What are ERE and ERTE in times of coronavirus

If your job is at risk and your company has conducted an ERE or ERTE, consider how these measures may affect you.

ERE and ERTE are two measures taken by companies that affect workers when the situation in their profession becomes critical. Due to the coronavirus health crisis, many companies have taken these measures because they cannot cope with the situationYes, there are differences between these two ways of doing things.

In addition, there are companies that did not want to take such strict measures and that is why they gave their employees the opportunity to go on vacation earlier, spending days during the period of imprisonment. Of course, this is only a short-term solution, but many companies, despite this step, have decided to implement stronger measures such as ERE or ERTE.

What is ERTE

This measure, known by its abbreviated form, actually refers to the Temporary Employment Regulation and is regulated by Article 57 of the Labor Law. It consists of suspending a contract or reducing working hours due to economic, technical, organizational or production reasons or arising as a result of force majeure.

Remote work is sometimes the best option in the event of a potential business interruption.Remote work is sometimes the best option in the event of a potential business interruption.

Of course, the reasons for introducing ERTE may be the same as those used implement ERE. The reduction in working hours will range from 10 to 70% of the working day, calculated on a daily, weekly, monthly or annual working day basis.

In this case, the company is not obliged to cancel the employee’s social security, and the cancellation occurs only if the employment relationship between the company and the employee resigns, that is, in the event of dismissal. And if working hours are reduced, there is no need to cancel it; the employee remains registered with social security.

If at the time of the decision to carry out this ERTE the person was on leave for health reasons, maternity or paternity, the measures taken by the company won’t affect you at the time it will The discharge due to illness or the period of sick leave ends due to the increase in the family.

Many industries have been hit hard by the coronavirus crisis.Many industries have been hit hard by the coronavirus crisis.

On the other hand, many companies have resorted to the option of forcing their employees to take leave during the state of emergency in order to avoid the application of ERTE to their employees. And some companies where remote work is not possible, An option has been proposed that aggravates the measures less.

What is ERE

Officially called Employment Regulation Recordis regulated by Article 51 of the Labor Law and is defined therein as collective dismissal, meaning the termination of an employment contract for economic, technical, organizational or production reasons.

This must occur within ninety days and should affect a total of 10 workers in companies with fewer than 100 employees, 10% of workers in companies with between 100 and 300 employees, 30 workers in companies with more than 300 employees or the general workforce. ERE may occur for economic reasons due to negative results or for technical, organizational or production reasons. On the other hand, the Labor Regulations provide for preliminary consultations between the company and employee unions on issues reduction in layoffs or try to avoid them.

Differences between ERE and ERTE

One of the first differences is that the ERE can be applied without taking into account the number of employees in the company or the number of people affected.

The most important point regarding ERE is that ERTE is only issued in temporary crisis situations and does not pay workers’ compensation. The decision can be challenged by the labor authority if there is no motivating reason for the legal situation of unemployment.

ERE and ERTE are only temporary measures.ERE and ERTE are only temporary measures.

When applying ERTE, unemployed people are entitled to receive their appropriate unemployment benefit for a specified period of time. Although it should be borne in mind that unemployment less salary, and that is why income will decrease. On the other hand, not all people receive the same amount from this benefit; this will depend on different circumstances.

Other less serious mechanisms

There are other legal methods that can be used on employees in sensitive circumstances to avoid an ERE or ERTE:

  • Use of irregular days.
  • Agreement of wills with an employee with broad powers.
  • Other flexibility measures, reduction of working hours with the possibility of reinstatement at a later time, unpaid leave, paid leave, holidays, etc.
  • Opportunity make significant changes individual work.

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