Suspend employment contracts or reduce the working hours of their workers and thus limit social expenses from april 1 to december 31 and can be extended up to a year in principle. Exemptions from social security contributions with the red mechanism, companies will also be able to have exemptions of 40% of social security contributions, conditional on them offering training plans to their workers. The red mechanism agreement for the travel agency and tour operator sector is included in order pcm/250/2022 and is a tool that was created in royal decree law 31/2021 , this agreement is of a sectoral type, therefore, it is directed exclusively to the support of the travel agency sector.
Exemptions from social security
Relaunch the travel agency and tour operator sector the travel agency and tour operator sector is having great difficulties in starting to relaunch its ordinary activity and obtain the business volume of before the covid-19 pandemic crisis. The government in law 4/2022, of february 25, on the protection Latvia Phone Number of consumers and users in situations of social and economic vulnerability, has already made changes in the travel agency and tour operator sector by ending joint and several liability , which is also an aid to the sector.
the protection of consumers
Inesem business school master in organization of events, business tourism and congresses more information with. The new red mechanism for the sector in addition to being able to benefit from a red erte. Companies in this sector will also be able to benefit from a 40%. Exemption in social security as we have previously mentioned. But in exchange for this they must present a plan of re-qualification. With training for its workers with the aim of relocating them to other jobs. Either in the same company or in others.
Procedure to activate the red mechanism for. Travel agencies according to the labor reform and royal decree law 4/2022 the government activates. The red mechanism it is activated at the proposal of the ministry of labor and social economy. Economic affairs and digital transformation and inclusion, social security and migration. Following a report from the government delegate commission for economic affairs. If the activation were in the sectoral modality. It would be the most representative unions who would convene a tripartite. Commission for the red mechanism before the ministries mentioned above. In