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V0503-16 ·8 February 2016 ·consulta-vinculante Medium impact
Tax

Severance pay exemption may be affected if re-employed by the same company within three years

A worker received severance pay and shortly thereafter signed a fixed-term contract with the same company. The DGT indicates that the exemption from severance pay requires a real and effective termination of the employment relationship.

In 5 key points

How it affects those involved

This ruling clarifies that returning to the same employer within a short period can invalidate the claim that a previous employment relationship was truly terminated, potentially leading to the loss of severance pay exemptions.

Lifecycle

2016-02-08PublishedPublished in the BOE
Official text Based on BOE data (boe.es). Information, not advice.

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This analysis is informational only and does not constitute legal advice or create a client-adviser relationship. BM Consulting.
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