Companies using Force Majeure Errors, and distributing dividends, could cause them to lose the fee exemption.

Royal Decree-Law 18/2020 determines that the distribution of dividends in companies that benefit from the special ERTE regime may cause them to lose their exemption from social security contributions and states that this measure will not be taken into account for the purposes of exercising the right of separation of shareholders provided for in article 348 bis 1 of the Capital Companies Act.

Royal Decree-Law 18/2020, of 12 May, on social measures in defence of employment, incorporates a measure of a commercial nature, which enters into force on 13 May 2020 and which must be considered by companies that (i) decide to avail themselves of the special ERTE regime based on the causes set out in Article 22 of Royal Decree-Law 8/2020, of 17 March 2020 and (ii) use the public resources earmarked for them, except in the case of companies which, on 29 February 2020, had fewer than 50 employees or similar, registered with the Social Security, as the limitation on the distribution of dividends does not apply to these companies.

These companies:

a) They may not distribute dividends corresponding to the tax year in which these temporary redundancy plans are applied, unless they first pay the amount corresponding to the exemption from social security contributions.

b) The financial year in which the company does not distribute dividends in application of the provisions of the preceding paragraph shall not be taken into account for the purposes of the exercise of the shareholders’ right of separation provided for in Article 348 bis.1 of the Capital Companies Act.