New labor and social recovery measures

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On June 26, Royal Decree-Law 11/2022, dated June 25, was published in the BOE, adopting and extending certain measures to respond to the economic and social consequences of the war in Ukraine, to address situations of social and economic vulnerability, and for the economic and social recovery of the island of La Palma.

Said Royal Decree-Law, which came into force on June 27, seeks to respond to the extraordinary circumstances of recent times, and does so by implementing new measures, as well as by extending some others adopted previously through different regulatory instruments.

The aforementioned legal text incorporates a series of actions and measures of a labor and social nature, of which the following stand out:

  1. The prohibition to dismiss for objective causes based on the increase in energy costs, for companies benefiting from the direct aid provided for in Royal Decree-Law 6/2022, is extended. This prohibition is extended until December 31, 2022. Failure to comply with this measure will result in the return of the aid received in this area. Also, the prohibition of dismissal is reiterated, as long as the company is or has been in a situation of ERTE (partial or total) caused by the situation in Ukraine, benefiting from the public support.
  2. It establishes the extraordinary increase of the Minimum Living Income by 15%, from April to December 2022, both months included.
  3. Non-contributory pensions (retirement and disability) of the Social Security are increased by an extraordinary 15%, from July to December 2022, both months included.

In relation to the situation of the island of La Palma, the following measures are taken:

  1. The temporary employment regulation proceedings referred to in the fourth additional provision of the Royal Decree-Law 2/2022, of February 22, by which urgent measures are adopted for the protection of self-employed workers, for the transition towards structural mechanisms for the defence of employment, and for the economic and social recovery of the island of La Palma are extended until December 31, 2022.
  2. The benefits for cessation of activity of those self-employed workers who were receiving them as a direct consequence of the volcanic eruption registered in the area of Cumbre Vieja de La Palma for 6 months are extended until December 31st, 2022.
  3. The payment of Social Security contributions, which accrue in July and August for companies, and in July, August, and September for self-employed workers, may be deferred under the terms set forth in article 10 of Royal Decree-Law 20/2021.

Likewise, Royal Decree-Law 11/2022 provides for other types of collective measures aimed at alleviating the current economic situation and its impact on society. For example, it establishes the extraordinary possibility of suspending some eviction procedures, and it creates a direct line of aid of 200 €, in a single payment, in favour of individuals with a low level of income and assets. As requirements for this last measure, an income of less than 14,000 € per year in 2021 and a net worth of less than 43,196.40 € are established.