When an Employee Reduction Program (ERE) is applied, the employees affected receive unemployment benefits, for the first two years, and then their social contributions are funded by the public funds. The Minister of Labor is preparing an amendment to the decree-law on active employment policies which states that businesses making a profit – which is the case for Telefónica – and that implement an ERE systematically have to repay the State the equivalent of the expenses paid for by the public organizations (see our dispatch No. 110283). If this reform isn’t ready in time, the Minister already announced that it would ask Telefónica to reimburse the benefits and contributions already paid.
esses making a profit – which is the case for Telefónica – and that implement an ERE systematically have to repay the State the equivalent of the expenses paid for by the public organizations (see our dispatch No. 110283). If this reform isn’t ready in time, the Minister already announced that it would ask Telefónica to reimburse the benefits and contributions already paid.
Planet Labor, May 27, 2011, No. 110368 – www.planetlabor.com
Do you have information to share with us?