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Update II COVID19

The Government announced the extension of another 15 days of quarantine.

This means that businesses won’t be allowed to open until at least the 14th of April, on the condition that this is not extended again.

Our office has already helped many of our clients who were forced to close businesses according to the Royal Decree, by submitting an ERTE (TEMPORARY EMPLOYMENT REGULATION).

This means that they won’t need to pay social security on their employees and that they will receive an unemployment benefit until the State Alarm is lifted.

Some other businesses and autonomos have decided to reduce the number of hours of their staff, in order to help their businesses keep going.

We are now helping autonomos and businesses without employees, to apply for an employment benefit and therefore a suspension of the autonomo payment.

  • This can be made straightaway for those businesses and autonomos who were forced to close their business, according to the article 10 of the Royal Decree 463/2020.
  • However, nothing can be done in this next month and we will need to wait till the 1st April which is the deadline we have been given to make these applications. This is because clients will need to have and prove they have seen their sales reduced by a minimum of 75% over the period of a month, compared to the average of the sales made over the last 6 months, in order to qualify.
  • All the applications must be submitted before the 14th of April.
  • While for some activities it is crystal clear those had to close down business, such as restaurants, bars, teaching academies, most of the shops and hair salons, there are some others that it is not so clear such as of retail business doing home delivery and internet sales. Consequently, is not so straightforward to apply for the benefit, such as happened to Burger King who were forced to close but cannot apply for an ERTE, as they still do home deliveries.
  • Those not clear, according to the Royal Decree, would have to wait until the 1st of April and even though you might not be trading or haave your business closed, you will need to prove your sales were reduced by more than 75%, compared to the average of the sales made over the last 6 months.
  • This unemployment benefit will be sorted out and paid out by your “Mutua”. They are the insurance companies that collaborate with the Spanish Social Security system, duly authorised by the Spanish Ministry of Employment and Social Security and registered with the Special Register operated by said Ministry. Their aim is to collaborate with the management of the Spanish Social Security system under its direction and auspices with members jointly assuming liability for the situations and with the scope established by the law.

In principle, we are expected to provide at least a financial report and the accounts for your business, to show how your business has decreased and income reduced. But we will need to wait for your “Mutua” to confirm what paperwork is required.

Important things you need to know about your autonomo payment:

  • We must also take this opportunity to stress the importance of continuing to pay your autonomo fee at this stage. Whilst we appreciate this will be incredibly difficult, it is paramount to ensuring you don´t lose your right to make a claim and receive the benefits retrospectively, of which you are entitled.
  • The Social Security will debit your bank account and take the autonomo payment from your bank account at the evening on the 30th of March. Please make sure you have enough funds to attend the payment.
  • The autonomo payment will be automatically refunded by the Social Security as soon as they recognise you are entitled to receive an unemployment benefit and any future payments will be suspended from then on.

Please contact us immediately if you are not working and need us to help you obtain an unemployment benefit. We will inform you accordingly with the steps you need to take, as well as of the costs for the process on the application, to your specific case.

For more information please feel free to contact Corral&Alcaraz.

At Corral&Alcaraz Law Firm we will be more than pleased to assist you.

CORRAL&ALCARAZ LAW FIRM

LAWYERS, BARRISTERS & ACCOUNTANTS

+34 968 078 754

info@corralalcaraz.com

Kimberley LinetteUpdate II COVID19

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