/2020, of 29 March, regulates a recoverable paid leave for employed workers, with the following features:

  • It is mandatory and its duration is established from the 30 from March to 9 April (both included).
  • Workers will retain the right to the remuneration that would have corresponded to them if they were providing service., including base salary and salary supplements.
  • The recovery of working hours may be effective from the day following the end of the state of alarm until the 31 December of 2020.
  • In case of force majeure and if necessary, A minimum number of essential staff may be established in order to maintain the activity..

According to Order SND/307/2020, of 30 March, the restriction of 2 weeks of confinement only applies to employed workers, Therefore, it will not be applied to self-employed workers who provide essential and necessary services for the correct development of essential activities. (For example, cleaning, maintenance, urgent breakdown repair and surveillance).

Besides, as approved in the Royal Decree-Law 11/2020, of 31 March, The following measures are established regarding the term of payments to Social Security by companies and self-employed workers:

  • On the one hand, A six-month moratorium is granted to those who request it and whose activity has not been suspended due to the state of alarm., no interest, payment of Social Security contributions.
  • On the other, may request the deferral of their debts with Social Security that expire between April and June 2020, as long as they do not have another postponement in force.

We will continue to inform you about new measures as they are announced to keep you up to date with any relevant event that affects the development of business and professional activity..