An ERTE, the Spanish temporary employment adjustment procedure, allows certain temporary measures affecting employment contracts or working hours where a legal ground exists. It is not a general authorisation to reduce costs, nor can it be prepared solely on the basis of one month's fall in turnover. The first decision is to identify which ground exists and the procedure that applies to it.
The Spanish Workers' Statute distinguishes economic, technical, organisational or production grounds —known as ETOP— from temporary force majeure. Although both routes can affect business activity, their requirements and procedures are not interchangeable.
What distinguishes ETOP grounds from force majeure
ETOP grounds relate to the business's economic position or changes in its resources, organisation and demand. Their justification should be linked to the proposed measure: who is affected, for how long and why it is appropriate.
Force majeure requires an examination of the event that temporarily prevents or limits activity and the procedure for establishing it before the labour authority. Calling a commercial difficulty “extraordinary” is not enough to use this route.
| Issue | ETOP grounds | Temporary force majeure |
|---|---|---|
| Starting point | Evidenced economic position or business changes | An event that must fall within the statutory ground |
| Procedure | Includes consultation on the applicable terms | Follows a specific procedure before the labour authority |
| Preparation | Documentation of the ground and the measures | Evidence of the event and its temporary impact |
The documentation should explain the measure
The file should make it possible to understand how the problem leads to the proposed suspension or reduction. A set of accounts without explanation may not demonstrate why particular positions or working hours are affected.
Prepare a description of the activity, the developments relied on, the alternatives examined and the selection criteria. Also check who represents the workforce and what communications must be made. Do not assume that a small business has no information or participation obligations.
What should be clarified for the workforce
A clear communication should distinguish a proposal from a decision already made and explain its intended temporary scope. The business's obligations should also be distinguished from the conditions for accessing benefits, which must be checked for the people affected.
Subsequent changes require monitoring. If the ground disappears, worsens or affects other people, an extension should not be improvised on the basis of the initial file. It is advisable to review the legal basis and the necessary steps again.
Frequently asked questions
Do all ERTE procedures require the same consultation period?
No. The applicable procedure should be identified before preparing timetables. Applying the ETOP consultation arrangements generally to force majeure leads to procedural errors.
Can the measure be indefinite?
An ERTE addresses a temporary situation. If the problem is structural, the appropriate legal response should be examined, without using a temporary measure as an automatic substitute for other decisions.
Through our employment advice for businesses service, we review the documentation and options before starting the procedure. You can request an appointment to assess your situation. This is general information: it does not determine whether a particular ERTE is viable or guarantee benefits or social security contribution relief.
