New social agreement in Defense of Employment

ERTEs due to COVID-19 and the economic benefit for cessation of activity for the self-employed are extended.

The BOE publishes Royal Decree-Law 20/2021 of January 26, on the reinforcement and consolidation of social measures in defense of employment.

The most relevant aspects have to do with:

  • The extension of all ERTEs based on causes related to COVID-19 until May 31, 2021 and the simplification of their procedures.
  • The commitment to maintain employment, so that the companies that take advantage of the aid must keep their staff for a new period of 6 months.
  • Mechanisms for the protection of workers and their rights.
  • Maintaining the limits of:
    • dividend distribution and tax transparency,
    • limits to the performance of overtime and outsourcing of the activity,
    • the prohibition of dismissal and,
    • the interruption of temporary contracts.
  • The economic benefit for cessation of activity for the self-employed.
  • The extension of the Mecuida Plan.

👉 Consultation in the private area of ​​partners (COVID-19 Measures), the detailed summary of the most important aspects to take into account in the Royal Decree.