Can the Spanish Labor Force Adjustment Plans Automatically Extend the Professional Football Players’ Contracts? Can FIFA Do That?

In the current climate, given concerns about COVID-19, the buzzword in Spain is “ERTE.”

1.- What is an “ERTE”?

Spanish labor law regulates a series of labor force adjustment plans that companies can adopt when there exist duly justified reasons.

Thus, among other reasons, due to the existence of temporary force majeure conditions in those activities - like sports - that have been prohibited by the Spanish Government, the employer may decide to suspend employment contracts or reduce working hours through a mechanism called “ERTE” (being, the Proceeding for Temporary Regulation of Employment, by its Spanish initials).

In light of the legislative developments resulting from the declaration of the state of alarm due to the COVID-19, many media outlets and several authors’ opinions have expressed the view that the professional athletes’ contracts, which have been suspended as a result of an ERTE should be “automatically extended” ope legis for the same period of suspension, even...

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