From the pandemic to the energy crisis: the Government has extended the blockade on dismissal for circumstantial reasons for more than two years

The

advanced by the Government to alleviate the economic effects of the war in Ukraine will lead the labor market to chain two years and three months with the prohibition of dismissing employees for reasons related to the crisis.

Is it forbidden to fire?

In reality, more than a prohibition, it is

: the cost of dismissing a worker rises because the target dismissal compensation is 20 days per year worked, while the cost for an unfair dismissal goes up to 33 days.

Arguing structural reasons when the cause of the dismissal can be considered circumstantial by a judge leads to declaring those dismissals null and void.

Since when?

On March 31,

will expire , a prohibition that dates back to

, when the Government decreed extraordinary measures to combat the pandemic.

The initial limitation, which was extended last February, will be extended until next June, therefore lasting two years and three months without interruption.

Under what circumstances is it possible to fire?

Only in cases where companies can prove structural causes, according to

In all other circumstances, even if the companies have not received direct public aid, they will be penalized.

Just as dismissals linked to the consequences of the pandemic are punished until next Friday, until June the same will happen for other conjunctural reasons, this time linked to the energy crisis or the economic consequences of the war in Ukraine.

And what options do companies have?

In the case of causes derived from the crisis, what is understood as circumstantial reasons,

.

Precisely next Thursday the framework provided in this regard by the labor reform will be released, which could be summarized in

.

The National Shock Plan announced by Sánchez has the labor base already designed.

"It is precisely to apply the labor reform", they explained yesterday in the Ministry of Labor.

What is the RED mechanism?

The RED mechanism

is an extraordinary tool to respond to a company's sustainability problems, whether due to sectoral reasons or general economic circumstances.

It will presumably be released this Tuesday in its

This modality is applied when business difficulties transcend individual cases and affect an entire sector.

Companies and unions raise the request to activate this mechanism to the

in the Council of Ministers at the proposal of the Ministries of Labor, Economy and Social Security.

Benefiting from this aid implies committing to maintain employment in the workforce six months after it has ended.

Temporary suspensions before dismissals

The legal situation will remain like this until next June at least for companies that do not receive direct aid and beyond for those that take advantage of temporary support mechanisms.

The Supreme Court, in an appeal ruling published last February, declared void 87 dismissals made in Bilbao in January 2021. The Supreme Court points out that "

, in which case the employer must proceed to temporary suspensions or reductions in working hours".

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