Support measures for companies and individual entrepreneurs in Spain in connection with COVID 19
Many companies and individual entrepreneurs in Spain now do not know what to do: the situation is not typical.
For its part, the government weakly explains what exactly needs to be done, where to go for help, what consequences will be due to non-fulfillment of obligations. As a result, small business is faced with a situation where there is a lot of information, even an excess, and measures seem to be taken - but the mechanism of action of these measures is not clear.
In this situation, even lawyers, lawyers, hestors are silent - no one can say for sure what needs to be done, to whom and where to go for help. Fenix Today does not provide advice either - we can only cover information gathered from local official sources.
Temporary cancellation of payment obligations
Italy and France, for example, provide benefits and temporarily cancel the following regular commitments:
- Payment of rent
- Mortgage payment
- Payment of utility services
- Some taxes
As of early May 2020, entrepreneurs have no specific assistance measures
And it is believed that in Spain, measures similar to France and Italy are unlikely to be applicable, except for a moratorium on mortgage payments. Deferred payments for social security payments and taxes are discussed in local media. So far, the authorities have not promised to compensate for damage to business.
Nevertheless, Pedro Sánchez is allocating more than 18 billion euros for economic recovery and business compensation. Therefore, we talk about the options for behavior and the consequences of choosing such options. The options presented are related to the ERTE procedure.
Business rights during the COVID-19 coronavirus epidemic
The ERTE, or Temporary Employment Regulation Procedure, is a mechanism provided for in the Spanish Workers' Statute that allows businesses to temporarily suspend employment contracts or reduce working days when they face economic, technical, organizational, production or force majeure difficulties. The ERTE procedure can be applied due to “force majeure”, under which COVID-19 falls.
Individual entrepreneurs autonomo
Individual entrepreneurs autonomo in a pandemic in Spain can exercise their right and "freeze" business activities.
What do you need to do for this?
To do this, you must submit Form 036 and notify the suspension of activities to the TGSS - Spanish Social Security Service.
- The consequences of making such a decision
- You will stop paying social security quotas
- There may be problems with eligibility
- It is unclear how the issue with medical care will be resolved
Another controversial issue: termination of the "plan tariff" for start-up entrepreneurs. For those who pay taxes under this preferential scheme, it is not advisable to terminate their activities.
Given the imposition of a 3-month moratorium on social contributions by the Government of Spain, in connection with the pandemic, weigh such a decision. For most autónomo this solution will be disadvantageous, but in some cases it is justified.
Spanish company amid COVID 19 pandemic
The Spanish company may also suspend its activities. This is provided for by Spanish law. First, let's consider companies with forms of ownership:
- Sociedad Limitada Nueva Empresa
- Sociedad de Responsabilidad Limitada
- Limitada Unipersonal
If your company has one of the forms of ownership indicated above - the procedure for the suspension of activities is similar to the procedure for individual entrepreneurs autónomo.
- Likewise, for this you need to: submit Form 039 and notify the social service of the suspension.
- After the quarantine situation is resolved, your company can continue to work again.
The consequences of making such a decision:
- The administrator (director of the company) will not pay insurance premiums during the suspension of the company's activities
- Also, there will be no need to report quarterly to the inspection, including a zero declaration
A company with the form of ownership of Sociedad Limitada with employment contracts:
The company does not have the right to send an employee on vacation without his consent. In this case, the law Art-38.2 del Estatuto de los trabajadores applies.
Transfer to remote work must also be done with the consent of the employee
"The period or periods of its enjoyment will be fixed by common agreement between the employer and the worker, in accordance with the provisions of the collective agreements on annual vacation planning. In the event of a disagreement between the parties, the company will establish the corresponding date for the enjoyment and its decision will be irrevocable. The procedural will be summary and preferential".
The employer has the right:
- Reduce opening hours due to force majeure
- Terminate the contract on the basis of the same law Estatuto de los trabajadores Artículo 47: Suspensión del contrato o reducción de la jornada por causas económicas, tecnicas, organizativas o de producción o derivadas de fuerza mayor.
- At the same time, the company is obliged to continue to pay social security contributions for the employee.
- Eligible for collective dismissal under the Estatuto de los trabajadores Artículo 51. Despido colectivo. Real Decreto 1483/2012, de 29 de octubre, por el que se aprueba el Reglamento de losimientos de despido colectivo y de suspensión de contratos y reducción de jornada as amended in 2016).
If none of this is done, the company has closed the place of work (office, warehouse, garage, etc.), then the employee retains his salary. Do not forget that this article may be useful to your friends who live in Spain. Share our useful materials in groups and on social media pages.