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With furlough you use up unemployment: everything you need to know

With furlough you use up unemployment: everything you need to know

One of the most common questions we hear at ALR Asesoría is: “With furlough, do you use up your unemployment benefits?” It’s a valid concern. Since the pandemic, furloughs (ERTEs in Spain) have become more common, but confusion remains about how they impact unemployment entitlements.

Here, we’ll explain it clearly, without legal jargon, and with the insight of professionals who handle these cases every day.

What is a furlough (ERTE) and how does it work in Spain?

A furlough, known in Spain as an ERTE (Expediente de Regulación Temporal de Empleo), is a temporary measure that allows companies to suspend employment contracts or reduce working hours due to economic or organizational reasons.

During the ERTE period, the employee remains officially employed and may qualify for unemployment benefits, provided they meet the necessary requirements.

With furlough you use up unemployment? It depends on the situation

Let’s address the main question: with furlough you use up unemployment?

The answer has changed over time:

  • During the COVID-19 pandemic, the Spanish government introduced an exception: furloughs did not reduce your unemployment allowance.
  • Now, unless new exceptions are enacted, you do use up your unemployment benefits while receiving furlough payments.

So yes, with furlough you use up unemployment, unless a special legal measure says otherwise.

Total vs. partial furlough: how it affects your benefits

There are two types of furloughs, and each impacts unemployment differently:

  • Total furlough: The contract is completely suspended. The employee does not work and receives 70% of their regulatory base.
  • Partial furlough: The work schedule is reduced (for example, to 50%). The employee works fewer hours and receives a partial unemployment benefit for the non-working time.

In both cases, the time spent receiving benefits reduces your available unemployment allowance.

How many days of unemployment do you use during furlough?

The Spanish SEPE calculates how much unemployment you consume based on your specific furlough terms.

  • With a partial furlough, you use half a day of unemployment per day at 50% reduction.
  • With a total furlough, you use one full day of unemployment per day receiving benefits.

At ALR Asesoría, we recommend checking your employment record and benefit balance regularly through the SEPE portal.

What if you were already receiving unemployment before the furlough?

This situation can be a bit tricky:

  • If you were already receiving unemployment and then enter a furlough, you cannot receive two benefits at once.
  • Usually, your existing unemployment continues, and the furlough does not generate a new benefit period.
  • In some cases (e.g., new contract or company), exceptions may apply.

At ALR, we evaluate each case individually to give accurate, personalized advice.

ALR Asesoría’s tips for workers and employers

Based on our real experience handling ERTEs and unemployment claims, here are some key recommendations:

  • Employees: Always ask if your furlough will affect your unemployment rights.
  • Employers: Communicate clearly to your teams to avoid confusion or legal misunderstandings.
  • Keep all documentation from the SEPE or your company related to the furlough.
  • Seek professional advice when in doubt—each case can be different.

We don’t just file paperwork. At ALR Asesoría, we make sure you understand what’s going on.

Conclusion: understand how furlough and unemployment interact

Yes, with furlough you use up unemployment—unless specific rules exempt your case. Knowing how your benefit is calculated and how to manage it makes a big difference for both employees and companies.

If you’re unsure about your ERTE or unemployment status, reach out to ALR Asesoría. We’ll give you clear, honest answers.