The summary of the economic measures for the self-employed in relation to COVID-19 derived from RDL 8/2020 is limited to two lines in Article 17 of the RDL.
Extraordinary benefit for cessation of activity for those affected by the declaration of the state of alarm for the management of the health crisis situation caused by COVID-19.
However, we will try to make a summary of all those measures for the self-employed. Or which can be added.
Economic measures for the self-employed in relation to COVID-19.
We are going to go from the most specific for the self-employed to the most general, which they could also join.
Extraordinary benefit for cessation of activity
Effective one month or until the end of the Alarm State, whichever is longer. Incompatible with any other benefit of the Social Security system.
The purpose of this benefit is to cover the situation of termination of the activity of the self-employed. Caused by a situation that is in any case involuntary and which must always be duly justified in order to access the corresponding economic benefit.
This benefit is managed by the mutual insurance companies that collaborate with the Social Security. And the Social Institute of the Navy for sea workers. And all of them with the collaboration of the public employment services of the Autonomous Communities.
For more details you can read this article.
Guarantees for financing
Granted by the Ministry of Economic Affairs and Digital Transformation, in accordance with article 29 of RDL 8/2020.
Their purpose is to meet the needs arising, among others, from the management of invoices, the need for working capital, the maturity of financial or tax obligations or other liquidity needs.
These guarantees are part of a package of up to 100,000 million euros. The conditions, terms and requirements of these guarantees have yet to be regulated.
Measures for the Self-Employed in Madrid
We can refer to another publication of ours where we explain the measures taken by the City Council and the Community of Madrid, to which the Self-Employed can be added.
Likewise, the aid to existing SMEs in which self-employed workers who meet the same requirements can be included.
Tax debt deferment
Royal Decree-Law 7/2020 provides for a measure to make tax debt deferrals more flexible, applicable only to SMEs and the self-employed. For more details, please read this article.
Files for the Regulation of Temporary Employment. ERTE
Just like with companies. Self-employed people who have hired employees may apply:
Suspension of the work contract or reduction of the working day (ERTE) for economic, technical, organisational or production reasons, or due to force majeure (TERF for major force)
Temporary change of the commercial rents
As there is case law on the subject, we believe that it is possible to demand such a modification on a temporary basis. However, in our opinion, it is better to reach a reasonable agreement between the parties.
We will continue informing you when more measures will be published that apply specifically or not in the case of the Self-Employed.