The RED mechanism: how Spain protects jobs during sector crises

Your employer, not you, applies for the benefit when the government activates the scheme. Here is how it differs from an ERTE.

The government can activate a special job protection scheme called the Mecanismo RED de Flexibilidad y Estabilización del Empleo (RED mechanism for job flexibility and stability) when a whole sector faces a crisis. If you work for a company that gets approval to use it, you can claim a benefit called the prestación de sostenibilidad y mantenimiento del empleo (sustainability and job maintenance benefit). This article explains who can get it, how much it pays, and how it is different from a normal ERTE (temporary layoff scheme).

What is the RED mechanism?

The RED mechanism is a legal tool set out in Article 47 bis of the Workers' Statute. The Council of Ministers must approve its activation first. It is meant for two situations: a wider economic problem that forces companies to act, or a sector that needs workers to retrain. Once the Council of Ministers activates it, a company in that situation can ask the Labour Authority (Autoridad Laboral) for permission to use it.

If the Labour Authority says yes, the company can cut staff hours or suspend contracts for a period. Workers affected by this can then claim the sustainability benefit. Read more about registering as unemployed on our page about registering as a jobseeker in Spain.

Do you need to apply yourself?

No. You do not file this claim yourself. Your company applies on your behalf. It uses an official form published on the SEPE website or its sede electrónica (online office). The form needs your consent and lists everyone affected, plus the maximum percentage of hour cuts if hours are being reduced rather than the contract suspended.

The company has one month to submit the application. This month starts from the date the Labour Authority approves the measure, or from the date silence counts as a negative decision. If the company applies late, your right to the benefit still starts on the day it applies. In that case, the company must pay you the amount you would have received from the first day your hours were cut or your contract was suspended.

Who can get the benefit?

You can qualify if your company has approval to apply the RED mechanism and:

• Your job or membership at the company started before the date of the Council of Ministers' approval.
• You are registered with the public employment service that covers you.
• Your contract is not suspended for any other reason unrelated to the RED mechanism.
• Your temporary contract is suspended, or your normal hours are cut, and your pay is cut by the same amount.

You do not need a minimum number of days of prior social security contributions to qualify. Workers at cooperatives and worker-owned companies within the general social security system can also qualify.

How much do you get paid, and for how long?

The extracts confirm two amounts that apply to unemployment benefits in general in 2026: the minimum contributory benefit is 560 euros a month without children, and 749 euros with one child or more. The maximum contributory benefit is 1,225 euros without children, 1,400 euros with one child, and 1,575 euros with two children or more. These are the reference figures the SEPE publishes for contributory unemployment benefits; check the official RED sustainability benefit page for how they apply to your case.

The benefit lasts, at most, until the RED mechanism stops applying at your company. This is an important protection: claiming this benefit does not use up the contributions you have already built up. The time you spend on this benefit does not count as time used against your future unemployment benefit rights, and it does not count as a contribution period for future claims either. There is one exception: the six-year period used to calculate future benefits under Article 269.1 of the General Social Security Act gets pushed back by the same amount of time you spent on this benefit. In plain terms, your normal unemployment benefit rights stay intact.

How is this different from an ERTE?

A normal ERTE (expediente de regulación temporal de empleo, temporary layoff procedure) is a tool a single company can use on its own, for its own reasons, such as a drop in orders. The RED mechanism is different: it can only start after the Council of Ministers activates it for a wider economic problem or for a sector that needs retraining. A company cannot choose to use the RED mechanism by itself. It must first get authorisation from the Labour Authority under a scheme that is already active nationally.

Because of this, workers under the RED mechanism keep their full unemployment rights untouched, as explained above. This is one of the features that makes the RED mechanism a separate legal tool from a standard ERTE, even though both let a company cut hours or suspend contracts for a period.

What should you do if you think this applies to you?

Talk to your employer first: they are the ones who must file the application. If you want to check your registration status or update your details with the SEPE, you may need a cita previa (prior appointment). See our guide on booking a SEPE appointment for the steps. All these procedures are free of charge; nobody should ask you to pay for help with a RED mechanism claim or appointment.

For full details and to check whether the RED mechanism is currently active for your sector, see the official SEPE page on the sustainability and job maintenance benefit and the official page on yearly benefit amounts.