Aids from the CAM to maintain employment in front of the Covid-19 crisis are approved. Specifically, an item of 12.5 million euros destined for companies with work centers in the Community of Madrid.
This new aid is distributed in three main lines:
- 8,000,000€ destined to the reincorporation of employees affected by ERTE.
- 2.500.000€ destined to the maintenance of employment of people over 50 years old.
- 2,000,000€ destined to the extension of full-time, part-time, indefinite contracts.
The aid can be requested by companies and businessmen with respect to work centers and their employees located in the Community of Madrid and are considered SMEs:
- Employing less than 250 people
- That its annual turnover does not exceed 50 million euros, or whose annual balance sheet total does not exceed 43 million euros.
Civil societies, communities of property, groups of natural persons or legal entities will not be able to benefit from the aid provided. Or any other type of economic unit or separate assets which do not have their own legal personality.
Aids from the CAM to maintain employment in front of the Covid-19
Incentives for the reincorporation of workers hired indefinitely and affected by ERTE.
Both due to force majeure or economic, technical, organizational and production causes linked to the COVID-19.
Workers affected by the suspension of employment contracts:
Amount of aid: 3,000€ for each full-time reincorporation.
The amount of the subsidy will be reduced proportionally according to the partiality of the worker’s day at the time of application. And provided that it is not less than 62.5% of the working day of a comparable full-time worker.
Workers affected by a reduction in working hours:
Amount of aid: 2,000€ for each reinstatement of a full-time working day.
The amount of the subsidy will be reduced proportionally on the basis of the partiality of the worker’s working day at the date of the application, provided that, at the end of the reduction procedure, the requirement to re-establish a partiality equal to or greater than that which the worker had before being affected by the reduction procedure is met and the latter has not been subject to reduction prior to the application. Workdays with a part-time nature of less than 62.5% of the workday of a comparable full-time worker will not be eligible for subsidy.
Deadlines and call for applications
Call open from 6/08/2020
Application deadline: maximum 1 month from the worker’s return
For reinstatements prior to 05/08/2020, the period counts from the publication of the Agreement (maximum application deadline September 5)
Not applicable for permanent-discontinuous employees.
Reincorporation is understood to have taken place when the normal working day is re-established under the same conditions as before the ERTE was affected.
Commitment: to maintain employment for one year from the reincorporation or date of reestablishment of the working day of the worker in the same working day as before.
In the event of total or partial suspension of the subsidized contract, within the framework of temporary employment regulation proceedings, the obligation of the beneficiary to maintain the subsidized contract and the registration with the Social Security will be deemed to have been fulfilled when he or she has maintained the contracted worker in the activity for at least 12 months, within a maximum period of 18 months.
Incentives for the maintenance of employment of persons over 50 years of age.
Provided that in the period from February 28, 2020 to the day before the application is filed, the average number of workers registered has not decreased.
Amount of the aid: 3,000€ for the maintenance of full-time indefinite employment
The amount of the subsidy will be reduced proportionally in accordance with the worker’s part-time work and provided that it is no less than 62.5 per cent of the workday of a comparable full-time worker.
Application period: from 6/08/2020 to 6/09/2020
Requirement of maintenance of the subsidized hiring will be of 12 months from the date of the request of the subsidy.
In these calls a maximum of five reincorporations and/or re-establishment of working hours per beneficiary, or maintenance of employment of workers over 50 years of age, will be eligible for subsidy.
Incentives for the extension of part-time indefinite-term contracts to full time.
With a seniority of at least two months. And provided that the percentage of extension of the working day is at least a 20% increase.
Amount of the aids:
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- In the extension of the working day that means at least an increase of 80%: 2.000€
- Extension of the working day that means at least an increase between 50% and 80%: 1,500€
- Extension of the working day that represents at least a 20% to 50% increase: 1,000€
The amounts of the subsidies foreseen for the extension of indefinite part-time contracts to full time will be increased by 1,000€, respectively, when the working person receiving the subsidy is a woman.
In all cases, the percentage increases will be measured with respect to the full-time working day.
