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Temporary lay-offs to keep jobs safe extended until June 30
12 May 2020 @ 12:50


TEMPORARY lay-offs during lockdown can remain in place until June 30, by which time the government expects normality to have returned to the business environment, confirms work minister Yolanda Díaz.

At first, companies were only allowed to lay staff off until they reopened – which is starting to happen in most of the country around now – and was causing widespread concern amongst traders who feared they would not be able to afford to pay salaries until they started making money again.

Although concessions have been made for business owners' rent or mortgage on their premises, taxes and Social Security payments, utility bills and other costs whilst they have not been able to trade, it will take time before they are completely back on track financially; especially as many are still limited to how many customers they can attend to on the premises, potentially cutting their takings.

Not prolonging the lay-off period beyond immediate reopening could put jobs in danger, but firms being allowed to keep staff temporarily off duty with no pay means employment is more likely to be kept safe.

Employees laid off can claim dole money instantly, even if they have not made sufficient contributions either throughout their working life or since they last needed to claim, and existing dole entitlement they have built up will not be affected or depleted by claiming as a result of the lockdown forcing businesses to close.

Once the legal lay-off period is over, on June 30, employees will all go back to work and their jobs must be kept safe for a minimum of six months from then.

The only exception to this is if their company is at risk of having to call in the receivers, the prelude to shutting down altogether, unless they make staff redundant.

Spanish laws covering job loss mean that a person who is sacked, rather than made redundant, has to receive the maximum pay-off, so under normal circumstances, 'finding a reason' to fire someone will not save a firm redundancy money.



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