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Covid-19

Description and volume of the aid packages made available to employees, small businesses, large corporation

The Spanish Government has decided to grant an €200 billion aid package to fight the economy fallout of the coronavirus crisis. In general terms, the Spanish Government is trying to guarantee the liquidity for at-risk businesses as it is in the process of creating a line of public guarantees of €100 billion. Specifically, some of key measures available to the employees, small businesses and large corporations include:

Companies

Employees

  1. Flexibility of temporary layoff procedures (ERTEs) triggered by force majeure events and economic and organizational grounds.

 

  1. Exemption from social security contributions in the case of ERTEs due to force majeure; temporary postponement upon request of the payment of social security contributions

 

  1. Obligation of employers to maintain employment for a period of six months following the date of resumption of operations.

 

  1. As for taxes, unfortunately for the taxpayer, the publication of Royal Decree 465/2020, of 17 March has clarified the scope of the suspension of administrative proceedings excluding from its application the deadlines for filing tax returns.
  2. As for corporate issues, the three-month period for drawing up financial statements has been suspended and the time period for calling and holding the annual shareholders’ meeting has also been postponed.

 

  1. Moratorium on foreclosures of mortgages on primary residences for employees who lose their jobs as well for self-employed workers who sustain a dramatic income loss due to coronavirus crisis

 

  1. Flexibility to adjust business hours, timetables and teleworking.

 

  1. COVID19 to be treated as an occupational accident, which involves public benefits in favour the employee.

 

  1. Social benefits for workers from qualified areas and with temporary or periodical activity.

 

  1. Dismissal due to "force majeure" argued on the ground of the COVID19 will be considered “unfair dismissal”.