Firing employees during State of Alarm is banned in Spanish Government move to promote temporary redundancies

THE firing of employees during the State of Alarm has been banned by the Spanish government to try to encourage temporary redundancies

The Cabinet move also means that temporary contracts cannot expire.

It comes amid reports thousands of companies have put forward plans to the Catalan and Spanish governments for temporarily laying off employees while the crisis lasts.

According to Catalan News, more than half of companies in Catalonia surveyed by the Barcelona Chamber of Commerce have submitted temporary redundancy plans, with 5 per cent of firms opting not to renew the contracts of temporary staff and 8 per cent permanently reducing their workforce.

The survey, published yesterday reveals a third of companies have ceased doing business, with another 18 per cent cutting back their business activity. Fourteen per cent are experiencing cash flow problems.

This week, Pimec business association estimated that the losses to small and medium-sized companies and self-employed people could amount to €46.8 billion if the State of Alarm continues for another month.