Spain: Extension of restrictions for layoffs linked to grounds arising from the war in Ukraine

Royal Decree-Law 11/2022 of June 25, 2022, adopting and extending certain measures to respond to the economic and social consequences of the war in Ukraine, extends until December 31, 2022 the provision determining that the increase in energy costs cannot be an applicable objective ground for laying off employees at companies benefiting from the types of direct support granted in the legislation. Failure to meet this obligation will require all received support to be refunded.

Furthermore, any companies which elect the reduced working hours or suspension of contracts under article 47 of the Workers’ Statute on grounds relating to the invasion of Ukraine and which also benefit from government support cannot use these grounds either for laying off employees.

In this alert we discuss the new tax legislation in Royal Decree-Law 11/2022.