DANA: Labour measures for "DANA" damage approved - RDL 6/2024

The BOE of 6 November has published the Royal Decree Law 6/2024, which comes into force on 7 November 2024. This decree establishes several labour measures for the municipalities affected by the DANA, such as exemptions in Social Security contributions, deferrals and moratoriums in the payment of quotas, the suspension of collection procedures, or the exceptional consideration of temporary incapacity due to an accident at work for the purposes of the economic benefit of temporary incapacity.

As a result of the heavy rainfall and floods that occurred on 29 October 2024 due to a DANA that affected the Valencian Community, Castile-La Mancha, Andalusia, Catalonia and, to a lesser extent, the Balearic Islands and Aragon, a first package of fiscal measures is adopted, economic and social measures have been adopted to deal with the devastating effects that the DANA has had on the lives of thousands of people, in order to tackle and cover the various personal and material damages, and to mitigate the severe impacts that this natural catastrophe has had on the socio-economic sphere.

The most affected areas were, in the province of Valencia, the area of Utiel-Requena, l'Horta Sud, la Ribera Alta and Baja and the Comarca de los Serranos; in Albacete, the municipality of Letur; in Cuenca, the municipality of Mira; and in Andalusia, various points in the provinces of Malaga, Almeria, Granada, Seville, Huelva and Cadiz, as listed in the annex to the regulation.

With regard to Social Security, urgent measures are envisaged to provide liquidity to workers and entrepreneurs, offering the possibility of requesting exemptions from Social Security contributions in the event of ERTE; companies and the self-employed are also authorised to defer payment of their contributions, and the regulatory deadline for payment is extended; the deadlines for payment of contributions accrued before the natural disaster are also extended, as are the deadlines for requesting cancellations and variations. Another novelty is the improvement in pension benefits for different contingencies.

These measures are included in chapter IV of the regulation (articles 18 to 28), as well as the suspension and interruption of procedural deadlines in the social order (tenth additional provision).

Below is a summary of the main provisions of the law relating to labour and social security matters.

Exemptions from social security contributions (Article 18)

This measure allows companies located in affected municipalities that have had to take an ERTE due to the DANA to benefit from a 100% exemption from the company's Social Security contributions. This includes both contributions for common and professional contingencies and other concepts of joint collection, in the months of November 2024 to February 2025.

To access this benefit, companies must be located in the localities mentioned in the annex to the regulation, have a contribution account code, and have requested an ERTE on the basis of the Workers' Statute.

Deferral and moratorium on payment of quotas (Article 19)

This measure offers a deferral in the payment of social security contributions for companies (from October 2024 to January 2025) and for the self-employed (from November 2024 to February 2025). The interest rate applied is 0.5%, significantly lower than usual. Payments will be distributed in monthly instalments and the repayment period may not exceed 16 months in total.

Alternatively, the same beneficiaries are allowed to request a moratorium of up to one year on the payment of these instalments, without additional interest. This applies for the same dates as the deferral.

Companies or self-employed persons must choose between deferral or moratorium, as the two measures are not cumulative. In addition, the request for a moratorium cancels any request for an extension of the deadline regulated in article 20, which we see below.

Extension of the statutory deadline for payment of dues (Article 20)

This measure grants an additional month to pay the Social Security contributions and complementary settlements corresponding to companies in the months of October 2024 to January 2025, and to the self-employed in the months of November 2024 to February 2025. This adjustment also applies to self-employed workers in the Special Social Security Scheme for Sea Workers.

Suspension of recovery proceedings (Article 21)

A temporary suspension of the procedures for collecting social security contributions is established from 7 November 2024 to 28 February 2025.

Extension in the submission of pre-disaster settlements (Article 22)

Businesses in the affected localities will be able to submit and pay the September and October 2024 instalments in November 2024, without surcharges or interest.

Flexibility for withdrawals and variations of data in Social Security (Article 23)

The affected companies have a period of 30 calendar days to apply for sick leave due to the cessation of activity due to the DANA. They can also request changes resulting from suspensions or reductions in working hours due to ERTE until the last request for the calculation of the settlement of contributions.

Severance benefit for the self-employed (Article 24)

Los autónomos en las localidades afectadas podrán solicitar la prestación por cese de actividad sin necesidad de demostrar fuerza mayor, y el periodo de percepción no computará para el cálculo de los períodos máximos de percepción en el futuro.

Special treatment of temporary incapacity (Article 25)

Temporary incapacity (TI) processes resulting from the DANA will be treated as work-related accidents, which ensures better Social Security coverage. This includes both employees and self-employed workers who were registered at the time of the catastrophe.

Flexible Social Security processing (Article 26)

If the persons concerned are unable to present documents in order to receive benefits, they will be able to use responsible declarations. In addition, identity verification requirements are relaxed to avoid administrative hurdles.

Extraordinary increase in Minimum Living Income and non-contributory pensions (Article 28)

Beneficiaries of the Minimum Living Income (IMV) and non-contributory pensions in affected areas will receive an extraordinary 15% increase in their benefits from November 2024 to January 2025.

Suspension of procedural time limits in the social order (tenth additional provision)

The terms are suspended and the time limits provided for in the procedural laws for all jurisdictional orders, including the social court, are suspended and interrupted in the judicial bodies located in the province of Valencia from 30 October to 10 November 2024. The time limit may be extended by decision of the Council of Ministers, after consulting the General Council of the Judiciary, if the circumstances justifying the suspension continue to exist.

The interruption shall not apply to collective dispute proceedings and proceedings for the protection of fundamental rights and public freedoms regulated in Law 36/2011, of 10 October, regulating social jurisdiction.

However, the judges and courts may order the practice of any judicial actions that are necessary to avoid irreparable harm to the rights and legitimate interests of the parties to the proceedings.

SUMMARY:

Main labour measures RDL 6/2024