A maximum of ten indefinite full-time contracts per beneficiary will be eligible.
Open call from 6/08/2020
Application period: maximum 1 month from the contractual novation.
Maintenance requirement of the subsidized contract will be 12 months from the date of extension of the full time working day.
Other aid from the CAM to maintain employment
In addition to the new aids mentioned above, there are others we can help you get.
Incentives for initial indefinite hiring
The current lines are maintained and the incentive for new full-time indefinite-term contracts with unemployed persons who have caused involuntary leave during the state of alarm decreed by Royal Decree 463/2020 of 14 March, including its extensions, is increased.
Amount of the aid:
| Each initial full-time indefinite contract. | 4.000 € |
| Each initial full time indefinite contract made to unemployed persons who have caused involuntary leave, during the state of alarm decreed by Royal Decree 463/2020 of March 14, including its extensions. | 5.000 € |
| Each initial full time indefinite contract made to the following groups: | 5.500 € |
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| Each initial full-time indefinite-term contract made to the following groups: | 7.500 € |
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Additionally, the above amounts will be increased by 500 ? more when the person hired is a woman or belongs to the group of trans people.
In the case that the applicant is a self-employed person who hires his first employee, an additional aid of 2,000€ is contemplated. That will be added to the amount that corresponds according to the profile of the person hired.
Requirements
The persons hired must be registered as unemployed job seekers at the employment offices of the Community of Madrid. For a period of at least one month without interruption and immediately prior to being hired, except in the following cases
- The hiring of workers who have returned from abroad to the Community of Madrid, for whom the registration requirement will not be applicable.
- Hiring of long-term unemployed persons for whom the registration periods provided for in Article 5.1.a) will be required.
- Hiring of unemployed persons who have caused involuntary leave during the extraordinary situation resulting from the COVID-19. For which registration will be required under the terms of Article 5.1.a)
They cannot have worked for the company, group of companies or non-profit entity, in the 6 months prior to the hiring.
Transformation of temporary contracts into indefinite contracts
For those eventual contracts of a duration equal or superior to 6 months that are transformed into an indefinite one, an aid of 3.000€ is established
In the event of conversions to indefinite-term part-time contracts, the amount of the subsidy will be reduced proportionally on the basis of the working day established, taking into account that, in this case, the working day may not be less than 62.5% of the working day of a comparable full-time worker.
Call for applications is permanently open.
Application period: maximum 1 month from the initial contracting or transformation of the contract into an indefinite one.
Maintenance of employment: 1 year from initial hiring or transformation of the contract into an indefinite-term contract.
Must result in a net increase in employment. For this purpose, the daily average number of workers hired under indefinite-term contracts in the account code(s) corresponding to the economic activity and work center where the person hired under the contract for which the subsidy is requested provides his or her services, in the thirty days prior to the conclusion of the contract for which the subsidy is requested, will be taken as a reference.
For the purposes of examining the aforementioned average, those workers who have voluntarily left the company will be excluded. Due to resignation, total or absolute permanent incapacity or great disability, death or retirement, as well as those leaves due to change to another work center of the beneficiary or cases of business subrogation. On the other hand, leaves of absence due to dismissal or at the request of the employer will be calculated up to the last day of the aforementioned period. Notwithstanding the compensation for the excess calculation resulting from the registration of new employees during the aforementioned period. Social Security registrations or cancellations arising from situations of suspension of the employment relationship will not be taken into account for the purposes of compliance with the aforementioned requirement.
Requirements
The requirement of a net increase in the level of permanent employment will not apply to incentive applications for initial permanent contracts and conversions of temporary and training contracts into permanent contracts that are made in 2020, as from the state of alert declared by Royal Decree 463/2020, of 14 March.
In the event of the employee leaving the company, both for contracts subject to aid for initial indefinite-term hiring and for the conversion of contracts into indefinite-term contracts, he must be replaced within one month. And he can be replaced on up to two occasions. The replacement must meet the same requirements and conditions as those that gave rise to the subsidized employment.
Therefore, if you need help, do not hesitate to contact us.
Arrabe Integra
Labour Consulting and HR Management
