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A query was raised regarding whether rehiring a worker within three years of their dismissal prevents the exemption from severance pay. The DGT explains that this creates a presumption that there was no real termination of the employment relationship, although evidence to the contrary may be presented.
Employers rehiring former staff within a three-year window may face difficulty claiming exemptions from severance pay unless they can prove a genuine break in the employment relationship.
The tax team reviews your specific situation.
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