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A query was raised regarding whether redundancy pay remains exempt if a worker is rehired by the same company following a change of control. The DGT indicates that rejoining within three years creates a presumption that there was no real and effective severance of the employment relationship.
This ruling clarifies that companies cannot use temporary redundancies to avoid severance obligations if the worker is rehired shortly after, potentially increasing the tax and social security liabilities for such transactions.
The tax team reviews your specific situation.
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