An ERTE (temporary layoff scheme) often causes confusion about whether any kind of severance payout is owed, precisely because, unlike a dismissal, the employment contract isn't terminated: it's only suspended or temporarily reduced.
Why an ERTE doesn't trigger severance pay
Severance pay is, by definition, the settlement of outstanding items when an employment relationship ends. In an ERTE, the employment contract isn't terminated: it's temporarily suspended (a suspension-type ERTE) or working hours are reduced (a reduced-hours ERTE), while the employment relationship remains in force. So no severance is owed while the ERTE is in effect.
What happens to your pay during a suspension-type ERTE
During the full suspension of your contract under an ERTE, you don't receive salary from the company for the suspended period, since no work is being performed. Instead, you're entitled to unemployment benefits (if you meet the general requirements), calculated in a similar way to ordinary unemployment benefits, though with certain particularities specific to ERTEs.
What happens under a reduced-hours ERTE
If the ERTE involves a reduction in hours (not a full suspension), you keep working and getting paid for the portion of your schedule that remains, and you receive unemployment benefits proportional to the reduced portion of your hours, so that the combination of both incomes (reduced salary plus proportional benefit) partly offsets the reduction in your usual working hours.
Reinstatement of unemployment rights: a notable particularity
One of the distinctive features of unemployment benefits used up during an ERTE is that, under certain conditions and specifically regulated periods (which have varied according to different employment-support measures over recent years), those days used may not be deducted (or may only be partly deducted) from your total accrued unemployment entitlement, unlike what would happen with unemployment benefits used up under other circumstances.
What happens if the ERTE ends in a later dismissal
If, after the ERTE ends, the company decides to permanently terminate your contract (for example, through a subsequent collective dismissal if the situation that triggered the ERTE worsens), full severance pay would then be owed, settling all outstanding items and, if applicable, the compensation corresponding to that specific type of dismissal.
Check your situation if you're currently under an ERTE
If you're currently under an ERTE and have questions about your situation, it's worth checking directly with your company or with the SEPE (the public employment service) about the specific details of your case, since the specific conditions can vary depending on the regulations in force at any given time.
If your situation ends in termination
Our severance pay calculator helps you estimate the items and indicative compensation if, after an ERTE, your contract ends up being terminated.