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Companies may fire after an ERTE even if they are not at risk of bankruptcy

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The government has relaxed the prohibition of dismissals after the Temporary Employment Regulation Files (ERTE) in the new agreement signed with unions and employers, as it appears from the final approved text, since companies may fire even if they are not at risk of bankruptcy.

In the sixth additional provision referring to the 'Safeguarding employment', it is reiterated that the extensions of the ERTEs will be subject "to company commitment to maintain employment for six months from the date of resumption of the activity, understanding as such the reincorporation to the effective work of people affected by the file, even when it is partial or only affects part of the workforce ".

However, a third clause is added stating that "this commitment to maintaining employment will be valued based on the specific characteristics of the different sectors and the applicable labor regulations, taking into account, in particular, the specificities of those companies that present a high variability or seasonality of employment ".

This clause complements a previous clause, which is maintained in the current text as a fourth clause, which states that "the commitment to maintain employment will not apply. in those companies where there is a risk of bankruptcy in the terms of article 5.2 of Law 22/2003, of July 9, Bankruptcy ".

In other words, in addition to companies on the brink of bankruptcy, those in some sectors may make layoffs with "high variability or seasonality of employment"such as those directly related to the seasonal tourism.

The government approved on Friday extend the ERTE until June 30 derived from the health crisis and the suspension of certain activities during the state of alarm. Specifically, the text contemplates extend until June 30 of this year ERTEs of force majeure derived from Covid-19, either by total force majeure (without restarting the activity) or partial (recovery of part of the activity).

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