Since the SEPE approves the payment of a pending ERTE benefit in May, the advance payment can already be received in the bank.
Thousands of workers, however, are still waiting for their unemployment to be approved and need a financial solution.
Agreement between the SEPE and financial institutions to anticipate the payment of a pending ERTE
The BOE (5/21/2020) makes public the agreements that SEPE has reached with banks and savings banks to advance the payment of unemployment benefits to workers who have suffered a delay in the approval of their benefits.
In the unemployment payroll for April, the government acknowledged that approximately 300,000 unemployment benefits had remained pending its processing, most of them ERTE benefits.
Although there are different situations, most of these people are workers who have been affected by Temporary Employment Regulation Files (ERTE) that companies began to apply on March 14, due to the COVID-19 crisis.
The agreement with banks is an urgent measure so that the more than 300,000 workers affected by ERTE who have not yet received their benefit can receive it at the same time that the SEPE approves it throughout May, without having to wait for the payroll that is paid at the beginning of June.
Who can benefit from this advance in the payment of a pending ERTE?
- The advance payment will benefit people to whom the SEPE recognizes an unemployment benefit or subsidy from May 1st, even if it includes amounts with retroactive effect from March 14, 2020.
- The bank can grant the special advance only once. Normally, the first payment of the benefit.
- It will not be possible to change the bank account in which the payment has been received until the compensation of the advance received is produced.
This agreement with the banks is a breath of fresh air for workers who were pending unemployment payment due to ERTE, but it requires that the SEPE has approved the benefit. There are still thousands of people who will not be able to benefit from the advance until the SEPE processes and approves their case.
How much money will the bank advance?
The SEPE will notify the bank of the amount to advance. The regulation indicates that, for example, for the benefits that the SEPE recognizes during tay, the amount corresponding to the days of benefit recognized until the end of April will be paid.
Example: the company presents an ERTE on March 15 and the SEPE lately approves the special benefit on May 15. The bank will advance the payment of the benefit corresponding to the 15th day of March and the entire month of April. The month of May will be collected by the worker when the normal payment is made, at the beginning of June.
The return of the advance payment to the bank will occur when the SEPE transfers the amount to the financial institution on the normal payment date (days 1 to 10 of the month following recognition of the benefit).
Can the bank charge commissions or interest?
Not. The agreement prohibits it. Commissions or interest cannot be charged, nor can the bank request guarantees from the worker to grant them the advance, since it is the Administration that guarantees that the bank will receive the money back in the transfer of benefits the following month.
Are the banks obliged to always grant the advance to the worker?
No, they are not obliged to advance the benefit in all cases. The agreement establishes in its fourth clause that applying its internal criteria, if the bank considers that it should not proceed with the advance, it may refuse, without the Administration being able to force it to advance payment. This will apply in very exceptional situations
How can I get the bank to advance pending ERTEs benefits?
Once the worker verifies that their benefit has been approved through the SEPE Electronic Headquarters, they will receive the advance of the money from his bank. Some entities are doing it automatically, without the worker having to do anything, such as Bankia, which was one of the first to pay the advanced payments. Other banks contact the worker and in some cases, it is the worker who has to request it from the bank.
Is this agreement the same as the one to advance the payment of benefits and allowances at the beginning of each month?
They are different agreements. This is an agreement to provide urgent liquidity to workers who have not received their unemployment benefits for almost two months, normally due to ERTE. At the same time that the SEPE recognizes the benefit, the worker can request it from the bank, without waiting for the following month. It is an advance that can be requested only once.
There is also another different agreement whereby the banks are advancing the general payment for all citizens who collect subsidies and benefits so that instead of waiting for the collection on the 10th, which is normally when the SEPE pays the entire payroll of the unemployment, the banks advance the payment to day two or three. This was done with the payroll for March and April.
What happens to the thousands of cases that are still pending?
To date, there are no official figures on the number of workers who are still without the approved ERTE benefit. Some Administration source has indicated the figure of 40,000 cases. Still, of course, through social media, and even from the official SEPE accounts, there are testimonies from people who have not received a payment for more than two months, neither from their company nor from the SEPE.
There are many reasons why a benefit may not yet be recognized and the SEPE is processing more than 80,000 new daily benefits. These workers and their families will not be able to benefit from advance payment until SEPE confirms the approval and they need an urgent solution from the Administration.
Do you need more information about pending ERTEs?
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