A flood of lawsuits and punishment of companies for ‘undue’ ERTE payments (Temporary employment regulation procedure) | El Economista

Today’s article in El Economista includes the statements made by Ignacio del Fraile and Carlos de la Torre, partners in the Labour and Employment department, at the Breakfast organised in the Madrid office to address the labour trends of 2023 and delve into issues such as the expected resolution of the European Committee of Social Rights of the Council of Europe (ECSR) on compensation for unfair dismissal or the Royal Decree-Law 1/2023 on urgent measures regarding incentives for employment contracts and improvement of the social protection of artists to review the claims procedures.

Carlos de la Torre, points out that “the general compensation of 33 days should be maintained and a “taxed” formula should be added for those with less compensation”. Ignacio del Fraile, for his part, stresses that “for now there are no claims specifically relating to the legal cost of dismissal, but this will undoubtedly change after the European ruling”.

On Royal Decree-Law 1/2023 on urgent measures, Carlos de la Torre, points out that “the change is not minor and will have consequences in “economic” terms for employers. In his opinion, the changes are justified by the way in which those ERTEs were processed, which were calculated on the basis of data provided by the companies and not by the workers, which means that the former are responsible for the errors.

Read the full story.