Problematic issues arising from the regulation of temporary lay-off schemes during the COVID-19 health emergency

ABSTRACT

The regulation of temporary lay-off plans (ERTE) during the health emergency has been subjected to constant normative modifications. The succession of different regulatory norms, periods of validity and ranges of scope has originated a large proportion of the issues affecting the implementation of ERTE linked to COVID-19. In addition, the rules accompanying these ERTE as employment retention clauses —a commitment to safeguard employment, interruption of the duration of fixed-term contracts, prohibition against overtime and new recruitment, limitations in the sharing of dividends or a ban on dismissals on the grounds of COVID— have not ceased to give rise to interpretation and implementation problems. These are the issues, whose effects reach far beyond the currency of the ERTE, subjected to analysis in this study. © 2020 Wolters Kluwer (UK) Ltd.. All rights reserved.