RED Flexibility and Employment Stabilisation Mechanism for the motor car manufacturing sector

Activated the RED Flexibility and Employment Stabilisation Mechanism for the motor vehicle manufacturing sector: the affected persons will be able to receive the social protection associated with the RED Mechanism in the event of temporary suspension of the contract or reduction of the working day.

• It will be the commercial or labor company that will be in charge of requesting collectively.
• To receive the protection linked to the RED Mechanism it will be necessary to have the demand for employment registered and to update personal data.  

ElThe Council of Ministers agreed 9 December 2025 extend the RED Flexibility and Stabilisation Mechanism for the motor vehicle manufacturing sector until 30/06/2026 . Companies in the motor vehicle manufacturing sector and those other participants in the production chain or that provide necessary services to the previous ones may request the extension of the measures of temporary suspension of employment contracts and reduction of the ordinary working day of the workers in their workplaces.This request will be made to the competent Labor Authority (AL), as indicated in the article 16 of the Royal Decree 608 / 2023 , of 11 in July, which develops the RED Employment Flexibility and Stabilization Mechanism (General Directorate of Labor or the Labor or Employment Council of the CA or body designated by the CAAC or government delegations).

The General Social Security Law (Royal Legislative Decree 8 / 2015 , of 30 in October, approving the consolidated text of the General Social Security Law) establishes, in its additional provision 41 a social protection that accompanies the suspension and reduction of working hours measures of the RED Mechanism, without the need for the people affected to have a minimum paid period, but it is essential that the employment relationship has begun before the date of the agreement of the Council of Ministers.

People in reduction of working hours or in suspension will carry out the training actions that are determined during the application of these measures (requalification plan) before six months from the end of the period of validity of the RED Mechanism.

Collective request and activity communication files

To apply for social protection linked to the RED Mechanism, companies will send to the SEPE a collective application in the official template that is in force at that time and that will be published on the SEPE website.

As many collective requests as necessary may be submitted to include all affected staff during the RED Mechanism measures. The deadline for submitting the application is 1 month from the date of notification of the decision of the AL or from the date of notification of the certificate of administrative silence, or from the first day of inactivity, if the worker was later incorporated into the measures of the mechanism, for certain situations such as temporary incapacity, birth and care of minors (maternity/paternity), leave, discontinuous fixed in inactivity at the end of the campaign and similar situations.

The affected persons must authorize the company to send their data through the collective application and register as job seekers, updating their personal data if necessary, in the employment office of the Autonomous Community.

The companies will also send monthly information on the time of activity and inactivity of each worker through Certific@ 2 (XML activity communication files of the RED Mechanism). By the same means, they will inform of the end of the suspension or reduction of working hours, so that there are no undue payments.

For more information, please contact the Basic social protection processing guide RED published on the SEPE website.

Duration and amount of social protection

The amount of the benefit associated with the RED Mechanism is the 70 % of the regulatory base (the average of what is quoted in the last 180 days or the time you have worked, if less) for the entire duration of the measure of suspension or reduction of working hours, always within the period established in the agreement of the Council of Ministers ( 1 from January to 31 December 2025 ).

The maximum monthly amount to be received will be 225 % of the public indicator of monthly multiple income (IPREM) in force at the time of entitlement increased by one sixth, regardless of whether or not there are dependent children. According to IPREM in force a 01/01/2025 the maximum amount would be 1 . 575 , 00 euros.

If the contract was part-time, that maximum of 225 % shall be reduced on the basis of the weighted average of partiality in the undertaking concerned by the mechanism. So a person with contract in the company to 50 % could charge, at most, 787 , 5 gross euros.

Quotation

During the application of the suspension or reduction measures, the company will enter the contribution of the contribution corresponding to it, and the management entity (SEPE or ISM) must enter only the contribution of the worker, after discounting its amount from the amount of the benefit.

Companies will be able to obtain exemptions in the Social Security contribution, as indicated in the additional provision 44 a of the consolidated text of the General Social Security Law, provided that the conditions and requirements included therein are met.

Compatibilities and incompatibilities

The social protection linked to the RED Mechanism is incompatible with the receipt of unemployment benefits or benefits, with the active income of insertion and with the cessation of activity benefit.

In the event that a person is making a benefit compatible with work that is suspended or reduced in working hours, social protection linked to the RED Mechanism will be denied. If the person is more interested in RED protection than the benefit he or she receives, he or she may file a prior claim with SEPE to request payment of the RED protection instead of the one he or she is receiving. The unemployment benefit would be interrupted, not consumed, and could be re-received later, if it met the requirements for it.

Other situations

Companies with workers included in the Regime of the Sea will request the social protection of RED Mechanism before the Social Institute of the Navy (ISM), entity managing unemployment benefits for the regime of the sea.

If self-employed persons providing services to the automotive sector are affected, they may apply to their mutual or to the ISM (for the sea regime) for the specific provision of the additional provision. 48 a of the General Social Security Act (RED Mechanism for Self-Employed Persons).

Summary of actions

The following is a summary of the actions that companies and individuals have to carry out with regard to social protection linked to the RED Mechanism. They are:

COMPANIES

1. Request the suspension/reduction measures to the AL.
2. Send to the SEPE the collective requests for the payment of social protection to their workers.
3. Send to the SEPE the XML files of monthly activity for the activation of protection payments, including the interruption of protection due to termination of suspension/reduction measures and other situations affecting the benefit (IT, maternity/paternity,…).
4. Keep informed, through the SEPE website, of the procedure (basic guide, XML manual for RED, …)
5. Other information actions that correspond to the AL, MITES, ITSS and TGSS.

PEOPLE

1. Authorize the company to send its data through the collective request of the RED Mechanism.
2. Register as a job applicant in the office of your Autonomous Community.
3. Check personal and contact details and update them accordingly with the employment office.
4. Inform the SEPE of any situation of incompatibility with the social benefit they are perceiving.