Covid-19 has caused the rise of labor lawyers, who have been overwhelmed by the amount of demand after the rise in Employment Regulation Files ...
Covid-19 has had serious social and economic consequences, especially in the workplace. This has produced the rise of labor lawyers , who have been overwhelmed by the amount of demand after the rise in Temporary Employment Regulation Files and the Employment Regulation File.
That is why uncertainty is perhaps the feeling that can be found the most among Spaniards. This is because since the 2008 crisis, the situation has not been so uphill. An economic decline from which many people were still in the process of recovering.
However, this new blow to the pocket has made access to work now more limited, due to sanitary restrictions.
Consequences of the pandemic on the labor market
The third wave of Covid-19 has arrived and after a difficult year for Spanish finances, both the Government and companies are looking for alternatives that avoid the total defeat of the economy. On the one hand, the Government has deployed subsidies to workers in ERTE and in total unemployment, while revenue collection has drifted.
On the other hand, companies and freelancers resort to debt or the definitive cessation of their activities, thereby increasing unemployment, as well as the demand for labor lawyers. That is why we update you on the different aspects of the crisis due to the pandemic:
1. Rise of labor lawyers
ERTE converted into ERE, unfair dismissal, reduction in working hours, redistribution of workers in different centers of the company, etc., are the most common complaints in labor law firms.
Areas such as the Costa del Sol or the Balearic Islands, where the labor market is overturned with tourism, have been seriously affected by this crisis. Dozens of labor law firms in Malaga and the Balearic Islands have been the most requested experts during the current Covid-19 crisis.
Among the consultations are workers in ERTE , unemployed, as well as those who want advice to benefit from bank loans or government subsidies.
2. Increase of workers in ERTE
The Records of Temporary Employment Regulation, ERTE , is the procedure that in exceptional situations allows the employer to modify the contracts of their workers, either to suspend or reduce their functions temporarily within the company.
As a result of the pandemic, the numbers of workers who have joined the ERTE are alarming, only in January 35,625 employees were unemployed .
As a result, the number of defaulters has risen because the people who are in ERTE and who have received the SEPE contributory pension, have done so without collecting taxes. However, these taxes must be paid when making the income statement. In this context, the application for personal loans with Asnef has increased to unprecedented figures.
3. Cut of personnel, ERE.
Contrary to the ERTE, the Employment Regulation File, ERE, implies the definitive termination of a labor contract. In this sense, 219 thousand people were unemployed and it is estimated that this situation will continue to increase.
An example of this is that Heineken recently announced the application of an ERE with which it seeks to reduce staff by 20% before the end of the first quarter of the year. The measure was taken after the fall in income by 11.3% and the subsequent recording of losses that translate into 204 million during 2020.
