Collective Bargaining

The government has announced a support package worth some €15 billion to support businesses and individuals as the economy enters a downturn. The broad range of measures aim to assist people and businesses suffering from the financial downturn due to the coronavirus pandemic. As part of the package the notice period for temporary lay-offs will be shortened from fourteen to five days, saving firms salary costs as they cut back. Workers laid off can claim unemployment compensation, provided they are a member of an unemployment fund. The waiting period before people can claim unemployment benefits will be eliminated, and freelancers will be allowed to claim unemployment benefits without shutting down their businesses.

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The government will inject €10 billion to support the economy during the coronavirus outbreak. As well as an earlier package of measures worth €3.8 billion, the government will spend another €3 billion from its own budget and an equal amount from EU structural funds to support private companies hurt by the crisis.

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The European Commission adopted a Temporary Framework to enable Member States to use the full flexibility foreseen under state aid rules to support the economy in the context of the COVID-19 outbreak. The aim is to ensure that businesses have the liquidity to keep operating, or to put a temporary freeze on their activities, if need be, and that support for businesses in one Member State does not undermine the European single market.

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Following a trade union campaign, the cantonal authorities decided to stop work at construction sites in Geneva and Vaud. There will be exemptions on a case-by-case basis, but also fines if necessary. Workers will receive partial unemployment benefits.

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The European Court of Justice found that workers aren’t exempt from regulations on permanent employment contracts just because they have agreed to multiple temporary contracts.

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The government announced an emergency package of €2.3 billion. It includes two measures to help businesses that face financial difficulties due to the coronavirus outbreak: one is focused on supporting employment, the other on creating buffers for firms that may be unable to pay their loans. Companies can benefit from government support for 60% of the salaries paid to employees so far.

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The government announced a €9.2 billion package to support workers and provide liquidity for companies affected by the coronavirus outbreak. The package is worth 4.3% of GDP, and €5.2 billion is assigned to fiscal measures such as flexible payment schedules for tax payments and social contributions and a reduction of social security contributions.

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The government approved changes to the law concerning state support during the emergency situation and the quarantine period. During idle time caused by an emergency situation or quarantine, employees must be paid at least the minimum wage set by the government (€607 gross for full-time employees). If company activities are restricted, the state subsidises 90% of the employee’s wage (up to the minimum wage). If company activities are not restricted, the state subsidy is 60% of the employee’s wage.

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A rescue package worth €1.8 billion has been unveiled to mitigate the impact of COVID-19 on the economy. The package includes a payment to companies of €350 per employee on quarantine leave, an additional two months leave for a parent who has to stay at home to take care of the children as a result of school closures, and a benefit of one day’s wage per week per employee for a company registering 25% less sales. This amounts to around €147 per month per employee. A business that was asked to close as part of the COVID-19 measures will get two days of benefit per week per employee.

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The government announced a €200 billion package to help companies and protect workers and other vulnerable groups affected by the coronavirus crisis. The €200 billion come in addition to the €14 billion announced earlier and represent nearly 20% of Spain’s annual economic output. Workers will be entitled to unemployment benefits even if they have not paid enough in social security contributions. Those who become unemployed or lose their regular income will be able to postpone their monthly mortgage payments as well as their utility bills.

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