As a worker, knowing the difference between ERE and ERTE is important, especially because these two figures, although they may use almost the same letters, are very different from each other.
However, not all workers know one hundred percent what an ERE or ERTE entails. So, how about we explain it to you so you understand? Go for it.
What is an ERE
An ERE is actually a Record of employment regulation. It is contemplated in the Article 51 the Workers' Statute That says so:
"1. For the purposes of the provisions of this law, collective dismissal will be understood as the termination of employment contracts based on economic, technical, organizational or production causes when, within a period of ninety days, the termination affects at least:
a) Ten workers, in companies that employ less than one hundred workers.
b) Ten percent of the number of workers in the company in those that employ between one hundred and three hundred workers.
c) Thirty workers in companies that employ more than three hundred workers.
It is understood that economic causes occur when the company's results reveal a negative economic situation, in cases such as the existence of current or forecast losses, or the persistent decrease in its level of ordinary income or sales. In any case, it will be understood that the decrease is persistent if for three consecutive quarters the level of ordinary income or sales of each quarter is lower than that registered in the same quarter of the previous year.
It is understood that technical causes occur when changes occur, among others, in the field of production means or instruments; organizational causes when changes occur, among others, in the scope of the personnel's work systems and methods or in the way of organizing production and productive causes when changes occur, among others, in the demand for the products or services that the company intends to place on the market.
The termination of employment contracts that affect the entire company's workforce will also be understood as a collective dismissal, provided that the number of affected workers is greater than five, when it occurs as a consequence of the total cessation of their activity. business founded on the same causes previously indicated.
To calculate the number of terminations of contracts referred to in the first paragraph of this section, any others produced in the reference period at the initiative of the employer due to other reasons not inherent to the person of the worker other than of those provided for in article 49.1.c), provided that their number is at least five.
When in successive periods of ninety days and in order to avoid the provisions contained in this article, the company carries out terminations of contracts under the provisions of article 52.c) in a number lower than the indicated thresholds, and without If new causes arise that justify such action, said new terminations will be considered carried out in fraud of law, and will be declared null and void.
The article is much longer, but so you can understand it better:
- The ERE It's a complete dismissal.. That is, the job is lost because the employment relationship that was being carried out before is extinguished.
- It is mainly applied when the company is going to cease operations. But there are exceptions. And it can occur in other cases, such as a decrease in the number of workers.
- Workers in ERE, as long as they have the right, yes They can receive unemployment benefits.
What rights do workers have?
In the case of an ERE, workers, despite having to see their job destroyed, do have some rights. On the one hand, they can agree on a severance payment that is greater than legal. That is, if right now the severance payment is 20 days per year worked, you can agree with the company that it be 30, 40, 50 or 21. This only occurs when the company is really only going to fire a part of the staff, because if it is a layoff, it is normal that they will not be able to cope with this.
Another right that one has is that of challenge the dismissal. If at any time the worker considers that it is not legal, or that they may have another hidden motive, they can report the situation. That does not mean that he cannot collect unemployment if he is entitled to it.
Finally, there is one more right for workers, as long as the ERE affects more than fifty workers. Then, The company has the obligation to establish an external relocation plan.
What is an ERTE
An ERTE is a Temporary employment file. It is contemplated in the article 47 of the ET That says so:
"1. The company may temporarily reduce the working hours of workers or temporarily suspend employment contracts, for temporary economic, technical, organizational or production reasons, in accordance with the provisions of this article and the procedure determined by regulation. .
2. For the purposes of the provisions of this article, it is understood that economic causes occur when the results of the company reveal a negative economic situation, in cases such as the existence of current or anticipated losses, or the persistent decrease in its level. of ordinary income or sales. In any case, it will be understood that the decrease is persistent if for two consecutive quarters the level of ordinary income or sales of each quarter is lower than that registered in the same quarter of the previous year.
It is understood that technical causes occur when changes occur, among others, in the field of production means or instruments; organizational causes when changes occur, among others, in the field of personnel work systems and methods or in the way production is organized; and productive causes when changes occur, among others, in the demand for the products or services that the company intends to place on the market.
As with article 51 of the ET, in this case article 47 is also longer and it talks about the procedure to follow. But, to make everything clear to you:
- An ERTE In reality it is not a dismissal, but a pause in the employment relationship. This may affect all workers or only some. During that time, since the worker is not working, he does not get paid.
- The company is still active. It does not close, but it does avoid expenses that, at that time, it cannot pay due to the situation. Now, it is not something definitive, hence it maintains the workers but without having to pay them (and without having that work done for them).
- The ERTE does not have a maximum duration. In reality, as long as the company continues to be in that situation, the ERTE can be maintained, although many workers in that situation decide to look for something else.
Workers' rights in ERTE
Like workers in ERE, those in ERTE also have a series of rights.
One of the first is receive unemployment protection. If the person has worked more than 360 days in the 6 months prior to the ERTE, he or she has the right to this protection.
Another important right is the collection of salary. We have told you before that it does not charge, and in reality it is not like that. While the ERTE is active, and for the first 180 days, it will charge 70% of the regulatory base. From 181 onwards, I would charge 60%.
Furthermore, while the ERTE is maintained, The worker can work for another company. The only thing you have to do is notify the SEPE if you are collecting unemployment benefits (as long as that job is not temporary).
Of course, keep in mind that, Even if you are in ERTE, they can fire you or not renew your contract.
Difference between ERE and ERTE
Now that we have conceptualized the two terms, the difference between ERE and ERTE is much clearer. Actually, There is not only one, but several of them. We summarize them here.
- An ERE represents a termination of the employment relationship. The ERTE is just a suspension.
- An ERE gives you the right to receive severance pay. In the ERTE no.
- An ERE gives you the right to collect unemployment if it corresponds to you. In the ERTE it would not be like that.
- The ERE, unless a limit is reached, is exempt from paying personal income tax. But in the case of the ERTE this is not the case.
Has the difference between ERE and ERTE become clear to you?