Temporary layoff hours raised

The government has raised the number of hours for which firms can temporarily lay off workers while continuing to receive state aid.

In most industries the limit rises from 600 to 800 hours a year, while in the textile, clothing and leather ones, and the car industry and those ancillary industries which do at least 50% of their business with it, it rises from 800 to 1,000 hours a year.

These layoffs, known as technical or partial unemployment, let a business in trouble qualify for state aid.

The employer, subject to agreement from the authorities, pays the employee 60% of his or her gross salary and then receives compensation from the state.

The practice gives firms some flexibility in hard times and avoids sackings, though it cuts workers’ wages.

Photo: Ben Corman