ERTE due to Covid: the Supreme Court says that the period does not count to receive a new unemployment

In a decision that could affect thousands of workers, the Supreme Court has ruled that ERTE periods due to the Covid-19 crisis will not contribute to the accumulation of rights for future unemployment benefits. This decision, dated November 16, represents an important shift in the interpretation of special labor regulations related to Covid-19.

Covid regulations

The ruling clarifies that the special regulation of Covid-19 does not establish that the unemployment generated in these cases entails greater benefits than those provided for in the general regulations. The objective of the royal decree is to ensure that the exemption of company contributions in these periods does not harm the worker, but does not extend his rights beyond what is contemplated in the ordinary Social Security law.

What the Law says

According to the ruling, although there are exceptional situations where contributions without effective work can generate unemployment rights, these must be expressly contemplated in the law. In this case, the general Social Security legislation, which excludes this possibility, prevails.

Indicted by the failure

The Supreme Court’s decision indicates that, for the calculation of an unemployment benefit, contributions already used for the recognition of a previous right cannot be considered, nor those made by the managing entity or the company during the benefit period. The only exception mentioned refers to benefits for suspension from work due to gender violence.

The case of a hotel worker

The ruling responds to the case of a hotel employee affected by an ERTE during the pandemic. After being fired, she sued the SEPE for not agreeing with the days recognized for her unemployment benefits. The Supreme Court, confirming previous decisions of lower instances, determined that the 660 days recognized were correct, since periods under ERTE do not count for future benefits.

What is an ERTE and how does it affect the worker?

An ERTE (Temporary Employment Regulation File) is a labor measure that allows companies to suspend contracts or reduce temporary working hours in situations of force majeure or economic circumstances. It affects the labor and social security rights of employees during the application period.