In Spanish legislation, the ERTE (Expediente de Regulación Temporal de Empleo), is a procedure by which a company in Spain can dismiss employees, suspend employment contracts, or temporarily reduce working hours when it is in financial difficulty and at risk of going out of business.
In Spain, ERTE is regulated by article 47 of the “Estatuto de los Trabajadores” (Worker’s Statue).
During the Coronavirus pandemic of 2020 and 2021, companies in Spain have been allowed to suspend the employment contracts of their employees on the understanding that they would not be dismissed within 6 months of their return to employment. During the first 180 days of prorogation, the employee is paid up to 70% of their base salary. From day 181, the employee is paid up to 50% of their base salary.