Temporary suspension of employment contracts and reduction of working hours (ERTO)

Article 7. Object

the temporary period during which the
salaried person continues to join the company but is suspended or reduced to the effective development of his / her working day.

Article 9. Temporary scope of application

period from May 1, 2020 to the 180 calendar days after the day on which the Government declares, by decree, the end of the emergency situation of health caused by the pandemic of the SARS-CoV-2, with the limit temporary maximum of December 31, 2020.

Article 11. Beneficiary companies and requirements

Companies that meet the following requirements may be eligible for temporary suspension of employment contracts or reduction of working hours:

That they are legally established in the Principality of Andorra.

That they have suspended their activity, both by compulsory decree of the Government and voluntarily, or
They are subject to a regime of guard or permanence by decree of the Government, or
That they are or open and authorized to open by Government decree but:
• Show a decrease in their turnover equal to or greater than
50% (compared to the previous year or February 2020 if they were not constituted).
• Although they do not show a decrease in the aforementioned turnover, they justify that the reduction in turnover has been of an entity that can jeopardize the future viability of the company, provided that
the ministry responsible for labor approves it.

That they do not have debts with the Public Administration unless those debts are in the process of regularization.

Article 12. Modalities

Companies can process the application in the following ways:

a) The temporary suspension of employment contracts.

b) The education of the working day of the employees who is not more than 75% of that day.

c) The two previous proportional and / or cumulative forms, depending on the needs of the company and the employees.

Article 17. Benefit of salaried persons

In the scenario in which the temporary suspension of work contracts is applied, employees will receive the following benefits in the following terms:

  1. Interprofessional Minimum Wage (SMI) (1,083.33 euros)
    The amount equivalent to the minimum interprofessional salary (1,083,33 euros) for the ordinary legal day or for the proportional part is fully guaranteed
  2. Salary between the SMI and the average salary (1,083.33 euros to 2,129.44 euros)
    In case the fixed salary of the salaried person is located between the minimum interprofessional salary (1,083.33 euros) and the average salary ( 2,129.44 euros), the increase between the minimum wage and the fixed salary that the salaried person receives is reduced by the following percentages:

30%. Between 1,083.34 euros and 1,432.03 euros.

40%. Between 1,432.04 euros and 1,780.74 euros.

50%. Between 1,780.75 euros and 2,129.44 euros.

  1. Salary between the average and double salary (2,129.44 euros to 4,258.88 euros)
    In the case of the fixed salary of the salaried person, it is located between the average salary (2,129.44 euros) and twice the average salary (€ 4,258.88), the increase between the average and fixed wages that the employee receives is reduced by the following percentages:

70%. Between 2,129.45 euros and 2,839.25 euros.

80%. Between 2,839.26 euros and 3,549.07 euros.

91%. Between 3,549.08 euros and 4,258.88 euros.

  1. Salary more than twice the average salary (more than 4,258.88 euros)
    The benefit is not taken into account when calculating the benefit, that part of the salary received by the salaried person and exceeds twice the average salary (4,258.88 euros) ).

The payment of the employee’s benefit resulting from the sum and reductions established is borne by the company and the Government at the rate of 25 and 75%, respectively.

Article 18. Benefits of the people who carry out an activity on their own account
The people who carry out an activity on their own account that has been suspended, both compulsorily by a Government decree and voluntarily, or who is subject to a guard or permanency regime by decree of the Government, they have the right
to receive a monthly benefit of € 1,083.33, only as long as the obligatory suspension or the guard or permanence regime continues.

This benefit is calculated according to the corresponding contribution base in February 2020 near the Andorran Social Security Fund, provided that it is one of the contribution bases mentioned in the following table:

QUOTE – FEE – SOU BASE – PERFORMANCE
(gross euros)
50,0% – 234,24 € – 1,064,72 € – 1,083,33 €
62,5% – 292, € 80 – € 1,330.90 – € 1,083.33
75,0% – € 351,36 – € 1,597,08 – € 1,083.33
100,0% – € 468,48 – 2,129 , € 44 – € 1,083.33

IMPORTANT: Company directors cannot receive any benefits.

Lease measures

Article 36. Reduction of the rent of the business premises

Reduction of the rent of the premises for Business

Regulation applicable from April 1 to April 30 of this Law (Law 3/2020, 1st Omnibus Law)

In all leases for business premises, the current contract rent is reduced in the following rates, for the period from March 14, 2020 inclusive, and the day following on that the Government declare the end of the health emergency situation caused by SARS-CoV2:

A) 100% in the case of business premises corresponding to activities that have completely ceased their activity.

B) 80% in the case of the premises for business corresponding to activities subject to a guard or permanency regime in accordance with the applicable decree of the Government.

C) 50% in the case of business premises corresponding to activities that must remain open.

Regulation applicable from May 1, 2020

In all leases for business premises, the current contract rent is reduced by the following rates, by the Ministry of the Law, for the period from the date of entry into force of this Law and the day on which the obligatory suspension of the activity or the regime of guard or permanence mentioned below ceases to be valid:

A) 100% in the case of premises for business corresponding to activities suspended both by compulsory decree of the Government and voluntarily, and to activities subject to a regime of guard or permanence by decree of the Government.

B) 80% in the case of the premises for business corresponding to open activities and authorized to open by decree of the Government.

Progressive transitional regime applicable when the obligatory suspension of the activity or the guard and permanence regime ceases to be valid:

Activity regime – Reductions in business rental income, 1st month post, 2nd, 3rd, 4th.

Suspended obligatorily or voluntarily – 100% 1st – 50% 2nd – 25% 3rd – 0% 4th

Guard or permanence regime – 80% 1st – 40% 2nd – 0% 3rd – 0% 4th

Open – 50% 1st – 0% 2nd – 0% 3rd – 0% 4th

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