Regulatory Alerts2020-05-13
Royal Decree-Law 18/2020, of 12 May, on Social Measures in Defence of Employment
The Spanish Government issued Royal Decree-Law 18/2020 to extend and modify temporary employment regulation proceedings (ERTEs) and labour flexibility measures during the COVID-19 de-escalation phase until 30 June 2020. The decree mandates that companies transitioning from total to partial force majeure must prioritize working hour reductions over layoffs, retroactively apply suspension measures where applicable, and communicate all workforce adjustments to the labour authorities and the Public Employment Service. It also maintains extraordinary unemployment protection benefits, introduces graduated social security contribution exemptions based on activity recovery levels, and establishes a tripartite monitoring commission to oversee compliance and safeguard employment stability.