Employment

Fijo discontinuo "bonuses" to last until October

The Balearic government, business and unions were pleased by the fijo discontinuo agreement.

Majorca Daily Bulletin reporterPalma03/07/2020 20:50

Hoteliers in Majorca have welcomed the Spanish government's announcement of social security bonuses for employees with 'fijo discontinuo' contracts. The Majorca Hoteliers Federation and the Association of Hotel Chains said on Friday that this will help to encourage the opening of hotels, as the 50% discounts on contributions will apply to this month and also to August, September and October.

The hotel employers organisations stressed that since the coronavirus crisis started, they have wanted efforts to be oriented towards generating economic activity. "We have not been in favour of 'hibernation' due to the effects that this would have on the economy and on employment."

The bonuses for fijo discontinuo are a further extension to those which were originally established because of the Thomas Cook collapse and had been extended to end-June because of coronavirus. The measure will affect some 78,000 employees and represent a saving to businesses of around 60 million euros.

The Balearic government had been pressing Madrid for an arrangement along these lines. The regional employment minister, Iago Negueruela, said on Friday that the fijo discontinuo bonuses will be added to exemptions from contributions that have been agreed for the rehiring of employees with ERTE terms.

He explained that around two out of three employees under ERTE will benefit, as some 70% of those on ERTE terms are employees with fijo discontinuo contracts. Employers, he added, will be able to open so that workers can return, with this "incorporation" being vital for accessing benefit in winter.